J.P. Morgan has been named the World’s Best Investment Bank at Euromoney’s annual industry awards. “J.P. Morgan had a spectacular 2023, and all the more so for the fact that the underlying climate in much of investment banking was far from spectacular,” said the magazine. High interest rates and an uncertain geopolitical backdrop ramped up the cost of financing and put the brakes on dealmaking. “It was a period where you could easily be wrong-footed, and so having J.P. Morgan there as an adviser, capital and liquidity provider was important,” Jason Sippel, Co-Head of Global Markets at J.P. Morgan, told Euromoney.
The business posted revenues of about $49 billion, down from pandemic highs. But this was significantly higher than in 2019 at 24% for the whole unit, 33% for the markets business and almost 60% for payments.
Among several headline-grabbing deals, the firm advised on the $98 billion acquisition of VMware by Broadcom, the $69 billion acquisition of Housing Development Finance Corp by HDFC Bank in India and chipmaker Arm’s $5 billion IPO.
In the firm’s Markets business, “the regional banking crisis in the U.S. offered an unusual source of new business as J.P. Morgan stepped in to fill vacuums left by constrained smaller institutions,” Euromoney said. Frontier markets in Africa and Latin America and the bank’s commodities business, and energy in particular, also helped to drive trading performance higher.
In addition, a differentiator for J.P. Morgan’s markets business remains its strength in the institutional space. “Our large market-making presence, balance sheet and at-scale product offerings across asset classes and geographies is what differentiates us the most,” said Pranav Thakur, Co-Head of Global Markets at J.P. Morgan. “Our other strength lies in our very strong relationships with the largest asset managers, sovereign wealth funds and hedge funds across the globe.”
“Our large market-making presence, balance sheet and at-scale product offerings across asset classes and geographies is what differentiates us the most. Our other strength lies in our very strong relationships with the largest asset managers, sovereign wealth funds and hedge funds across the globe.”
Pranav Thakur
Co-Head of Global Markets, J.P. Morgan
The hunger of the underdog
Examining the outlook for 2024, Euromoney said that the business has been bolstered by its integration of Commercial Banking. “The result is a division arguably better prepared for the future than before, and one more suited to the way in which the bank wants to approach its coverage of clients through their entire life cycle,” it noted. “It is clear that J.P. Morgan is setting great store by the closer integration of its commercial and investment banking activities — the belief that this will unlock the power of the bank’s network underpins much of the reorganization.”
Filippo Gori, Co-Head of Global Banking at J.P. Morgan, told the publication: “We are starting from the assumption that integrating the commercial bank with the broader banking organization brings an enormous opportunity, which is the power of incumbency.” J.P. Morgan is looking to turn more of the commercial bank’s 75,000 clients into users of the investment bank’s products and services. “When you bank a client from day one, when they ultimately come to do something that is transformational, the likelihood that they do it with you is elevated,” Gori said.
In addition, J.P. Morgan’s perennial strength remains its rejection of complacency, said the magazine. “It never stops looking to improve.” Doug Petno, Co-Head of Global Banking at J.P. Morgan, added: “We need the hunger you have as an underdog and really focus on delivering more value to our clients and empowering our teams, that’s what Filippo and I are really focused on.”
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