JPMorgan has reported third-quarter earnings, which missed analyst estimates.
On a conference call following the earnings release, Chief Financial Officer Marianne Lake made a dark prediction for the fourth quarter.
“If markets remain at these levels, Q4 revenue will also be lower” than guidance, Lake said.
The bank’s markets revenues of $4.3 billion were down 6% year-on-year. Fixed income was down 11% year-on-year.
That reflected lower revenue in commodities and continued weakness in credit, which were partially offset by strength in currencies and emerging markets, according to the bank. It also reflected higher interest costs on higher long-term debt.
Lake said the “slow quarter in credit” was a result of “challenging market conditions” in the third quarter that kept clients “on the sidelines.”
Equity-markets revenues, however, were up $1.4 billion, or 9%, with strong performance in derivatives and cash, driven by higher client volumes.
As reported by Business Insider