Investment Banking Fees Expected to Drop 50% at JPMorgan Chase

Third-quarter investment banking fees at JPMorgan Chase will be half what they were at the same time last year, for the second period in a row, the bank reported.

Of course, the third quarter of 2021 raked in the most fees ever, and the year in total set records.

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Mergers and stock sales have declined as the market has fallen recently. In response, JPMorgan says it may adjust compensation rather than lay off employees, as rival Goldman Sachs Group has said it may do.

JPMorgan’s bankers are too important to the long-term client relationship, its investment banking head Daniel Pinto said at a conference hosted by Barclays, The Wall Street Journal reported. He described the downturn as a short-term decline.

Pinto added that Federal Reserve rate hike volatility had helped trading volumes for fixed-income securities and offset slides in equity trading. He also said he believed that market revenue would increase by about 5% from a year ago.

Investment banking fees at Citigroup will likely drop by 50% as well, and market revenue is expected to be in the mid-to-high single digits, the bank’s Chief Financial Officer Mark Mason told The Wall Street Journal.