JP Morgan Reports Quarterly Results on Thursday

October 12 00:00 2011

New York, October 12 ( – JP Morgan (NYSE: JPM) investment bank is expected to come up with the quarterly results on October 13 ahead of all competing banks such as Bank of America (NYSE: BA), Goldman Sachs (NYSE: GS) etc. However, it is expected that JP Morgan revenues might have taken a hit from the ensuing crisis.

Analysts expect that the biggest hit might have taken by the trading department. JP Morgan trading department is known for holding large amounts of treasuries and sovereign debt. This ensured that the bank had exposure to what could have possibly been some of the worst instruments to invest in this financial year. Most European sovereign debt has run into trouble. The American treasuries have also faced a downgrade and a fall in prices.

The advisory department in the global major may not be in very good shape either. The global turmoil has led to a considerable fall in the number of mergers and acquisitions. Hence, there is reduced demand for the banks services. Most companies have delayed their plans to raise capital from the markets. This weak quarter may be an indication of the upcoming strong quarters.

However, for now, one can expect JP Morgan’s revenues to be off by 30% to 40% in these two departments.