JP Morgan’s corporate and investment banking division sees YoY decline in Q3

Corporate and investment bank division - which includes investment banking and markets divisions - saw net revenue decline by 2% year-on-year, contributing to a 12% decline in net income for the business segment.

JP Morgan saw year-on-year declines across its corporate and investment banking (CIB) division during Q3 as markets and investment banking saw drops during the quarter.

The bank’s CIB division achieved a net revenue of $11.7 billion, down 2% year-on-year, which contributed to a 12% decline in net income for the division – $3.09 billion – compared to Q3 2022.

Within the unit, investment banking revenues declined by 6% year-on-year, totalling $1.6 billion in Q3 this year.

Markets revenues were down 3% compared to the same period last year, totalling $6.6 billion, however there was better news for fixed income markets revenues, where the bank achieved $4.5 billion, up 1% compared to Q3 2022.

JP Morgan attributed this appreciation to higher revenue in securitised products and credit, while highlighting that this was predominantly offset by lower revenue in currencies and emerging markets.

Elsewhere, equity markets revenue was $2.1 billion, down 10% year-on-year, which the bank stated was driven by lower revenue across products when compared with Q2 2022.

Despite this, JP Morgan achieved a net revenue of $40.7 billion as an overall business, up 21% year-on-year, which contributed to a net income of $13.2 billion this quarter, up a considerable 35% when compared to the same period last year.

“The firm delivered another quarter of solid results, generating net income of $13.2 billion and an ROTCE of 22%—although, we acknowledge that these results benefit from our over-earning on both net interest income and below normal credit costs, both of which will normalise over time,” said Jamie Dimon, chair and chief executive of JP Morgan Chase.

Despite declines in CIB revenues, Dimon added: “In CIB, we maintained our #1 Dealogic rank and gained IB market share YTD.”

Over the last quarter, JP Morgan has made a number of appointments within its artificial intelligence and equities division.

In July, Ash Booth joined JP Morgan as applied AI lead for markets operations after spending the last nine years with HSBC in data science roles. Elsewhere, Louis Barré was appointed as an equity derivatives trader at JP Morgan, joining from Barclays where he held the same role.