Revenue at JP Morgan Chase down 15% due to ‘low volatility’

JP Morgan Chase said revenue from its trading businesses has dropped 15 per cent so far in the second quarter from the same period a year ago because of low market volatility.

Fixed-income trading is down for the first two months of the period and equities are up “slightly”, the company’s chief financial officer Marianne Lake said on Wednesday at an investor conference in New York.

Ms Lake said she doesn’t see any particular reason those trends would change in June. Revenue from the world’s biggest investment banks is likely to drop in the second quarter, ending a rebound in fixed income, analysts at the New York-based firm said this month.

Brexit and Trump

Brexit and Donald Trump’s surprise election win fueled more bets on corporate bonds and the direction of interest rates over the past year, boosting Wall Street trading revenue.

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“Low rates, a more cautious outlook on rates, low volatility have led to low client flows and a generally quiet, subdued and challenging trading environment,” Ms Lake said.

“There’s not a lot to trade around right now, and so there’s not a lot of market themes.”

– Bloomberg