JPMorgan’s Investment Banking Fees Slide 50% In Q3

JPMorgan’s Investment Banking Fees Slide 50% In Q3

Last quarter JPMorgan CEO Jamie Dimon caused quite a stir when we unexpectedly suspended the bank‘s stock buyback, and warned that an “economic hurricane” was coming.

Today we may have just gotten the first windy blast of said atmospheric phenomenon today when the bank’s President Daniel Pinto said that investment-banking fees may fall as much as 50% in the third quarter as clients stay on the sidelines amid uncertainty around inflation, the Fed’s rate hikes and the potential for a recession.

That said, even slashed in half, JPMorgan will still survive – the bank pulled in $3.3 billion in investment-banking fees in Q3 2021, boosted by record advisory revenue.

It’s not all bad: according to Pinto, the firm also expects markets revenue to increase 5% Y/Y in Q3 as macro businesses boost fixed-income trading results while equity markets trend down against a record (retail driven) Q3 of $2.6 billion a year ago.

Of course, in a worst case scenario, JPM will just paralyze the repo market again and get another multi-trillion bailout.

Tyler Durden
Wed, 09/14/2022 – 06:55

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