J.P. Morgan Chase said that third-quarter trading revenue is headed for a mid-single-digit decline because of the impact of the corporate tax overhaul.
J.P. Morgan Chase said that third-quarter trading revenue is headed for a mid-single-digit decline because of the impact of the corporate tax overhaul on some of its markets businesses.
Chief Financial Officer Marianne Lake gave the guidance at the end of a Thursday presentation to investors in New York. Excluding the impact of the tax hit, which impacts certain holdings, trading revenue would still be down by a few percentage points, Lake said.
Fees from investment banking, the other main division in most Wall Street firms that includes advisory and capital markets services, will be about flat, Lake said. There is "some upside potential" to that estimate, she added.
The news from J.P. Morgan, the world's biggest Wall Street firm by revenue, is likely to be seen as a bearish signal for the performance of other investment banks in the third quarter. The New York-based bank has leading businesses across equities and fixed income trading and investment banking lines.