According to Coalition data, revenue among the top banks’ trading divisions, sales and investment banking increased 14% in the 3rd quarter at around $40 billion- against the revenue that was almost 15% lower a year ago.
Underperformance in trading, equity sales and traditional investment banking controlled the growth in revenue last year. According to the Coalition’s forecast, the revenue is expected to reach $150 billion next year- 5% decrease than last year and around 3% from 2014. Also, year-to-year revenues are calculated to be 7% lower at around $119 billion.
If the coalition analysts are to be believed, the sharp decline in M&A activities and equity capital revenue markets were due to the dampened performance of divisions associated with investment banking. Also, deal making and political instability are working in tandem across the globe in today’s scenario. Reduced follow-on activities and reduced IPOs are particularly visible in Africa, Middle East and Europe.
Although, the Americans portrayed themselves as resilient as Asia Pacific and EMEA, cash and derivatives in equities remain weak. Reports found out that numerous banks delivered noticeable growth rates in 3rd quarter leveraging from commodities sales, trading and fixed income. Analysts further claimed that volatility that sparked from the U.S Presidential Elections is going to turn out as a good news for the companies going into the 4th quarter.
According to the coalition, the decrease in pace of front office job cuts during the previous two quarters could turned out as the best news. While the FICC division experienced the steepest job cuts, IBD jobs were stable.