The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

JPMorgan trading bonanza creates bonus dilemma

JPMorgan had a strong first quarter for trading revenue, but its disaster windfall creates a dilemma over future bonus payments for key staff.

JPMorgan-logo-interior-R-780

JPMorgan’s first-quarter trading revenues were robust, with a record total for its markets group of $7.2 billion, which was 32% higher than the same period in 2019.

But although fixed income revenue rose by 34% to $5 billion and equities by 28% to $2.2 billion, some of the gains may be fleeting and insufficient to balance an expected prolonged slump in deal-making fees.

JPMorgan also now faces a dilemma over how to compensate trading staff who are able to profit from the volatility in markets caused by the onset of the coronavirus crisis.

JPMorgan chief financial officer Jennifer Piepszak cautioned investors against assuming that markets revenues will remain strong enough to partly offset the lower deal flow and huge increase in credit reserves required by the downturn.

Jennifer_Piepszak-JPMorgan-160x186.png

Jennifer Piepszak, JPMorgan

“Low rates and economic activity may even be a headwind,” she said on the bank’s quarterly earnings call with analysts.

A strongly performing global markets division is nevertheless incorporated in the updated assumptions that JPMorgan provided on its expected overall revenues for 2020.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree