JPMorgan (JPM) Sees Investment Banking Holding Up Amid Market Uncertainty

JPMorgan Chase & Co. (NYSE:JPM) is included among the Goldman Sachs Dividend Stocks: Top 14 Stock Picks.

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On February 23, JPMorgan Chase & Co. (NYSE:JPM) said it expects strong growth in both investment banking fees and markets revenue during the first quarter. This outlook helped ease concerns that the recent sell-off in equity markets could weaken deal activity. In recent weeks, investors had grown cautious. The decline in software and technology stocks, driven by fears around AI disruption, raised questions about the strength of mergers and acquisitions and IPO pipelines. Many expected companies to delay deals in an uncertain market environment.

JPMorgan said those concerns may be overstated. The bank expects investment banking fees to increase by a mid-teens percentage, with the possibility of reaching the high teens in the first quarter. Doug Petno, Co-CEO of JPMorgan’s commercial and investment bank, made the following statement:

“We started the year strong. Pipelines were very good, and it was broad based. The one thing I will say in M&A (is that) there are powerful strategic drivers.”

The bank also expects market revenue to grow by a mid-teens percentage this quarter. Periods of market volatility often lead to higher trading activity. Investors adjust portfolios, hedge risks, and act on short-term opportunities. This activity typically supports fee growth for banks.JPMorgan kept its annual adjusted expense forecast unchanged at $105 billion. The bank continues to invest in branch modernization and AI technology as part of its long-term strategy. Technology spending is expected to reach $19.8 billion in 2026. This represents a 10% increase compared to the prior year.

Doug Petno, Co-CEO of JPMorgan’s commercial and investment bank. operates as a financial holding company. Its business includes investment banking, consumer and small business financial services, commercial banking, transaction processing, and asset management.

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