The US bank has reported record net revenue of US$38.3 billion despite a slowdown in markets revenue in the corporate & investment bank (CIB) for the first quarter of 2023.

J.P. Morgan’s revenues have increased by 25% year on year. Net income increased by 52% to US$12.6 billion year-on-year (YoY). Non-interest expense was US$20.1 billion, up 5%, driven by 'higher structural expense and continued investments in the business', according to the US bank's Q1 2023 financial results.

In the CIB [...] we focused on supporting clients as they navigated volatile market conditions - Jamie Dimon, CEO

'In the CIB, markets revenue fell four percent versus a very strong prior year, and we focused on supporting clients as they navigated volatile market conditions,' said Jamie Dimon (pictured), Chairman and CEO.

At CIB, net revenue was stable at US$13.6 billion while net income rose one percent to US$4.4 billion. Banking revenue was US$4.2 billion, down one percent. Markets & securities services revenue was US$9.4 billion, up one percent.

Non-interest expense rose two percent to US$7.5 billion, reflecting higher compensation, including headcount growth and wage inflation, largely offset by lower revenue-related compensation.

On the primary market, the bank advanced to the second largest issuer after Citigroup from the third spot in the league table in the US on the back of US$3.5 billion sales volume or 13.4% market share in Q1 23 which represents a stable level compared with the prior-year period.

Next in line were Morgan Stanley, Barclays and GS Finance with a respective market share of 15.4% and 13.4%.

By issuance, J.P. Morgan was also the top provider with 1,841 structured products launched in Q1 23, followed by Citigroup, which traded 1,243 products.

Approximately 70% of the structured products were distributed in-house with a total sales volume of US$2.4 billion.

The remaining were sold by UBS Financial Services (US$282.9m), First Trust Portfolios (US$243.8m) and Goldman Sachs Private Banking (US$239.5m), among a total of eight counterparties.

Outside the US, the bank was the number one provider of leveraged products listed in Germany.

Some 31,011 structured warrants were issued by J.P. Morgan in the first quarter of 2023, up 22.9% YoY (Q1 2022: 25,228). There were additionally 24,131 investment certificates, a surge from the prior-year period (Q1 2022: 74). 

In Hong Kong SAR, the US bank also listed 1,049 structured products comprising 815 callable bull bear contracts (CBBCs) and 234 derivative warrants (DWs) during the quarter.

SRP data registers two non-flow products traded by J.P. Morgan in Switzerland - 4M-BRC-ADEN SE-CHF-0.67% and 1.3Y-Autocall BRC-NKY/SPX/SX5E-EUR-2.01% - the products are linked to sing stocks of Adecco and basket of the S&P 500, Nikkei 225 and Eurostoxx 50, respectively.

In Taiwan, the 52 structured notes were issued on the bank's paper were distributed by Bank SinoPac (16), UBS (12), KGI (nine), Horizon Securities (eight) and Cathay Securities Investment Trust (seven). The underlying assets are unspecified share baskets while majority of the products have a tenor of less than one year.

Business lines

Meanwhile, the bank’s consumer & community banking (CCB) net revenues grew 35% to US$16.5 billion driven by banking & wealth management - net income skyrocketed by 80% to US$5.2 billion.

Commercial banking (CB) net revenue increased 46% to US$3.5 billion driven by higher deposit margins, which was partially offset by lower deposit-related fees; while asset & wealth management (AWM) saw its new revenue grow 11% to US$4.8 billion.

The AWM growth was driven by higher deposit margins on lower balances and a valuation gain of US$339 million on the firm’s initial investment in the asset management joint venture in China as a result of taking 100% ownership - AWM net income was up 36% to US$1.4 billion.

In addition, J.P. Morgan posted US$59.3 billion derivatives receivables and US$44.7 billion derivatives payables on consolidated balance sheet, which translated to a respective decrease of 20% and 23%.

Assets under management increased two percent to US$3 trillion and client assets rose by six percent to US$4.3 trillion driven by continued net inflows.

Click here to read J.P. Morgan's Q1 2023 presentation.