Nupur Anand
NEW YORK (Reuters) – JPMorgan Chase raised its investment banking earnings forecast, forecasting a 25% to 30% jump in the second quarter, driven by capital markets, a top executive said on Wednesday.
In May, the bank predicted that investment banking revenue would rise by an average percentage in the second quarter.
“Capital markets continue to be extremely resilient and the overall client base has improved,” said Troy Rohrbaugh, co-CEO of JPMorgan’s commercial and investment bank.
Trading earnings are expected to improve slightly, beating the bank’s previous estimate of mid-single digit percentage growth.
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, helped by higher debt and equity underwriting fees.
JPMorgan’s board of directors has identified Rohrbaugh as a potential candidate to succeed CEO Jamie Dimon, who is expected to step down in less than five years.
Other contenders include Jennifer Pipsack, co-CEO of commercial and investment banking, Marianne Lake, CEO of consumer and community banking, and Mary Erdos, CEO of asset and wealth management.