JPMorgan Chase Boosts Investment Banking Revenue Forecast for Q2, Eyes Leadership Changes

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JPMorgan Chase raises its Q2 investment banking revenue forecast by 25%-30% amid strong capital markets. Co-CEO Troy Rohrbaugh outlines leadership changes and potential successors to CEO Jamie Dimon.

JPMorgan Chase has increased its forecast for investment banking revenue, predicting a rise of 25% to 30% in the second quarter, driven by strong capital markets activity, according to a senior executive on Wednesday. This outlook is more optimistic than in May, when the bank projected a mid-teens percentage increase for the same period.

“Capital markets continue to be extremely robust and the overall franchise has improved,” said Troy Rohrbaugh, co-CEO of JPMorgan‘s commercial and investment bank.

The bank expects trading revenue to slightly exceed its previous estimate of a mid-single-digit percentage increase. In the first quarter, trading revenue dropped 5% to $8 billion, with fixed income, currency, and commodities revenue falling 7%, while equities remained flat. Investment banking revenue, however, surged 27% to $2 billion, fueled by higher fees from debt and stock underwriting.

Rohrbaugh is one of the potential successors to CEO Jamie Dimon, who is anticipated to step down within five years. Other candidates include Jennifer Piepszak, co-CEO of commercial and investment banking, Marianne Lake, CEO of consumer and community banking, and Mary Erdoes, CEO of asset and wealth management.

Rohrbaugh discussed recent leadership changes in the bank’s Wall Street division, including his promotion in January to co-lead the division with Piepszak. He emphasized JPMorgan’s collaborative approach to leadership, stating, “A lot of firms when they create co-heads, it turns into a cage match — that’s definitely not how JPMorgan works.”

Rohrbaugh typically focuses on markets while Piepszak handles investment banking, and they jointly oversee payments. “That said, if I’m on a plane, then everyone in the markets will call Jenn (Piepszak) and she’ll make the decision,” Rohrbaugh said. “And Jamie will hold us jointly responsible for the outcome and anything that is truly strategic … Jamie can get you anywhere.”

Reflecting on his early career trading currency options, Rohrbaugh predicted that the Federal Reserve would delay interest rate cuts beyond market expectations. The Fed had maintained steady interest rates earlier on Wednesday and hinted that rate cuts might not begin until December.

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