NEW YORK, June 12 (Reuters) - JPMorgan Chase ( JPM )

boosted its outlook for investment banking revenue, forecasting

a jump of 25% to 30% in the second quarter fueled by capital

markets, a top executive said on Wednesday.

The forecast became more bullish than in May, when the bank

predicted investment banking revenue would rise by a mid-teens

percentage in the second quarter.

"Capital markets continues to be extremely robust and the

overall franchise has improved," said Troy Rohrbaugh, co-CEO of

JPMorgan's ( JPM ) commercial and investment bank.

Trading revenue is expected to improve slightly, exceeding

the bank's earlier estimate for a percentage gain in the

mid-single digits.

In the first quarter, JPMorgan's ( JPM ) trading revenue fell 5% to

$8 billion, with revenue from fixed income, currency and

commodities dropping 7%, while equities was flat.

Meanwhile, investment banking revenue gained 27% to $2

billion in the first quarter, driven by higher fees for debt and

stock underwriting.

JPMorgan's ( JPM ) board has identified Rohrbaugh as a potential

candidate to succeed CEO Jamie Dimon, who is expected to step

down in less than five years.

The other contenders include Jennifer Piepszak, co-CEO of

commercial and investment banking, Marianne Lake, CEO of

consumer and community banking, and Mary Erdoes, CEO of asset

and wealth management.

Rohrbaugh outlined leadership changes across the bank's Wall

Street division, including his own promotion in January to run

it alongside Piepszak.

"A lot of firms when they create co-heads, it turns into a

cage match -- that's definitely not how JPMorgan ( JPM ) works,"

Rohrbaugh said.

Given their respective backgrounds, Rohrbaugh typically

focuses on markets, while Piepszak concentrates on investment

banking, and they jointly manage payments.

"That said, if I'm on a plane, then everyone in markets will

call Jenn (Piepszak) and she'll make the decision," Rohrbaugh

said. "And Jamie will hold us jointly responsible for the

outcome and anything that is truly strategic ... Jamie can get

you anywhere."

Rohrbaugh, who traded currency options earlier in his

career, said the Federal Reserve will probably delay interest

rate cuts beyond market expectations.

The Fed held interest rates steady earlier Wednesday and

pushed out the start of rate cuts to perhaps as late as

December.