(Adds details from filing and context)
By David Henry
NEW YORK May 2 JPMorgan Chase & Co
expects second-quarter revenue from bond and equity trading to
decline by about 20 percent from a year earlier, the biggest
U.S. bank by assets said on Friday.
The outlook is based on results so far this quarter which
"reflect a continued challenging environment and lower client
activity," JPMorgan said in a quarterly filing with the U.S.
Securities and Exchange Commission.
Almost all the major Wall Street investment banks reported
first-quarter declines in trading revenue from a year earlier.
Revenue from bond trading has persistently declined over the
past five years, raising concerns that the business has
permanently shrunk and is not just suffering a cyclical downturn
from the financial crisis.
Equity trading has been weak as well, but is not as big a
factor in the firms' overall revenue.
JPMorgan, with assets of $2.48 trillion, updated its 2014
outlook for the company and its businesses in the filing made
after the stock market closed on Friday.
It affirmed its previous 2014 estimate that adjusted
expenses will be below $59 billion, but said the final tab will
depend on performance-related compensation.
The company reduced its estimate of possible legal costs for
which it has not built reserves to $4.5 billion at the end of
March, from $5 billion three months before, the filing showed.
JPMorgan CEO Jamie Dimon last year agreed to pay some $20
billion to settle lawsuits and investigations in its effort to
reduce legal liabilities.
In after-market trading, JPMorgan shares slipped 1.2 percent
from Friday's close of $55.58.
(Reporting by David Henry and Lauren Tara LaCapra in New York;
Editing by Meredith Mazzilli and Richard Chang)