In an already wonky quarter, JPMorgan reported a $143 million loss in its equities trading department from one single client.
- In an already wonky quarter, JPMorgan reported taking a $143 million loss in its equities trading department from one single client.
- The department had strong equities performance apart from that one client loss.
After accounting for effects from tax reform, JPMorgan posted a solid quarter, announcing earnings of $1.69 share Friday.
Its trading business, expectedly, declined — fixed income revenues dropped 27% after including effects from tax reform.
But it was the equities team that posted the most interesting figure: It took a $143 million loss from a single client.
Apart from that hit, the equities business actually had a solid performance. Here's what JPMorgan said about the peculier loss in its earnings presentation (emphasis ours):
“Equity Markets revenue was flat compared to a strong prior year and included the impact of a mark-to market loss of $143 million on a margin loan to a single client. Excluding the mark-to-market loss, Equity Markets revenue was up 12%, driven by strength in Prime Services, Cash Equities and corporate derivatives.”
We expect to hear more after JPMorgan reports earnings to investors and takes their questions.