The US investment bank's activity shows an increase from the previous quarter but a decrease year-on-year.

US investment bank J.P. Morgan’s structured product issuance dropped to 822 in the final quarter of 2020 from 1,098 products in Q4 19 and 1228 products during the first quarter of 2020.

However, the fourth quarter figure is an increase from the bank’s Q2 20 and Q3 20 values of 1013 (US$1.71 billion) and 812 (US$1.72 billion), respectively.

The bank led by Jamie Dimon (pictured) reported strong results in the fourth quarter of 2020, concluding a challenging year with record revenues.

During the last quarter of 2020, SRP notes that J.P. Morgan was the fourth most prolific issuer group in terms of sales volumes (US$1.9 billion), a drop from Q4 19’s number one slot with US$2.5 billion in sales.

Heading up the top issuer groups in terms of sales during Q4 20 is Morgan Stanley with US$2.6 billion (640 products), Citi with US$2.3 billion (661), and Goldman Sachs with US$2.1 billion (668).

This can be compared with Q4 19’s top contenders: J.P. Morgan, Barclays (US$2.3 billion/522), Goldman Sachs (US$1.9 billion/681), and Morgan Stanley (US$1.7 billion/542).

Net income was US$12.1 billion, up 42%, driven by credit reserve releases of US$2.9 billion, while net revenue stands at US$30.2 billion was up three percent.

The provision for credit losses was a net benefit of US$1.9 billion, compared to an expense of US$1.4 billion in the prior year due to reserve releases in the current quarter.

Net interest income totalled US$13.4 billion, a seven percent decrease, largely caused by the impact of lower interest rates as well as and a higher net interest income in CIB Markets.

Non-interest expense is valued at US$16.0 billion, a two percent drop, as a result of lower volume and revenue related expenses which were partially offset by higher investments in the business.

Equity markets revenue stands at US$2 billion, up 32%, predominantly driven by strong client activity in derivatives and cash equities.

SRP data shows that J.P. Morgan as an issuer group has 10,731 live structured products that are listed in the US market. The majority of the investments are wrapped as registered unlisted notes (US$16.8 billion/6,787), CDs (US$9.4 billion/3,852), and certificates (US$23m/49).

Popular underlyings include the S&P500, Russell 2000, JP Morgan Efficiente Plus DS 5 Index, Eurostoxx 50, Nasdaq 100, DJ Industrial Average Index, S&P Economic Cycle Rotator Index. 

Click here to view JP Morgan’s Q4 20 results.