JPMorgan's third quarter results are out. You can see them here, or maybe here. Jamie Dimon will soon be talking them through in a conference call.
JPMorgan' results have been heavily anticipated ever since it became apparent that JPMorgan was facing some huge litigation charges (as a result of which 45% of you recently told us you don't think it's safe to work there any more). So, now that we know how well JPM actually performed in the first nine months of the year, this is what we conclude about your chances of finding a job there - or at any other banks operating in the same markets.
1. Legal jobs are going to be super-plentiful
Today, JPMorgan posted its first ever quarterly loss under Jamie Dimon following a massive $9.15bn in pre-tax legal expenses.
"Unfortunately, the quarter was marred by large legal expense," said Jamie Dimon. "While we expect our litigation costs should abate and normalize over time, they may continue to be volatile over the next several quarters.”
Now is cleary the time to work in a law firm specializing in financial services regulation, especially if it works with JPMorgan. Equally, JPMorgan has itself been hiring thousands of legal and control staff.
2. Asset management hiring is especially hot
We've flagged all the hiring in asset management before. We've also pointed out JPMorgan's big asset management hiring plans. It recently recruited the BBC's economics editor, Stephanie Flanders, on a package allegedly worth £400k a year.
Flanders isn't the only one to have been recruited into JPM's asset management arm. Today's results reveal that the bank has added 1,858 people to its asset management business over the past year. By comparison, JPM's corporate and investment bank has increased its headcount by...217.
3. M&A jobs are not actually looking that great
So what if the M&A pipeline is huge? M&A revenues are actually looking a little sketchy. At JPMorgan they fell by 14% over the past nine months compared to the same period of 2012.
4. ECM jobs are where it's at
Revenue growth dictates that there should be a lot of equity capital markets hiring to come. JPM's ECM revenues rose 40% in the first nine months of 2013. That's a big increase when teams are already thinly spread.
5. Forget trying to find a job in mortgage banking
JPMorgan's already been laying off mortgage bankers and has big problems with claims of mortgage fraud. Today, the bank said mortgage applications (in the U.S.) were down 45% and reiterated that it's cutting 11,000 mortgage jobs in total.
6. Don't push for big investment banking pay - compensation there is still falling
JPMorgan has cut the compensation ratio at its corporate and investment bank to just 28% - down from 33% last year. Pay is still on the way down. In the first nine months of the year, average compensation per head in the business fell 5% to $166k.*
7. Fixed income sales and trading isn't totally a lost cause
Despite all the dire predictions about fixed income revenues in the third quarter, JPMorgan seems to have avoided the worst. Fixed income revenues at the bank were down only 8% year-on-year and were flat in the first nine months as a whole. Then again, JPMorgan's fixed income trading business had a bad third quarter in 2012, so the comparators aren't necessarily great. Nor are flat year-on-year revenues an indication that hiring is likely.
8. Asia Pac is looking good in corporate and investment banking, Latin America isn't
Asia Pac revenues at JPMorgan's corporate and investment bank rose 22% in the first nine months of the year. Latin American revenues fell by 11%. Where would you rather look for a job?
9. JPMorgan has been doing some wild and irrational hiring in its 'corporate/private equity' business
If you want to work for JPMorgan's private equity arm or its treasury office, or its chief investment office (remember that?), now's the time. Over the past nine months, the bank has increased headcount here by 2,266 people. This is despite making a net loss of nearly $7bn over the same period .
10. If you want big pay and a job at JPMorgan, don't go for the corporate/private equity business, go for asset management
Average pay in JPMorgan's corporate/private equity business was a mere $89k in the first nine months of the year. Average pay in JPMorgan's asset management business was $177k. Asset management seems to be where it's at.
*Pay per head in the corporate and investment bank is depressed by the presence of many thousands of commercial bankers who are paid less people in the investment bank.