JPMorgan, Citi, BofA Report Higher Q2 Costs as Trading Desks Set Records
Updated
Updated · Bloomberg · Jul 15
JPMorgan, Citi, BofA Report Higher Q2 Costs as Trading Desks Set Records
3 articles · Updated · Bloomberg · Jul 15
Summary
Rising second-quarter expenses emerged as the main offset to otherwise strong results at JPMorgan, Citigroup and Bank of America.
Record trading activity drove much of the increase, with banks facing higher compensation and operating costs tied to handling the surge in market volumes.
JPMorgan CFO Jeremy Barnum said the bank viewed those expenses as constructive because they reflected a strong start to the year rather than underlying weakness.
The pattern underscores how Wall Street trading windfalls can lift revenue and costs at the same time, especially when banks raise pay for busy trading staff.