JPMorgan Chase sees Q2 spike for markets and securities services revenue
15 July 2020 New York
Image: wanpatsorn/Shutterstock
JPMorgan Chase has revealed its markets and securities services revenue increased by 77 percent to $11.3 billion in Q2 2020.
The Q2 results showed that securities services revenue was $1.1 billion, up 5 percent, which JPMorgan Chase said was predominantly driven by balance and fee growth partially offset by deposit margin compression.
Elsewhere, markets revenue stood at $9.7 billion, up 79 percent, while fixed income markets revenue was $7.3 billion, up 99 percent, or up 120 percent excluding the gain from the initial public offering (IPO) of a strategic investment in Tradeweb in the prior year.
According to JPMorgan Chase, this was driven by strong performance across products, particularly in rates, currencies and emerging markets and credit.
Figures showed that equity markets revenue was $2.4 billion, up 38 percent, predominantly driven by strong client activity in derivatives and cash equities.
Commenting on the report, Jamie Dimon, chair and CEO, commented: “During these unprecedented times, JPMorgan Chase remains resilient and steadfast in using all of our resources to support our colleagues, clients and communities across the globe.”
Dimon continued: “Despite some recent positive macroeconomic data and significant,
decisive government action, we still face much uncertainty regarding the future path of
the economy. However, we are prepared for all eventualities as our fortress balance
sheet allows us to remain a port in the storm. We ended the quarter with massive loss-absorbing capacity - over $34 billion of credit reserves and total liquidity resources of
$1.5 trillion, on top of $191 billion of CET1 capital, with significant earnings power
that would allow us to absorb even more credit reserves if needed.”
He added: “This is why we can continue to serve all of our stakeholders and to pay our dividend - unless the economic situation deteriorates materially and significantly.”
The Q2 results showed that securities services revenue was $1.1 billion, up 5 percent, which JPMorgan Chase said was predominantly driven by balance and fee growth partially offset by deposit margin compression.
Elsewhere, markets revenue stood at $9.7 billion, up 79 percent, while fixed income markets revenue was $7.3 billion, up 99 percent, or up 120 percent excluding the gain from the initial public offering (IPO) of a strategic investment in Tradeweb in the prior year.
According to JPMorgan Chase, this was driven by strong performance across products, particularly in rates, currencies and emerging markets and credit.
Figures showed that equity markets revenue was $2.4 billion, up 38 percent, predominantly driven by strong client activity in derivatives and cash equities.
Commenting on the report, Jamie Dimon, chair and CEO, commented: “During these unprecedented times, JPMorgan Chase remains resilient and steadfast in using all of our resources to support our colleagues, clients and communities across the globe.”
Dimon continued: “Despite some recent positive macroeconomic data and significant,
decisive government action, we still face much uncertainty regarding the future path of
the economy. However, we are prepared for all eventualities as our fortress balance
sheet allows us to remain a port in the storm. We ended the quarter with massive loss-absorbing capacity - over $34 billion of credit reserves and total liquidity resources of
$1.5 trillion, on top of $191 billion of CET1 capital, with significant earnings power
that would allow us to absorb even more credit reserves if needed.”
He added: “This is why we can continue to serve all of our stakeholders and to pay our dividend - unless the economic situation deteriorates materially and significantly.”
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