JPMorgan Expects Investment Banking Fees to Soar in Q3

JPMorgan Chase is expecting strong growth in investment banking fees and trading revenue in the third quarter, according to co-President Doug Petno. Speaking at the Barclays Global Financial Services Conference on Tuesday, Petno stated that investment banking fees and markets revenue are expected to be up 'mid-to-high teens' percentage-wise.

Deal activity is robust, with JPMorgan seeing broad-based strength in both investment banking and markets businesses, Petno said. He added that the bank's clients are resilient and not letting market volatility deter them, reflecting the diversity and strength of the U.S. economy.

JPMorgan's investment banking fees jumped 30% in the second quarter from a year ago, while markets revenue surged 35%. When asked about potential acquisitions, Petno said that JPMorgan is constantly on the lookout for opportunities but has a 'very high' bar for inorganic growth.

Despite rumors of Jamie Dimon stepping back, Petno clarified that the CEO is not leaving and remains active in the market. The bank's recent elevation of insiders Petno and Troy Rohrbaugh to co-presidents as part of a succession plan has sparked some speculation about Dimon's future plans.