Oops!: “…performance of the world’s 12 largest banks, showed the first quarter was the slowest for investment banking revenue since the financial crisis.”
The Brits would call this a “bloody disaster!” suppose there may be some buying opportunities….ugh…
Equity capital markets revenue was the lowest it has been since the London research firm’s records began in 2006 – particularly bad news for banks given that the start of the year is typically their busiest period.
Headcount declined across banking and markets, with fixed income, currencies and commodities seeing the worst declines. FICC revenues fell significantly driven by a weak trading environment.
Amrit Shahani, research director at Coalition, said: “Typically Q1 is the strongest quarter of the year, contributing to 30-35% of annual revenues, so for 2016 to be comparable to 2015, we need activity to pick up strongly in the 2nd half of the year.”
The sluggish start to the year dragged overall investment banking revenues down 25% for the quarter to $7.8 billion.
Productivity – measured by revenue per full-time employee in the front office – declined across all lines of business during the period.
For US and European banks the Q1 results season bore out what Deutsche Bank’s co-chief executive John Cryan said had been a “challenging” period for financial markets, with the bank’s equity underwriting business seeing revenues plunge 68% to just €64 million, eclipsing the 66% drop at Goldman Sachs.