JPMorgan Chase, the largest U.S. bank by assets, beat second quarter earnings estimates even after a big legal expense.
When you delve into the numbers, the results really aren’t all that pretty.
In the supplements packet, there are two slides that encapsulate the nightmare that Wall Street is living through right now.
On Wall Street, folks have been anticipating weaker trading. Desks at the banks have been quiet due to low volatility and low volume in the market.
This slide from the Corporate & Investment bank demonstrates how bad trading was in Q2. Markets revenue for Q2 was down 14% year-over-year. It could have been worse, though. Back in May, the bank warned that it’s market revenue for the second quarter could be down 20% because of the “challenging environment.”
The next slide shows the mortgage banking business in the Consumer and Community banking division. The bank said Mortgage Production was 74% lower year-over-year. Also, headcount in that division is down about 13,000.