|
Trading revenue for the top 10 global investment
banks totaled $36.5 billion in the three months to September, a
rise of 11 percent on the same period a year ago, according to
industry analytics firm Coalition.
This was largely driven by a 16 percent rise in fixed income,
currencies and commodities (FICC), which benefited from greater
volatility caused by uncertainty over U.S. and European monetary
policies and geo-political instability.
Coalition does not break out third-quarter revenues by segment,
but said rates and foreign exchange picked up in the three
months to end-September.
That marks a change from previous months, when the low interest
rate environment together with the effect of tougher regulations
forcing banks to hold more capital squeezed returns.
The first half weakness was reflected in year-to-date FICC
revenues, which were 7 percent behind last year, Coalition said.
In equities, revenue was $9.9 billion, 3 percent up on last
year. Growth came from prime services, as hedge funds, sitting
on record assets under management, boosted activity.
Investment banking divisions (IBDs), which underwrite and
arrange share issues and other deals, saw revenue climb 12
percent to $9.4 billion in the third quarter.
Coalition said the availability of cheap financing had given
companies the confidence to pursue deals, while favorable
investor sentiment supported stock market listings.
IBD was the only area expected to deliver annual growth.
Coalition forecast an 11 percent rise in full-year revenue at
IBDs, while FICC and equities were seen down 4 percent and 5
percent, respectively.
Total annual trading revenue will be little changed from the
year before at $152.7 billion.
The data showed that banks' restructuring continued into the
third quarter, with headcount down 4 percent year-on-year. All
divisions saw cuts, Coalition said.
Coalition tracks the performance of Bank of America Merrill
Lynch, Barclays, BNP Paribas, Citi, Credit Suisse,
Deutsche Bank, Goldman Sachs, JPMorgan, Morgan Stanley and
UBS.
(Reporting by Clare Hutchison and Jamie McGeever; editing by
Keiron Henderson)
[© 2014 Thomson Reuters. All rights
reserved.] Copyright 2014 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
