Sector: Capital Markets: Results Review 2Q14

Capital Markets: Results Review 2Q14 / 6m14

The capital markets 6m14 revenue for the Top 13 investment banks totalled $101bn, 3% below the prior year period. FICC weakened 9% during this period to $46bn, and equities revenue declined slightly too; but this was partially offset by strong issuance and advisory fees, and a modest advance in proprietary trading & principal revenues.

Banks continued trimming their headcounts but – contrary to expectations of many – there were no wide-ranging layoffs in 2Q14. Revenue/head productivity rose in all areas of issuance & advisory, and particularly ECM; but declined in FX, rates, commodities and equity derivatives.

The cost structure is shifting away from comp & benefits and towards non-comp, and IT in particular: several banks in this report have announced major investment programmes in specific areas of business (see Company section).

Barclays and RBS have published interim results in a new format. This report contains our initial analysis of their new 2013 and year-to-date 2014 revenues, and we will also review prior years in due course.

Sector: Capital Markets: Results Review 2Q14