JPMorgan: Shifting Profits, Shifting Salaries
JPMorgan (NYSE:JPM) may have seen some nice expansion of its business in several areas over the past year, but investment banking was not one of them, and salaries in the division reflect the setbacks.
While the world may not have ended, 2012 was far from a good year for JPMorgan’s investment banking unit. Global deals for the unit fell 13 percent to $2.67 trillion last year, and net income dropped 15 percent to $5.2 billion in the first 9 months of 2012. Revenue from fees dropped 17 percent for mergers and acquisitions and 13 percent for equity underwriting. JPMorgan had then merged the investment bank with the corporate bank and treasury services division.
Additional losses came from JPMorgan’s corporate division and chief investment office, which lost $2.1 billion and $6.2 billion, respectively. Part of the corporate division had been responsible for the company’s record trading setback last year. Derivatives were the source of the loss in the chief investment office, and most of the traders and managers in the section have been fired or have quit.
Not all other divisions at JPMorgan performed so poorly. Debt deals grew in the company’s favor, swelling 13 percent to $3.3 billion for the year, and fixed-income trading grew 4.3 percent to $15.4 billion. Net income for the asset-management division was also up 7 percent, reaching $1.7 billion…