By Nupur Anand
NEW YORK (Reuters) -JPMorgan Chase raised its outlook for investment banking revenue, forecasting a 25% to 30% rise in the second quarter driven by capital markets, a top executive said on Wednesday.
In May, the bank had predicted that investment banking revenue would rise by about 10 percent in the second quarter.
“The capital markets remain extremely strong and the overall franchise has improved,” said Troy Rohrbaugh, co-CEO of JPMorgan's commercial and investment bank.
Operating income is expected to improve slightly, beating the bank's previous estimate of a mid-single percentage gain.
In the first quarter, JPMorgan's trading revenue fell 5% to $8 billion, and fixed income, foreign exchange and commodities revenue fell 7%, while stocks were flat.
Meanwhile, investment banking revenue rose 27% to $2 billion in the first quarter, driven by higher fees from debt and equity underwriting.
JPMorgan's board of directors has identified Rohrbaugh as a potential candidate to succeed CEO Jamie Dimon, who is expected to step down in less than five years.
The other contenders include Jennifer Piepszak, co-CEO of commercial and investment banking, Marianne Lake, CEO of consumer and community banking, and Mary Erdoes, CEO of asset and wealth management.
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