Reuters / John Gress
A dismal year on Wall Street has been further confirmed by the latest business-by-business report card.
Investment banking revenues at the top-12 banks fell to $ 118.1 billion during the first three quarters of 2017, according to data from industry consultant Coalition.
Banks saw a strong first quarter in 2017, but it’s been downhill since.
Third-quarter revenues dropped 11% from 2016 to $ 36 billion, according to the latest data from Coalition. That follows a trying second-quarter in which revenues fell 5% from the previous year to $ 39.5 billion.
The culprit for the down year hasn’t changed in recent months: Trading teams have been hammered, especially on the Fixed Income, Currency, and Commodities (FICC) side of the business.
Through three quarters, FICC trading is down $ 4.1 billion, or 7%, to $ 54.9 billion.
Fourth quarter projections look just as bleak, with high-yield credit markets showing warning signs in recent weeks that could compound the trading woes.
The Coalition data includes revenues for: Bank of America Merrill Lynch, Barclays, BNP Paribas, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan, Morgan Stanley, Societe Generale, and UBS.
Here’s the full breakdown:
Despite a hot start, Wall Street revenues fell 1% to $ 118.1 billion through the first nine months of the year. An 11% decline in the third quarter — including 21% and 3% fall-offs in FICC and equities trading, respectively — erased a 4% gain on the investment banking side.
Coalition
FICC trading has been the most dire part of the business in 2017, falling $ 4.1 billion, or 7%, to $ 54.9 billion through three quarters. Most of that decline can be attributed to G10 rates and G10 FX, thanks in part to low volatility, especially compared to 2016. Commodities continued to get clobbered, falling 35% from last year and 50% from 2015.
Coalition
Equities also declined, although much more modestly at 3%, a $ 1 billion retreat. Depressed demand from clients and slower trading contributed to struggles in cash equities and prime services, which fell 7% and 2%, respectively.
Coalition
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