CIB Review 4Q22/FY22

Capital Markets: Overview Operating revenue of banks in this note reached $206bn, 12% below FY21. Banking revenue halved on weak ECM and DCM, but Markets advanced 9% y/y, driven by strong macro and, to a lesser extent, commodities and equity derivatives. In view of the uncertain outlook, banks cut overall costs by 4% vs FY21; […]

CIB Review 3Q22/9m22

Capital Markets In difficult markets, banks’ earnings remained weak – weaker, in fact, than was the case in 1H22. In 9m22, the 14 banks in this note reported operating revenue of $154bn, 16% below the prior-year period. Revenue in 3Q22 totalled $46bn, 21% down y/y. Primary/issuance fees halved vs 9m21 and 3Q21 and Equities revenue […]

CIB Review 2Q22/6m22

Capital Markets In 1H22, banks in this report generated operating revenue of $116bn, 7% below 1H21 as a sharp drop in underwriting fees and spread products was only partially offset by strong macro products and equity derivatives. After a tight 1Q22, banks were unable to reduce costs to match a decline in revenue; as a […]

CIB Review 1Q22

Capital Markets: Overview In aggregate, the banks generated $63bn in operating revenue in 1Q22: 8% below 1Q21, but 26% ahead sequentially. FICC and Equities were broadly stable, but Banking was depressed by weak underwriting fees, across DCM (except high grade bonds) and ECM. Most banks – even those that typically ‘front-load’ comp and bonus accruals […]

CIB Review 4Q21/FY21

Capital Markets: Overview The 14 banks in this report generated $50bn of revenue in 4Q21, lifting the 2021 total to $233bn, 8% up y/y. All three business areas registered a slowdown in 4Q21 compared to the first nine months of the year, but only FICC suffered a sharp drop, due to G10 rates, securitisation and credit. […]

CIB Review 2Q21/6m21

Capital Markets: Overview Investment banks in this report generated revenue of $127bn in 1H21, 6% ahead of 1H20. Operating costs grew 12% y/y: US banks’ continued spend/investment – including performance-related comp accruals – contributed to a 4% dip in pre-tax profits. European banks, by contrast, increased profits, but that was partly due to the non-recurrence […]

CIB Review 1Q21

Capital Markets: Overview For most banks in this report, 1Q21 was a quarter of multi-year records. The combined capital markets revenue exceeded $70bn, 34% ahead of 1Q20 driven, in particular, by ECM, DCM loans and equity derivatives. Costs also jumped, but by comparatively modest 22%, and with wide difference between US and European banks: in […]

CIB Review 4Q20/FY20

Capital Markets: Overview The exceptional year ended on a high note: banks featured here reported capital markets revenue of $49bn in 4Q20, 24% ahead of 4Q19. On FY basis, revenue jumped 30% – primarily driven by US banks’ Markets divisions, and FICC in particular – and per-FTE productivity by 26%.  Aggregate costs also grew in […]

Sector: Wholesale Banking Review 3Q20/9m20

Capital Markets Extending extraordinary gains from 1H20, the combined capital markets revenue of 15 banks in this note reached $51bn in 3Q20, lifting the 9m20 total to $172bn, 30% ahead of 9m19 – and easily beating conservative expectations outlined by some banks at the end of 2Q20. Revenue/FTE surged 55% y/y. FICC remains the star performer: up […]

Sector: Wholesale Banking Review 2Q20/6m20

Capital Markets Accelerating extraordinary gains seen in 1Q20, the 15 banks in this report surged capital markets revenue by 35% y/y in 2Q20 to $66bn, with FICC contributing the lion’s share of gains. Costs were tightly controlled, however, leading to a 57% jump in overall pre-tax profits (EMEA banks almost doubled their aggregate profit). Banks […]