Rocky markets give JP Morgan’s traders a boost
VOLATILE markets gave JP Morgan’s profits a boost in the first quarter, with uncertainty giving its bond and currency traders more work, the giant investment bank said yesterday.
The US institution’s profits came in at $5.9bn (£4bn) in the first quarter, up 12 per cent on the year.
Its revenues rose four per cent to $24.1bn, outstripping the two per cent rise in its non-interest expenses, which came in at $14.9bn.
Bond trading revenues increased five per cent on the year to $4.1bn and equity trading revenues came in at $1.6bn, up 22 per cent.
Investment banking fees also rose 22 per cent to $1.8bn, with all segments of the business improving.
Advisory revenues rose 42 per cent on the year to $542m, while equity underwriting raked in $399m, up 13 per cent, and debt underwriting revenue came in at $820m, up 16 per cent.
“Macro events including central bank actions, the removal of the Swiss franc peg, the stronger dollar, and oil price volatility, supported markets performance,” chief financial officer Marianne Lake told analysts yesterday.
Some of that strength in the investment banking arm was offset by weakness in corporate and retail operations. Steven Chubak of Nomura praised JP Morgan’s “good expense discipline”.
He singled out its cost to income ratio as a healthy number, coming in at 57 per cent, rather than the 59 per cent he had expected.
JP Morgan’s shares rose 1.32 per cent as investors welcomed the results.