Banks: Deutsche Bank 4Q12 reorganisation

Deutsche Bank 4Q12 reorganisation The 4Q12 reorganisation substantially elevated CB&S reported profitability by shifting a large portion of litigation expenses to NCOU; and … … moving an ETF business with weak profitability into the newly integrated AWM division.

Theme: Commodity Trading Gets Physical

Commodity Trading Gets Physical Dodd-Frank and the actions of regulators are turning banks away from the US energy derivatives market. Since the start of 2011, Tricumen’s Energy Client Flow Index (CFIndex) has fallen by 20% …  … while the volume of metals traded has grown at a compound annual growth rate of 17%. The combined […]

Theme: Credit Where Credit’s Due

Credit Where Credit’s Due While overall bond trading inventories are down, there is considerable variance across the market. Using four of our core US banks as an example, GS and JPM have significantly increased their balance sheet holdings in the past year, in contrast to Citi and MS. CDS holdings have followed a different trajectory, […]

Theme: CMBS, CRAs and CRA3

CMBS, CRAs and CRA3 A recent CMBS conduit issue by JP Morgan prompted a rather unusual action from Moody’s. To ‘our’ banks – seeking to revive hitherto quiet markets – this may introduce an additional layer of uncertainty. The upcoming European ‘CRA3’ regulation is not likely to help; to us, some of the proposals appear fundamentally […]

Sector: Capital Markets 3Q12 Update

Capital Markets 3Q12 Update Tricumen publishes its Capital Market Results Update for 3Q12, comprising granular analysis of product revenue for the world’s leading Investment Banks.

Banks: UBS FICC restructuring

UBS FICC restructuring The strategic restructuring plan, announced yesterday, shone the spotlight on specific product areas; in this note, we focus on UBS’ strengths and opportunities in key client segments. Drawing on our ‘360-degree’ profitability work and on the basis of the information released thus far, we view UBS Investment Bank’s RoAE and cost/income targets […]

Theme: BIS Basel 3 regulatory consistency assessment

BIS Basel 3 regulatory consistency assessment The BIS preliminary report on the progress of the implementation of Basel 3 on capital requirements in the EU, the US and Japan drew sharp criticism from the European Commission. We find the BIS’ findings, on the whole, fair and measured. We have made no changes to our normalised RWA […]

Tricumen Approaches: The Bank of the Future

The Bank of the Future New regulations and tighter margins have depressed ‘typical’ wholesale banking pre-tax RoE to about 19%; the outlook is not optimistic. In our view, future leaders will operate a new wholesale banking model, one which utilises hitherto neglected synergies between the ‘traditional’ capital markets operations with other areas of the bank; […]

Sector: Capital Markets 2Q12 Update

Performance of the Top Investment Banks in the 2st Quarter 2012 Tricumen publishes its Capital Market Results Update for 2Q12, comprising granular analysis of product revenue for the world’s leading Investment Banks.

Banks: Bob Diamond’s Tenure at Barclays

Bob Diamond’s Tenure at Barclays – A Review With Bob Diamond’s resignation from Barclays, it is worth taking stock of his impact.  Tricumen’s review charts the growth of Barclays Capital into a top tier investment bank and sets out BarCap’s revenue growth from 1998 to the present day compared to average revenues of the Top […]