A rebound in the capital markets lifted revenue at JPMorgan Chase in a quarter rocked by Brexit. Fixed income trading was particularly strong. Fred Katayama reports.
Strong results at JPMorgan Chase in a quarter rocked by Britain's vote to leave the European Union. A rebound in the capital markets lifted revenue. Trading revenue at the U.S.' largest bank grew 23 percent. Currencies and emerging market bonds fueled fixed income trading in particular. And mortgage and commercial real estate helped boost loan growth by 11 percent.
The bank manged to cut costs, but profit slipped.
Investors liked what they saw, driving up shares in early trading.
Evercore ISI analyst Glenn Schorr said, "JPMorgan continues to execute really well in a tough environment."
While the profit and revenue were stronger than Wall Street had expected, lending margins could remain under pressure, for Britain's vote to quit the European Union has raised doubt over the likelihood of an interest rate hike anytime soon.