The JPMorgan Chase could be set for its strongest quarterly transaction payments, according to CEO Amy Dimon, helping to offset anemic loan growth and slowing down the bank’s trading revenue.
“Investment banking is one of the best quarters ever,” Dimon told a virtual conference hosted by Morgan Stanley on Monday.
“For last year, I would just use a number like 20 percent [and] previous quarter. It can be 15-20%. “The reason is that there are big deals that may or may not be closed.”
Since the middle of last year, Wall Street banks have benefited from an increase in merger-acquisition activity. This is due to the growth of special purpose acquisition companies, the private equity sector looking for deals, large corporate buyers filling in cash, as well as a strong debt-to-equity fundraising market.
According to Refinitiv, JPMorgan currently tops the list of investment banking payments in the world, up just over $ 5.5 billion from $ 3.98 billion last year. The bank also increased its share of payments, making 8.3% from 7.5%.
Dimon warned that the recent boom in fixed income securities trading slowed down this quarter.
“Last year was exceptional. The last quarter was exceptional. “This quarter is more normal than I would call it.” Dimon he said.
He predicted that in the coming quarter the bank will see a profit from trade “a little north of $ 6 billion, which is still quite good.”
One of the concerns of the bank’s investors and analysts was the insufficient growth of lending, which the banks put on the market to be full of liquidity, to prevent cash from the US government և consumer incentive programs. Federal Reserve System,
Dimon said the bank was beginning to see credit growth “just a little bit younger.” He said it would eventually fall on the coats of a strong US economy.
Dimon also used his speech at the conference to reduce JPMorgan’s forecast for 2021 from net interest income, excluding interest-bearing assets, to $ 52.5 billion, up from $ 55 billion previously, which he acknowledged. “It’s a little disappointing.” ,
JPMorgan reported second-quarter earnings on July 13. It: In the first quarter, earnings increased fivefold,