Investment-banking fees fell 47%, less than analysts expected. JPMorgan President Daniel Pinto said last month that revenue from the business could fall by half as clients spooked by economic uncertainty stay on the sidelines. Trading revenue rose slightly, with a 22% jump in fixed income offset by an 11% drop in equities. Pinto said last month that markets revenue could increase 5% in the third quarter from a year earlier.
The firm set aside $1.5 billion for potentially soured loans, more than the $1.2 billion analysts expected. That’s a stark contrast from a year ago, when the firm’s earnings were boosted by reserve releases after predicted losses tied to the Covid-19 pandemic never materialized.
This article was provided by Bloomberg News.