'Investors are eagerly looking for opportunities': Here are the key points from the memo JPMorgan's investment bank chief just sent to staff

JPMorgan Chase

The CEO of JPMorgan’s corporate and investment bank sent a note out to employees on Friday to highlight the firm’s first-quarter earnings report.

JPMorgan on Friday morning posted earnings of $US2.37 a share, ahead of analyst expectations of $US2.28.

The corporate and investment banking business posted a 23% gain in net income, up to $US4 billion, on revenue of $US10.5 billion. Those results included around $US500 million in gains due to an accounting change, and about $US150 million in adjustments due to lower taxes. On an underlying basis, the business generated net income of $US3.7 billion in net income on revenue of $US10.1 billion.

Daniel Pinto, CEO of JPMorgan’s corporate and investment bank and group co-president, said in a memo to staff after the results:

  • “This was a strong quarter, particularly for our Equities business, which had record revenue. Our overall performance reflects a relatively healthy business environment. The pipeline of client activity across M&A and capital markets is robust, and investors are eagerly looking for opportunities amid the bouts of volatility.”
  • “In Investment Banking, we ranked #1 in global fees, driven by advisory fees, which were up 15% year-over- year. We advised on more announced deals and closed more transactions than any other bank during the quarter.”
  • “Treasury Services continued to see steady growth as revenue increased 14% year-over- year. An increase in operating deposits and rising interest rates continue to benefit the business. Most exciting, though, is that we are continuously rolling out best-in- class payment technologies, giving clients better, simpler ways to manage their own balance sheets.”
  • “Volatile markets drove client activity in Equity Derivatives and we saw continued strength in Prime Services, while gaining share in Cash Equities.”
  • “Underlying results in Fixed Income Markets were also solid this quarter with revenue of $US4.2 billion. Compared to last year’s outperformance, our Rates and Spread Markets businesses reverted to more normalized levels of activity this quarter. Emerging Markets had a strong showing and after a challenging quarter last year, Commodities also returned to more normalized levels.”

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