FILE PHOTO: JPMorgan Chase Bank is seen in New York City, U.S., March 21, 2023. REUTERS/Caitlin Ochs/File Photo

By Nupur Anand

NEW YORK (Reuters) - JPMorgan Chase Co-CEO of commercial and investment bank Doug Petno said that investment banking revenue will grow in low double digits for the third quarter of this year. Petno also told an investor conference on Tuesday that markets revenue would grow in the high teens percentage rate for the third quarter.

"Geopolitics has created a true fog of uncertainty. But the real positive is that most of our clients are seeing through it and adapting to the volatility created around global trade," Petno said.

"So as the fog lifts, you are seeing client sentiments pretty strong and board and management confidence is good and you can see it in market activities across capital markets," he added.

Investment banking activity is being led by mergers and acquisitions which is expected to continue, big initial public offerings are back and performing well, equity capital markets is expected to be robust and the overall pipelines look good, Petno added.

"It has been one of the busiest summers that we have seen in a long time," Petno said, adding that client activity has picked up since the slump seen after tariffs were announced in April.

The bank has recently added several senior bankers in technology, energy and activism defense, and hired more than 300 bankers between January and April across its global banking unit.

Petno warned that there could be an uptick in compensation related expenses.

JPMorgan's investment banking fees grew 7% to $2.5 billion in the second quarter. That result surpassed its guidance in May for a decline by a mid-teens percentage. Meanwhile, banks trading revenues are also on track to increase. Market turmoil from tariff announcements also propelled the bank's trading revenue up 15% to $8.9 billion in the second quarter, driven by gains in both fixed income and equities.

Shares were up by over 1.5% to $297.64 in midday trading.

(Reporting by Nupur Anand in New York; additional reporting by Tatiana Bautzer, Editing by Lananh Nguyen and Nick Zieminski)