JP Morgan Expects 4th-Quarter Trading Down Around 15% From 3rd Quarter
November 17 2015 - 3:20PM
Dow Jones News
J.P. Morgan Chase & Co.'s trading results for the fourth
quarter are expected to fall around 15% from the third quarter,
similar to its year-ago results, according to a senior executive at
the firm.
Daniel Pinto, J.P. Morgan's corporate and investment bank chief,
said at an investor conference Tuesday "more or less we are in that
zip code" as the bank's 15% drop in the same period last year.
Mr. Pinto said J.P. Morgan's rates business has been strong this
year. Its credit business has faced a more challenging year while
its equities business overall is flat year over year. He added that
there were some reductions in client trading volumes in the last
quarter.
Mr. Pinto also shed light on October trading compared to
November trading so far. He said October was "a bit more
challenging" with lower client volumes, but said there was some
growth in volumes in November.
In the bank's most recent quarterly filing, it said markets
revenue -- which includes revenue from its large fixed-income arm
as well as from its equities unit -- "is expected to decline
sequentially due to seasonal trends."
Last year, J.P. Morgan's fourth-quarter markets revenue dropped
13% from a year earlier to $3.64 billion. Prior to those earnings,
Chief Financial Officer Marianne Lake said J.P. Morgan's tradingÂ
revenue would be down in the high-teens as the bank suffered from
the loss of its physical commodities business and slow
credit-trading conditions, among other things.
Since it has been about a year since the announcement of the
sale of J.P. Morgan's physical commodities business, that is not
expected to further factor into results.
Mr. Pinto also said that he expects interest rates to rise in
December, but he doesn't expect that to impact J.P. Morgan's
trading very much.
Write to Emily Glazer at emily.glazer@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 17, 2015 15:05 ET (20:05 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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