JPMorgan expects revenue and expenses to remain about unchanged from last year as the bank waits for the benefit of higher interest rates and plows cost savings into investments, Chief Financial Officer Marianne Lake said.
Bloomberg News reports that expenses will come in at around $56bn while revenue will roughly match last year’s level, Lake said Tuesday at an investor conference in New York. She reiterated JPMorgan’s forecast for second-quarter trading revenue to grow by a percentage in the ‘mid-teens’ from the same period a year ago.
“If I look at overall revenues year-over-year, they are more flat,” Lake said. “That’s because the upside that we’ve got in markets is offset by lower fees in CIB, and lower asset-management and card,” she said, referring to the corporate and investment bank.
JPMorgan isn’t immune to the low interest rates sapping the industry’s revenue despite its rank as the nation’s biggest bank, which Lake touted as an advantage. Led by Chief Executive Officer Jamie Dimon, the company is digesting new regulations and capital rules, and navigating volatile markets that include an oil-price rebound after a sudden plunge, she said.
To access the complete Bloomberg News article hit the link below: