JP Morgan’s trading fees drop 19% amid ‘challenging’ market

JP Morgan’s transaction fees fell 19% in the first quarter, and it’s expected to be a difficult earnings season for Wall Street investment banks.

Wall Street Bank earned $1.6 billion in investment banking fees in the first quarter, compared with $2 billion in the same period last year.

JP Morgan remains at the top of the trading fees chart with his 8.7% market share, according to data provider his Dealogic. So far, global trading revenue in 2023 is down 39% to $17.3 billion.

JP Morgan chief financial officer Jeremy Burnham said at his February financial conference in Credit Suisse that investment banking revenues will rise by 20% and transaction fees will fall slightly. He said he does.

JP Morgan’s corporate and investment banking revenues of $13.6 billion in the first quarter were flat year-over-year as fixed income transaction fees remained flat. But stock trading he fell 12% to $3.1 billion.

At the end of the quarter, the bank had 68,292 employees in the division, up 9% from a year ago.

Total revenue of $38.3 billion exceeded analyst estimates of $36.2 billion in the first quarter, a record for JP Morgan.

READ In a statement, JP Morgan asked senior bankers to “lead by example” and spend five days a week in the office.

Weak trading activity last year prompted banks to cut bonuses and move down the ranks, but remained subdued in the first quarter. According to Dealogic, the size of M&A from January to March was $550.5 billion, down 45% year-over-year, but the IPO drought continued. JPMorgan’s M&A advisory services revenue in the first quarter beat analysts’ expectations, but he was down 6% year-over-year. Fixed Income Capital Markets revenue was down 34%, he was $1 billion.

Major US banks saw first deposit inflows after Silicon Valley Bank and Signature Bank collapsed after deadly runs on lenders in March. But customers looking for higher returns elsewhere are siphoning money from big companies.

JP Morgan’s deposits fell to $2.38 trillion in the first quarter, which was above analyst expectations.

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