Nupur Anand
NEW YORK (Reuters) – JPMorgan Chase & Co has raised its forecast for second-quarter investment-banking profit to rise 25 percent to 30 percent on strength in capital markets, executives said on Wednesday.
The bank said in May it expected second-quarter investment banking revenue to increase in the mid-teens.
“Capital markets remain extremely strong and our overall franchise is improving,” said Troy Loebaugh, co-CEO of JPMorgan’s commercial and investment banking division.
Trading revenue is expected to improve slightly, exceeding the mid-single-digit increase the bank had initially forecast.
In the first quarter, JPMorgan’s trading revenue fell 5% to $8 billion, with revenue from fixed income, currencies and commodities falling 7%, while equities were flat.
Meanwhile, investment banking revenue rose 27% to $2 billion in the first quarter, driven by higher debt and equity underwriting fees.
JPMorgan’s board of directors has named Rohrbaugh as a candidate to succeed CEO Jamie Dimon, who is expected to step down within the next five years.
Other nominees include Jennifer Piepszak, co-CEO of commercial and investment banking, Marianne Lake, CEO of consumer and community banking, and Mary Ardos, CEO of asset and wealth management.
(Reporting by Nupur Anand in New York and Manya Saini in Bengaluru; Editing by Ranan Nguyen)
