Archive | Publications RSS feed for this section

Sector: Capital Markets: Regions 6m16

This publication is supplementary to our quarterly Results Review; it shows banks’ capital markets quarterly revenue and semi-annual pre-tax profit and productivity dynamics relative to their peers in major regions. The full dataset includes operating revenue, expenses and pre-tax profit at the Level 3 product detail in 7 regions, as well as normalised client segment […]

Read full story Comments are closed

Sector: Capital Markets: Results Review 2Q16 / 6m16

The 1H16 operating revenue reported by banks in this report totalled $86bn, 14% below 1H15. The 2Q16 revenue reached $31bn, 12% down from a prior-year period. In US dollar terms, issuance and advisory fees dropped 28% vs 2Q15 and equities by 20%, while FICC was essentially flat, with several banks reporting a surge in revenue spurred by Brexit. […]

Read full story Comments are closed

Sector: Capital Markets: Regions 1Q16

This publication is supplementary to our quarterly Results Review; it shows banks’ capital markets quarterly revenue and semi-annual pre-tax profit and productivity dynamics relative to their peers in major regions. The full dataset includes operating revenue, expenses and pre-tax profit at the Level 3 product detail in 7 regions, as well as normalised client segment […]

Read full story Comments are closed

Sector: Capital Markets: Results Review 1Q16

The combined 1Q16 operating revenue of banks in this report dropped 25% y/y, from US$54bn to US$41bn. Front office productivity also declined across the board, despite continuing/extended headcount cuts: 1,600 across BAML, BNPP, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs and Societe Generale, primarily in FICC, but also in equity derivatives (Credit Suisse) and DCM (Deutsche […]

Read full story Comments are closed

Banks: Credit Suisse – Restructuring EMEA and Americas

Credit Suisse’s Mar-16 Strategy Update failed to immediately reassure investors. The bank expects a 40-45% year-on-year drop in Global Markets’ trading revenue, and a loss in 1Q16 In our view, Credit Suisse has the ‘wrong kind of fixed income’ for their strategy and current markets

Read full story Comments are closed

Sector: European vs US investment banks – Revenue dynamics 2007-2015

European banks have lost market share in capital markets in a trend that began in 2010. This is most apparent in FICC, but Europeans have also lost ground in bond issuance, M&A/Advisory, ECM, and cash and equity derivatives. Prime services is the only product area in which European banks advanced strongly – at least until […]

Read full story Comments are closed

Sector: Capital Markets: Regions FY15

This publication is supplementary to our quarterly Results Review; it shows banks’ capital markets quarterly revenue and semi-annual pre-tax profit and productivity dynamics relative to their peers in major regions. The full dataset includes operating revenue, expenses and pre-tax profit at the Level 3 product detail in 7 regions, as well as normalised client segment […]

Read full story Comments are closed

Sector: Capital Markets: Results Review 4Q15 / FY15

Capital markets revenue for the banks in this report reached $175bn in FY15, 4% below FY14; 4Q15 accounted for $33bn, down 7% y/y. Equity and M&A/Advisory revenue advanced, but ECM, DCM and FICC all dropped sharply. The FY15 pre-tax profit was essentially unchanged versus FY14 as a drop in primary profitability – caused by a drop […]

Read full story Comments are closed

Banks: Standard Chartered – credit risk management

The collapse of Standard Chartered’s ROE over the past three years was largely caused by rising impairment costs. In our view, the growth in impairments suggests that there are issues with the bank’s risk management, rather than with the underlying business proposition. The bank’s current approach appears fragmented and lacks some of the dynamic techniques […]

Read full story Comments are closed

Banks: Barclays Investment Bank – extending the cuts

Barclays remains focused on underlying profitability. Historically, however, the bank’s main challenge was revenue generation, rather than cost control. Our analysis highlights APAC equities, global credit, EMEA securitisation and US commodities as key areas of weak profitability.

Read full story Comments are closed