By Nupur Anand
NEW YORK (Reuters) -JPMorgan Chase boosted its outlook for investment banking revenue, forecasting a jump of 25% to 30% in the second quarter fueled by capital markets, a top executive said on Wednesday.
In May, the bank had predicted investment banking revenue would rise by a mid-teens percentage in the second quarter.
“Capital markets continues to be extremely robust and the overall franchise has improved,” said Troy Rohrbaugh, co-CEO of JPMorgan’s commercial and investment bank.
Trading revenue is expected to improve slightly, exceeding the bank’s earlier estimate for a percentage gain in the mid-single digits.
In the first quarter, JPMorgan’s trading revenue fell 5% to $8 billion, with revenue from fixed income, currency and commodities dropping 7%, while equities was flat.
Meanwhile, investment banking revenue gained 27% to $2 billion in the first quarter, driven by higher fees for debt and stock underwriting.
JPMorgan’s board has identified Rohrbaugh as a potential candidate to succeed CEO Jamie Dimon, who is expected to step down in less than five years.
The other contenders include Jennifer Piepszak, Co-CEO of commercial and investment banking, Marianne Lake, CEO of consumer and community banking, and Mary Erdoes, CEO of asset and wealth management.
(Reporting by Nupur Anand in New York and Manya Saini in Bengaluru, editing by Lananh Nguyen)
