JPMorgan Chase & Co.’s first-quarter trading revenue could decline from a year ago, Chief Financial Officer Jeremy Barnum said.
(Bloomberg) — JPMorgan Chase & Co.’s first-quarter trading revenue could decline from a year ago, Chief Financial Officer Jeremy Barnum said.
In 2022, the first quarter was “exceptionally strong, so we would be thrilled if we could duplicate last year’s performance,” Barnum said Tuesday at a Credit Suisse Group AG conference. “As we sit here today our central case is to probably come in a little bit worse than last year but, obviously, we’re not even halfway through the quarter yet.”
The biggest US bank pulled in $8.8 billion across fixed-income and equity trading in the first three months of 2022 as market volatility soared amid high inflation and Russia’s attack on Ukraine. As for investment banking, quarterly revenue could fall 20% from last year’s $2.1 billion, Barnum said Tuesday.
Barnum also said that the most “notable loan-growth story” right now is credit cards, where his firm has seen “robust growth.” Still, revolving balances per account remain below pre-pandemic levels, he said.
The CFO also discussed JPMorgan’s spending, a hot topic for investors over the past year as the New York-based bank has been on a spending spree to bolster offerings and fend off competition.
“Any given quarter, even any given year’s returns, are probably not a proof point for that year’s investments,” Barnum said. “We are benefiting today from investments that have been made over the prior decade and many of the investments we’re making now will pay off over the following decade.”
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