(Reuters) ? JPMorgan Chase & Co's trading revenue is running 30 percent lower this quarter than the previous period, while investment banking fees are likely to fall by about 50 percent, a senior executive said on Tuesday.
Lower market levels are also cutting into asset management revenue, and the bank is on track to report a modest loss in its private equity business, Jes Staley, JPMorgan's head of investment banking, said at a Barclays Capital conference in New York.
The forecasts were grim enough to spur Credit Suisse analyst Moshe Orenbuch to slash his third-quarter earnings forecast for JPMorgan to 81 cents per share from $1.22.
Analysts expect a weak third quarter for investment banks because of global stock market turmoil and the European debt crisis, and have been cutting their earnings estimates in recent weeks.
With just three weeks left in the quarter, global investment banking fees for all of Wall Street amounted to $11.2 billion, 51 percent less than for all of the second quarter, according to Thomson Reuters/Freeman Consulting.
JPMorgan's investment banking fees could be about $1 billion in the third quarter, Staley said, compared with $1.9 billion in the second quarter. Stock and bond trading revenue could drop by about a third from the second quarter.
The investment bank that Staley oversees is the largest of JPMorgan's six business segments, contributing nearly 40 percent of the company's $5.43 billion of second-quarter net income. He is widely seen as a possible successor to Chief Executive Officer Jamie Dimon.
Standalone investment banks like Goldman Sachs Group Inc are likely to suffer most from difficulties in that business.
The analysts' average estimate for Goldman's third-quarter earnings had fallen to $2.09 a share on Monday from $2.65 on September 1, according to Thomson Reuters I/B/E/S.
Estimates for JPMorgan, which gets more of its business handling consumer accounts and lending directly to individuals and businesses, have slipped only a penny to $1.20 a share in that time.
Staley said the JPMorgan was "not worried" about its European loans. It is the second-largest U.S. bank, with $2.2 trillion of assets.
JPMorgan is usually the first major U.S. bank to report quarterly earnings. Results are next due in October.
Shares of JPMorgan were up 1 percent at $32.74 in afternoon trading. They have fallen about 23 percent year to date.
(Reporting by David Henry and Lauren Tara LaCapra in New York; Editing by Lisa Von Ahn)
study study sf giants elton john clint eastwood modern warfare 3 hawthorne
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.