Banks Tumble After JPM Warns On Q2 Revenue

One quarter after banks enjoyed a record boost to their equity/derivative trading revenue from the February 5 "volocaust", things are looking far more grim for Q2. Consider that one year after on May 31, 2017 JPM made the following warning:

  • JPMORGAN 2Q MARKET REVENUE HAS BEEN DOWN ABOUT 15 PERCENT FROM YEAR EARLIER, CFO SAYS

This morning JPM had news that were almost as unpleasant, when investment bank chief Daniel Pinto said that second-quarter markets revenue would be flat compared with a year earlier...

  • JPMORGAN MARKETS REV WILL BE `FLAT' Y/Y, PINTO SAYS

... and by implication, also 15% down from 2016.

Furthermore, speaking on Tuesday at an investor conference, Pinto said that the drag of several one-off items is reducing the benefit of "mid-single digit" percentage improvements in core trading business, such as in rates, credit, and equities. In other words, the bank is set for another overall revenue decline, which the collapse in NIM virtually assures that interest income will be another fiasco.

And while markets already had their hands full with negative news out of Italy, US banks extended losses after the JPM warning with most big bank shares extending losses, sliding between down ~3-5 pct, and the S&P Financial sector tumbling to the lowest in almost a month. 

And while it may get far worse before it gets better, especially if the political chaos in Italy continues, both Goldman and Citi are already suffering from the worst start to a year since 2011.

Comments

Dilluminati Tue, 05/29/2018 - 15:05 Permalink

Toss Guenther Oettinger in the volcano for apologizing for telling the truth..

get back to JBTFD

I think the apology a greater insult post candor on his contempt for the little people

toss em in the volcano

Blankfuck Tue, 05/29/2018 - 15:06 Permalink

Attention! Attention! FED RESERVISTS COME FORWARD WITH YOUR PONZI PRESSES IMMEDIATELY! 

YO, PONZI PIMPS, HELLO? 

WE NEED PONZI MONEY FOR THESE BANKSTERS!

HURRY! HURRY! THEY NEED THE MONEY FOR THEIR YACHTS, MULTIPLE MANSIONS, PLANES, VACATION HOMES, MOR MOR!

Dilluminati Tue, 05/29/2018 - 15:21 Permalink

I honestly think the big story of the day was: 

http://www.breitbart.com/big-government/2018/05/29/38-shot-8-killed-in-…

38 Shot, 8 Fatally, in Gun-Controlled Chicago over Memorial Day Weekend

hmmm sounds like they left out the stabbings to not contend with London

 

In fact, “Chicago still has tallied nearly as many homicides thus far in 2018 as New York City (106) and Los Angeles (92) combined.”

This violence is occurring in a city where gun control has been the go-to solution for crime for decades. The city banned handgun ownership in 1982, only to see the murder rate skyrocket. The Chicago Police Department reported there were 850 homicides in 1993, 930 homicides in 1994, 921 homicides in 1991, and a startling 940 homicides in 1992. Yet the city’s leaders refused to lift the handgun ban, doing so only when the ban was struck down by the Supreme Court of the United States in 2010.