Finance

JPMorgan lost $143 million on a single trading client in the fourth quarter (JPM)

James Dimon, Chairman of the Board and Chief Executive Officer of JPMorgan Chase & Co, attends the Paris Europlace International Financial Forum in Paris, France, July 11, 2017. REUTERS/Gonzalo FuentesJames Dimon, Chairman of the Board and CEO of JPMorgan Chase & Co, attends the Paris Europlace International Financial Forum in ParisThomson Reuters

  • 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.

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