JP Morgan Expects 4th-Quarter Trading Down Around 15% From 3rd Quarter

J.P. Morgan Chase & Co.'s trading results for the fourth quarter are expected to fall around 15% from the third quarter, similar to its year-ago results, according to a senior executive at the firm.

Daniel Pinto, J.P. Morgan's corporate and investment bank chief, said at an investor conference Tuesday "more or less we are in that zip code" as the bank's 15% drop in the same period last year.

Mr. Pinto said J.P. Morgan's rates business has been strong this year. Its credit business has faced a more challenging year while its equities business overall is flat year over year. He added that there were some reductions in client trading volumes in the last quarter.

Mr. Pinto also shed light on October trading compared to November trading so far. He said October was "a bit more challenging" with lower client volumes, but said there was some growth in volumes in November.

In the bank's most recent quarterly filing, it said markets revenue -- which includes revenue from its large fixed-income arm as well as from its equities unit -- "is expected to decline sequentially due to seasonal trends."

Last year, J.P. Morgan's fourth-quarter markets revenue dropped 13% from a year earlier to $3.64 billion. Prior to those earnings, Chief Financial Officer Marianne Lake said J.P. Morgan's trading revenue would be down in the high-teens as the bank suffered from the loss of its physical commodities business and slow credit-trading conditions, among other things.

Since it has been about a year since the announcement of the sale of J.P. Morgan's physical commodities business, that is not expected to further factor into results.

Mr. Pinto also said that he expects interest rates to rise in December, but he doesn't expect that to impact J.P. Morgan's trading very much.

Write to Emily Glazer at [e-mail]

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(END) Dow Jones Newswires

November 17, 2015 15:05 ET (20:05 GMT)

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