JPMorgan registers decline in Markets & Securities Services revenue in Q3 2021

JPMorgan Chase & Co. yesterday posted its financial results for the third quarter of 2021, with Markets & Securities Services revenue marking a slight decrease from the year-ago quarter.

Markets & Securities Services revenue was $7.5 billion, down 4% from the equivalent period a year earlier. The result for the third quarter of 2021 was also lower than the $8.1 billion registered in the preceding quarter.

In the third quarter of 2021, Markets revenue was $6.3 billion, down 5% from the year-ago period. Fixed Income Markets revenue was $3.7 billion, down 20%, predominantly driven by lower revenue in Commodities, Rates and Spread products as compared with a favorable performance in the prior year. The current quarter also included an adjustment to liquidity assumptions in the derivatives portfolio.

Equity Markets revenue was $2.6 billion, up 30%, driven by strong performance across products.

Securities Services revenue was $1.1 billion, up 9%, largely driven by fee growth.

Across all segments, net income for the third quarter of 2021 was $11.7 billion, up $2.2 billion from a year earlier, largely driven by credit reserve releases of $2.1 billion compared to credit reserve releases of $569 million in the prior year. The current quarter included an income tax benefit of $566 million related to finalizing the Firms 2020 U.S. federal tax return.

Net revenue was $30.4 billion, up 2% from the year-ago period. Noninterest revenue was $17.3 billion, up 3%, predominantly driven by higher Investment Banking fees in CIB and management fees in AWM, predominantly offset by net investment securities losses in Corporate compared to net gains in the prior year and lower revenue in Home Lending.

Net interest income was $13.2 billion, up 1%, driven by balance sheet growth and higher rates, primarily offset by change in balance sheet mix and lower net interest income in CIB Markets.

Noninterest expense was $17.1 billion, up 1%, driven by continued investments in the business including marketing and technology, and higher volume- and revenue-related expense, predominantly offset by lower legal expense and structural expense. The prior year included an impairment on a legacy investment.

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