JPMorgan had a perfect year in trading in 2016.
The US bank hosting annual investor day on Tuesday, and Daniel Pinto, CEO of the corporate and investment bank at the company, delivered a presentation.
According to the slide below, the US bank didn’t have a single day of losses in the markets, and the markets business generated $80 million in revenues a day on average, up from $70 million in 2015. JPMorgan generated around $21 billion in fixed income and equity sales and trading revenues in 2016. Market volatility was broadly flat, meanwhile.
Pinto said in his presentation that the bank spends a lot of time discussing the appropriate level of risk it should run.
“We need to take the amount of risk necessary to provide liquidity in any kind of market conditions,” he said. “If we try to be smarter and take a punt to drive excess profitability, we will find ourselves in a bad place.”
The increase in daily markets revenue is a function of increased revenue across just about every business. Flow market-making revenues increased 21% from 2014 to 2016, while financing-related revenues increased 24%.
The bank is now among the top three in 31 business categories – a group of businesses that generate 83% of the revenue pool, according to JPMorgan. Equities have been a focus of late, with the bank including a slide in the presentation on growth across prime brokerage, cash equities, and equity derivatives.