Monday, July 11, 2011

Citi, Goldman, BofA, JPMorgan Chase to report revenue dive

Only a few short months ago, JPMorgan Chase traders were on such a roll that they did not have a single losing day in the first quarter, according to the NY Times.

But when the bank reports its second-quarter results this week, that hot streak will have come to an end. Analysts expect JPMorgan to count about a 20 percent drop in its sales and trading revenues, reflecting a slowdown in investor activity and the dismal performance of its fixed-income and commodities groups.

Bank of America, Citigroup, Goldman Sachs, and Morgan Stanley are expected to report similar news. After helping prop up Wall Street during the financial crisis, core trading revenue is projected to drop, on average, by as much as 25 percent from the first quarter, according to Credit Suisse research. That will put further pressure on their growth prospects, which are already strained by stagnant loan growth and more stringent regulation. It is also prompting nearly every major Wall Street firm to contemplate another round of layoffs amid growing concerns that at least part of the weak results are permanent……

Read more http://www.boston.com/business/articles/2011/07/11/banks_expected_to_report_revenue_drop/

No comments:

Post a Comment