J.P. Morgan’s markets and securities services revenue has totalled $10.1 billion for Q1 2021, which marks an increase of 37 per cent compared to its Q1 2020 figure of $7.3 billion.
Securities services revenue came in at $1.1 billion, which is down 2 per cent compared to last year’s results. J.P. Morgan says this is with deposit margin compression largely offset by deposit balance growth.
Markets revenue was $9.1 billion, up 25 per cent, while fixed income markets revenue was $5.8 billion, up 15 per cent, predominantly driven by strong performance in securitised products and credit.
According to J.P. Morgan, this was largely offset by lower revenue in rates and currencies and emerging markets against a favourable performance in the prior year.
J.P. Morgan’s markets and securities services revenue for Q3 2020 totalled $7.8 billion, a 29 per cent increase from its Q3 2019 figure of $6 million.
Key results from the Q1 2021 report also show that equity markets revenue was up 47 per cent at $3.3 billion, which is said to be driven by strong performance across products.
Credit adjustments and other was a loss of $3 million, compared to a loss of $951 million in the prior year which was predominantly driven by funding spread widening on derivatives.
J.P. Morgan’s firm wide metrics reported revenue of $32.3 billion; managed revenue of $33.1 billion.
Commenting on the financial results, Jamie Dimon, chairman and CEO, says: “J.P. Morgan Chase earned $14.3 billion in net income reflecting strong underlying performance across our businesses, partially driven by a rapidly improving economy.”
Dimon explains: “These results include a benefit from credit reserve releases of $5.2 billion that we do not consider core or recurring profits. We believe our credit reserves of $26 billion are appropriate and prudent, all things considered.”
Elsewhere, the Q1 2021 results of State Street, Citi, and
BNY Mellon have also recently been revealed.
