J.P. Morgan has revealed that its markets and securities services revenue was $7.5 billion for Q3 2021, which marks a decrease of 4 per cent compared to Q3 2020.
Securities services revenue was $1.1 billion, up 9 per cent. J.P. Morgan says this was largely driven by fee growth.
Markets revenue was $6.3 billion, down 5 per cent, while fixed income markets revenue was $3.7 billion, down 20 per cent.
According to the bank, this was driven by lower revenue in commodities, rates and spread products as compared with a favorable performance in the prior year.
The current quarter also included an adjustment to liquidity assumptions in the derivatives portfolio. Equity markets revenue was $2.6 billion, up 30 per cent, driven by strong performance across products.
Noninterest expense was $5.9 billion, relatively flat to the prior year, as higher structural expense, volume- and revenue-related expense and investments, including technology and front office hires, were offset by lower legal expense.
Further highlights from the Q3 2021 results showed reported revenue of $29.6 billion and managed revenue of $30.4 billion.
Meanwhile, assets under management were $3 trillion, up 17 per cent, driven by higher market levels, as well as cumulative net inflows.
Commenting on the financial results, Jamie Dimon, chairman and CEO, says: “J.P. Morgan Chase delivered strong results as the economy continues to show good growth — despite the dampening effect of the Delta variant and supply chain disruptions.”
He highlighted: “We are making important investments, including strategic, add-on acquisitions that will drive our firm's future prospects and position it to grow and prosper for decades. This quarter, we became the first bank to have branches in all of the lower 48 states, allowing us to serve more households, businesses and communities across the country."
“We are more than halfway through our plan to open 400 branches in new markets by the end of 2022, with approximately 30 per cent of these branches in low to-moderate income communities.”
Dimon concluded: “We are also expanding our retail presence internationally, most recently launching our digital retail bank in the UK. We remain committed to using our resources to drive inclusive solutions to support our employees, customers, clients and the communities we serve.”
J.P. Morgan’s markets and securities services revenue totalled $10.1 billion for Q1 2021, which marked an increase of 37 per cent compared to its Q1 2020 figure of $7.3 billion.
Elsewhere, Citi’s securities services revenues of $692 millionhave increased 10 per cent on a reported basis and 9 per cent in constant dollars for Q3 2021.
