Fixed-income trading revenue fell 15 percent from a year earlier to $3.5 billion, beating the $3.14 billion average of analysts’ estimates compiled by Bloomberg. Equity-trading revenue dropped 10 percent to $1.2 billion on lower derivatives sales, matching the analysts’ estimates.
Goldman Sachs Group Inc. also posted a profit today that beat analysts’ estimates as fixed-income revenue fell less than many analysts predicted and investment-banking fees climbed. Net income at the New York-based firm rose 5 percent to $2.04 billion and revenue rose 6 percent to $9.13 billion.
JPMorgan’s total revenue of $25.4 billion surpassed the $23.9 billion average estimate of analysts with better-than- predicted results in trading and investment banking.
Investment banks may have to wait until 2016 before a significant improvement, Pinto told investors in May. Compensation also will decline if results fail to rebound, and the firm may eventually cut jobs, Lake said last month.
Wells Fargo & Co., the most valuable U.S. bank, posted second-quarter profit last week that rose 3.8 percent on lower credit costs, while Citigroup Inc. said yesterday that net income fell 96 percent as the company agreed to pay $7 billion to resolve a mortgage-related probe. Bank of America Corp., the second-biggest U.S. lender by assets, is scheduled to report results tomorrow.