Sector: Capital Markets: Results Review 2Q15

In 2Q15, Top 13 banks’ capital markets revenue reached $47bn, bringing the 1H15 total to $101bn – exactly in line with 1H14, as Equities revenue compensated for the decline in FICC. Operating expenses totalled $74bn in 1H15, in-line with 1H14. Primary activities and Equities increased expenditure, largely through performance-related comp, but a decrease in FICC […]

Sector: Capital Markets: Regions 1Q15

Capital Markets: Regions 1Q15 This publication is supplementary to our quarterly Results Review; it shows banks’ revenue dynamics relative to their peers in each region and each product area. The full dataset includes operating revenue at the Level 3 product detail, operating expenses and pre-tax profit in 7 regions, as well as client segment revenue […]

Sector: Capital Markets: Results Review 1Q15

Capital Markets: Results Review 1Q15 1Q15 operating revenue totalled $54bn, slightly ahead of $53bn in a prior-year period. M&A, FX and equities put in a strong performance, but this was partly offset by weak DCM loans, credit and mortgages. Operating expenses grew 4%, from $38bn in 1Q14 to $39bn in 1Q15. Much of the increase […]

Sector: Capital Markets Regions: FY14

Capital Markets: Regions FY14 This publication is supplementary to our quarterly Results Review; it shows banks’ revenue dynamics relative to their peers in each region and each Level 2 product area.  The full dataset includes operating revenue at the Level 3 product detail, operating expenses and pre-tax profit in 7 regions, as well as client […]

Sector: Capital Markets Revenue & Profitability Rankings: FY14

Capital Markets: Revenue & Profitability Rankings: FY14 This publication combines our operating revenue, operating expenses and normalised Trading VaR and RWA analysis; and displays product-level rankings for players in each product area.  All data is reconciled against the published financial statements.  Further detail is available on request.

Theme: Rates markets vignettes

Rates markets vignettes Periodically, we compile series of snapshots on markets that have seen interesting developments in recent times.  This note includes a selection of such high-level snapshots for Rates markets, with special emphasises on EMEA and Americas.

Banks: Goldman Sachs Liberty Harbour

Goldman Sachs Liberty Harbour (GS BDC Inc.) We originally published this report in Jan-13 (the report is attached).  In this update, we note that GS now plans to list the unit on NYSE, as Goldman Sachs BDC Inc (ticker: GSBD).  At the end of 2013, GSBDC had net asset value of $575m; GS owns just […]

Sector: Capital Markets: Results Review 4Q14

Capital Markets: Results Review 4Q14 / FY14 The FY14 operating revenue at the Top 13 banks totalled $182bn, 4% below FY13, as slight growth in primary fees was offset by a weak FICC (especially in credit) and soft equities (largely due to the weak 3Q14). Banks matched the fall in revenue with reduction in front office […]

Theme: Future Strategies for IDBs

Future Strategies For Inter-Dealer Brokers The current market is dominated by five inter-dealer brokers (IDBs). While the voice-broked interbank market dominates the revenue pool, it is also the least profitable. IDBs face changing markets, margin compression and challenges from market trading. We suggest three strategies: (1) build the first fully electronic rates platform; (2) build product-specific networks […]

Theme: RWA dynamics FY11-FY14E

RWA dynamics FY11-FY14E European banks included in this note reduced their RWA much more aggressively than their US peers, and have enjoyed a far greater improvement in FY11-FY14E revenue/RWA, largely due to their faster adoption of Basel 3. In securitisation, credit and commodities, the key driver of RWA returns for US banks was revenue; Europeans, by […]