JPMorgan Sees Mid-to-High Teens Growth in Investment Banking Fees and Trading Revenue

JPMorgan Chase expects its investment banking fees and trading revenue to see significant growth in the third quarter, according to co-President Doug Petno. Speaking at the Barclays Global Financial Services Conference, Petno said these areas would rise by 'mid-to-high teens' percentage.

Petno highlighted robust deal activity, citing a strong pipeline and broad-based strength in investment banking and markets businesses. He attributed this to management and board confidence driving M&A activity, which is at its highest level in some time.

JPMorgan's second-quarter investment banking fees jumped 30% from the same period last year, while markets revenue surged 35%. Petno emphasized that clients are resilient and seeing through market volatility and uncertainty, reflecting the diversity and strength of the US economy.

When asked about potential acquisitions, Petno stated that JPMorgan is constantly in the market but requires 'very high' valuation for inorganic opportunities. The bank is ready to opportunistically acquire if it makes sense at the right price, he added.

In a related note, co-President Troy Rohrbaugh and Petno were previously co-CEOs of the commercial and investment bank at JPMorgan. Petno downplayed any speculation about Jamie Dimon stepping back, saying that the CEO is active as ever and out in the market all the time.