Bond trading slump clouds JPMorgan earnings beat

JPMorgan Chase & Co’s (JPM.N) quarterly profit and revenue easily trumped Wall Street’s expectations on Thursday, but a slump in bond trading clouded gains from loan growth and higher interest rates.

Financial market trading was again a dark spot for the bank with revenue from bond trading diving 27 percent compared with a year earlier, when it was boosted by higher market activity due to Brexit and the U.S. election. Equity markets revenue was also down 4 percent.

Shares of JPMorgan, which kicked off earnings for banks in the United States, dipped 0.66 percent to $96.20 in premarket trading.

“The results were solid but not exceptional,” said Morningstar analyst Jim Sinegal.

Several large U.S. banks had warned last month that revenue from trading stocks and bonds would take a hit in the third quarter.

Source: Reuters

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