JPMorgan had a perfect year in trading in 2016.
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JPMorgan's traders made $80 million a day in 2016 (JPM)
That's some serious money.
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The US bank hosting annual investor day on Tuesday, and Daniel Pinto, CEO of the corporate and investment bank at the company, delivered a presentation.
According to the slide below, the US bank didn't have a single day of losses in the markets, and the markets business generated $80 million in revenues a day on average, up from $70 million in 2015. JPMorgan generated around $21 billion in fixed income and equity sales and trading revenues in 2016. Market volatility was broadly flat, meanwhile.
Pinto said in his presentation that the bank spends a lot of time discussing the appropriate level of risk it should run.
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"We need to take the amount of risk necessary to provide liquidity in any kind of market conditions," he said. "If we try to be smarter and take a punt to drive excess profitability, we will find ourselves in a bad place."
The increase in daily markets revenue is a function of increased revenue across just about every business. Flow market-making revenues increased 21% from 2014 to 2016, while financing-related revenues increased 24%.
The bank is now among the top three in 31 business categories — a group of businesses that generate 83% of the revenue pool, according to JPMorgan. Equities have been a focus of late, with the bank including a slide in the presentation on growth across prime brokerage, cash equities, and equity derivatives.
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