In its 10-Q filing [via Bloomberg] for the first quarter with the Securities and Exchange Commission, JPMorgan (JPM) projects 2Q’14 fixed-income and equities trading revenue could be down by about 20% year-over-year.
The world’s biggest investment bank by revenue points to a “a continued challenging environment and lower client activity levels”, as the reasons for the drop.
“Based on Markets revenue results to date, which reflect a continued challenging environment and lower client activity levels, expect 2Q14 Markets revenue to be down approximately 20%+/- versus 2Q13. The Markets revenue actual results will depend heavily on performance throughout the remainder of the quarter, which can be volatile,” the filing said.
In the filing, JPMorgan also underscores a number of linked factors, including “strength of consumers and businesses, U.S. housing prices, unemployment rate, implied market interest rates, financial market levels and activity, the geopolitical environment, the competitive environment, client activity levels, and regulatory and legislative developments in the U.S. and other countries” affecting the performance of the firm and its lines of business each to a different degree.
According to Bloomberg, a 20% markets revenue deterioration would mark the bank’s worst first half in trading since the financial crisis.
JPM shares closed at $55.58 on Friday.