JP Morgan declares 11% fall in fixed income revenue

Reduction in fixed income revenue comes despite "another record year" for the bank.


JP Morgan has confirmed fixed income revenues fell 11% in 2015, from $14.1 billion in 2014 to $12.6 billion last year.

The division’s revenue from the final quarter of the year stood at $2.57 billion, three per cent lower than the $2.65 generated during the same three-month period in 2014.

In its report to investors, JP Morgan said that when revenues were adjusted by taking into account the sale of its physical commodities business, fixed income trading would actually only be down by 1 per cent, however.

News of the decrease in revenue at the bank comes after reports earlier today that Goldman Sachs was looking to cut back the size of its fixed income team.

The bank’s Securities Services business also saw a drop in revenue, with revenue for the full year ending December 2015 at $3.78 billion, down 13% from the $4.35 declared for the same period last year.

Despite the performances of these two divisions, the bank reported a better quarterly profit than analysts had expected and it enjoyed strong growth in revenue in its equities team.

Revenue for the full year stood at $5.69 billion for 2015, up 13% from the $5.04 billion declared the previous year.

Jamie Dimon, chairman and CEO of the bank, said 2015 was another record year for the bank in net income and EPS terms.

He said: “Importantly we exceeded on all of our commitments – balance sheet optimisation, capital…and expense. The firm is getting safer and stronger each year.”

Total net earnings for 2015 were down 3 per cent on 2015 at $33.5 billion, down from $34.6 billion in 2014.