Daily Management Review

‘Calmer Markets’ Boost Revenue Growth Of The Leading Global Banks


09/07/2017


12 largest investment banks in the world recorded revenue increment in the first half of 2017.



The first six months of 2017, brought a revenue increment in the twelve largest banks of the world owing to a “stronger performance in the underwriting of debt and equity issues” in comparison to its previous year’s figures, revealed a survey carried on the subject.
 
Reuters informed that:
“Overall revenues were up 4 percent at $82 billion (62.90 billion pounds) in the first half of 2017 but were still almost 13 percent down from the same period five years ago, according to data from industry analytics firm Coalition”.
 
The improvement seen in the world economic conditions clubbed with healthy corporate performance reaping profits, Central Bank’s ample money supply even amidst the rising “U.S. interest rates” and “some fading political risk from elections” have ensured the “market volatility” to snuggle down in its “lowest” corners for “years across fixed income, currency and commodity markets” on a global platform.
 
As a result, the issuing of debt and equity have become “easier” while “off trading” profit has become “harder”. According to Coalition’s head of research and analytics, George Kuznetsov:
“A very low level of macro volatility has supported equity issuance but put pressure on certain fixed income products, while record low interest rates have helped drive the debt business”.
 
Moreover, in the FICC divisions or in “fixed income, currencies and commodities”, that holds the “largest share of total revenue” exhibited a stable performance in comparison to its respective figures of 2016’s first half. And Kuznetsov also said:
“The expectations earlier in the year of a recovery in FICC have not materialised”.
 
However, Reuters continued further:
“Meanwhile equities revenue fell 3 percent to $22.6 billion due to tougher competition, the report said”.
 
 
 
References:
reuters.com







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