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JPMorgan Chase could settle into one of its strongest quarters for hiring commissions, according to CEO Jamie Dimon, which would help offset the anemic growth of the loan and the slowdown in the bank’s business revenue.
“Investment banking, could be one of the best quarters we’ve ever seen,” Dimon said Monday at a virtual conference hosted by Morgan Stanley.
“I would only use a number like 20% for the previous year [and] previous quarter. It could be 15 to 20%. The reason is that there are great offers that may or may not close.
Since the middle of last year, Wall Street banks have benefited from an increase in mergers and acquisitions activity. This has been driven by the rise of special purpose procurement firms, a large amount of private equity capital seeking deals and large buyers of cash companies, as well as a robust market for fundraising. debt and equity.
JPMorgan currently ranks first in the ranking of investment banking commissions earned globally, according to Refinitiv, with just over $ 5.5 billion a year, up from $ 3.988 billion a year earlier. The bank has also increased its commission share to 8.3% from 7.5%.
Dimon warned that the recent boom in fixed and equity securities trading had slowed this quarter.
“Last year’s quarter was exceptional. The last quarter was exceptional. This quarter is what I would call more normal. Dimon dit.
He predicted that the bank would see revenue from trading in the next quarter, “a little north of the $ 6 billion, which is still pretty good.”
One of the areas of concern for investors and banking analysts has been the low growth in lending, which banks have put on the market flooded with liquidity and which consumers are clinging to in the US government stimulus programs and Federal Reserve.
Dimon said the bank was beginning to see “just a little teenage” loan growth. He said he would eventually resume attacks from a strong U.S. economy.
Dimon also used his appearance at the conference to reduce JPMorgan’s forecast for 2021 net interest income, which is income from assets that carry interest net of financing costs, to approximately $ 52.5 billion. $ 55 billion earlier, which he acknowledged was “a little disappointing.” .
JPMorgan reports second-quarter earnings on July 13th profits multiplied by five in the first quarter.
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