NEW YORK ― JPMorgan Chase & Co., the largest U.S. lender by assets, will have “essentially flat” investment bank revenue this quarter excluding certain accounting adjustments, CEO Jamie Dimon wrote in an investor presentation.
The comparison is to this year’s third quarter, said Jennifer Zuccarelli, a spokeswoman for the bank. That period was the worst for trading and investment banking revenue at the biggest Wall Street firms since the depths of the financial crisis in 2008, excluding accounting gains.
The remarks show U.S. investment banks still face headwinds as corporations put off capital raises and investors sell riskier assets on concern the U.S. economy is weakening and Europe’s debt crisis may spread. New York-based JPMorgan’s private equity unit also expects to post a “modest loss” in this year’s fourth quarter, according to the presentation.
The company’s investment bank generated about $4.5 billion in revenue during the third quarter after backing out a $1.9 billion gain in debt-valuation adjustments. Dimon excluded that accounting effect in forecasting the unit’s revenue in a slide show to be delivered today at a conference hosted by Goldman Sachs Group Inc. in New York. A copy of the document was posted on JPMorgan’s website.
Revenue at the investment-banking unit has slid this year from $8.2 billion in the first quarter as concern that Greece would default and U.S. lawmakers would fail to raise the debt ceiling escalated in the third quarter. The firm told investors in October that the division will face similar market conditions for the rest of the year.