JPMorgan Expects Strong Q3 Investment Banking Fees Amid Broad-Based Strength

JPMorgan Chase & Co.'s Commercial & Investment Bank is expecting strong third-quarter investment banking fees and markets revenue, according to co-president Doug Petno. The bank sees broad-based strength across its investment banking products and geographies.

Petno said the bank expects a mid-to-high-teens percentage increase in investment banking fees for the quarter, assuming no major market disruption. Markets revenue is also expected to rise by a mid-to-high teens percentage, with strength across Fixed Income, Currencies and Commodities (FICC) and equities.

Petno mentioned that M&A activity is as strong as JPMorgan has seen in some time and described management and board confidence as strong. He noted that the bank sees very little 'flashing yellow' or warning signs across the US economy, but does see some weakness among companies exposed to lower-income consumers.

JPMorgan remains cautious on private credit, particularly how weaker players could perform during a downturn. The bank is also being selective about financing AI investment and maintaining its underwriting discipline.