JPMorgan Chase (JPM.US) expects a significant YoY increase of over 10% in both trading and investment banking revenue for Q1, signaling a potential "harvest season" for Wall Street banks.

As Wall Street banks continue to benefit from volatility and the recovery in capital markets, Morgan Stanley (MS.US) could see a 10% or more increase in its trading revenue and investment banking revenue in the first quarter.

JPMorgan Chase's chief operating officer Jenn Piepszak said on Tuesday that trading revenue could grow by a "low double-digit" percentage year-on-year, while investment banking expenses could grow by "around 15%." She noted that the momentum from the last few months of last year continued, when JPMorgan's traders had their best fourth quarter ever.

On the investment banking side, debt issuance remains "very strong" and the bank expects an "actual recovery" in IPOs. Piepszak said a merger recovery would "take some time," but JPMorgan still expects a rebound in the business.

Piepszak was appointed JPMorgan's chief operating officer last month, after about a year of managing the bank's corporate and investment banking business with Troy Rohrbaugh.

JPMorgan Chase reported fourth-quarter net profit of $14bn, up 50% from $9.3bn a year ago. Trading revenue rose 21% year-on-year to $7.05bn; investment banking revenue rose 49% to $2.48bn.