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Too early to say on HQ move says JP Morgan

Published 14/07/2016

JP Morgan drove home a better-than-expected set of results
JP Morgan drove home a better-than-expected set of results

JP Morgan said it was "too early to say" whether it would shift its European headquarters out of London as it drove home a better-than-expected set of results.

The US banking giant saw second-quarter earnings drop to 5.67 billion US dollars (£ 4.2 billion) , down from a profit of 5.78 billion US dollars (£4.3 billion) over the same period last year.

But the lender hit one dollar and 55 cents (£1.16) on a per share basis, compared with one dollar and 54 cents (£1.16) the year before, with analysts pencilling in one dollar and 42 cents per share (£1.07).

Speaking about the bank's future in the City of London, Marianne Lake, the bank's chief financial officer, said: "We would like to believe that we would continue to have our European franchise headquartered in London, but it's too early to say."

The comments came after chief executive Jamie Dimon warned last week that the bank could shift thousands of j obs out of the UK if the country loses the right to sell financial services to the European Union following the Brexit vote.

Speaking to Italian newspaper Il Sole 24 Ore, Mr Dimon said if it still had the passporting rights following Britain's Brexit negotiations, it may not make any changes to its current operations in the UK, where it employs 16,000 people.

Updating the market on its second-quarter performance, it said trading revenue within its investment banking arm stepped up 13% to 6.5 billion US dollars (£4.8 billion) compared with last year, while f ixed income trading revenue soared 35%.

Ms Lake said the rise in trading revenue was partly driven by oil prices stabilising and bond prices rising sharply in the quarter.

Net revenue rose to 25.21 billion US dollars (£18.9 billion) from 24.53 billion US dollars (£18.4 billion) in the same period a year earlier.

Mr Dimon added: "JPMorgan Chase continued to perform well in all of our major businesses."

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