JPMorgan Expects Mid-to-High Teens Growth in Q3 Investment Banking Fees and Markets Revenue

AnalystEarnings

โดย Insider Monkey·

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JPMorgan Chase & Co. expects investment banking fees and markets revenue to rise in the mid-to-high teens percentage in the third quarter, according to co-President Doug Petno, a sharp contrast with Bank of America's expectation for a roughly 10% decline in investment banking fees. Petno said the bank entered the quarter with a strong pipeline and broad-based strength, particularly in M&A, as management and boards show greater confidence in pursuing transactions. The outlook builds on a strong second quarter, when JPMorgan's investment banking fees rose 30% year over year and markets revenue rose 35%, with equity trading up 86% and fixed-income trading up 6%. JPMorgan was also involved in major transactions including NextEra Energy's $67 billion merger with Dominion Energy and Alphabet's $85 billion equity offering, and Reuters reported it remained the global investment-banking revenue leader after its fees rose 28% in the first quarter. Bank of America expects third-quarter investment-banking revenue of $1.6 billion to $1.8 billion, down from $2 billion a year earlier, and flat sales and trading revenue, while JPMorgan raised its 2026 expense forecast to $107.5 billion from $105 billion in July, partly because higher revenue generates higher compensation and other variable costs.