Results Review: 1Q13
Capital markets 1Q13 revenue of top 12 banks totalled $56bn, 6% below 1Q12. Primary fee activities grew strongly, with the top 3 banks gaining market share in DCM bonds, securitisation, and ECM. In sales & trading, FICC declined from a very strong 1Q12; and in equities the initial optimism proved unfounded as the overall revenue opportunity declined relative to 1Q12.
As layoffs announced in late 2012 continued into this 1Q13, the overall revenue/front office headcount productivity grew in primary activities and equities. FICC productivity declined, however: barring an upturn in revenues, we expect ‘our’ banks will trim their staffing levels further.
Citi’s share of the overall revenue grew on comparably strong FICC revenues. UBS recorded a more modest gain, but the bank’s 1Q13 results were well received, not least due to its strong FICC showing (see our ‘UBS Restructured’ note, 2-May-13). Morgan Stanley lost more ground, especially in FICC.