JPMorgan Finds Goldilocks Moment in First-Quarter Volatility

For JPMorgan Chase & Co., last quarter’s volatility appears to have been just right.

Revenue and profit for the first three months of 2018 rose to all-time highs, the bank said Friday, spurred by record results from stock trading. Revenue jumped at nine of the bank’s 11 largest business lines, according to a statement.

Trading Turnaround

JPMorgan’s trading revenue rose 13% in first quarter as volatility rose

Source: Company filings

JPMorgan Finds Goldilocks Moment in First-Quarter Volatility

Bankers who last year griped about the lack of volatility suddenly had the opposite complaint: Wild market swings were threatening to push wary investors to the sidelines. But all told, the first-quarter mix featured enough activity to boost revenue.

Traders benefited as interest rates rose and stocks at one point had their worst single-day plunge in seven years. The results bode well for the rest of Wall Street, including Citigroup Inc., which reports earnings later Friday.

When good volatility goes bad: Read more

Equities trading contributed $2.02 billion of revenue, a 26 percent gain that beat analysts’ estimates. Bond-trading revenue rose 8 percent in the quarter to $4.55 billion, while the bank said fixed-income revenue was flat excluding one-time gains.