U.S. Capital Markets 1Q22 Results: Exceptional Trading, More Normalized IB Fees
This commentary reviews the 1Q22 results for U.S. capital markets banks.Key highlights include:
• Capital Markets results at the U.S. Peer Group in 1Q22 remained strong, with aggregate net revenues up 26% linked-quarter, which were only 11% lower than the record-setting 1Q21.
• Performance was driven by exceptional trading results and continued strength in Advisory, which outpaced the impact of an industry-wide slowdown in issuance volumes, particularly within Equity Underwriting.
• Importantly, the U.S. peer group remains well positioned regardless of the operating environment, still owning top five positions globally across virtually all capital markets-related activities.
“Looking ahead, pipelines were reported to be relatively in line with the strong levels reported in recent periods. Whether that translates to revenue depends largely on what are highly fluid market conditions.” said Michael McTamney, CFA, Senior Vice President – Global FIG.
Bank of America is a bank and a financial holding company. Through its subsidiaries, the company provides a range of banking, investing, asset management and other financial and risk management products and services. The company's segments include: Consumer Banking, which provides credit, banking and investment products and services; Global Wealth & Investment Management, which provides investment management, brokerage, banking and retirement products; Global Banking, which provides lending-related products and services, integrated working capital management and treasury solutions, and underwriting and advisory services; and Global Markets, which provides sales and trading services and research services.
Citigroup is a financial services holding company whose businesses provide consumers, corporations, governments and institutions with a range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, trade and securities services and wealth management. The company operates via two primary business segments: Global Consumer Banking, which provides banking services to retail customers through retail banking, Citi-branded cards and Citi retail services; and Institutional Clients Group, which includes banking and markets and securities services.
JPMorgan Chase is a financial holding company. Through its subsidiaries, the company's segments include: Consumer and Community Banking, which provides services through bank branches, ATMs, digital (including mobile and online) and telephone banking; Corporate and Investment Bank, which consists of Banking and Markets and Securities Services, provides a suite of investment banking, market-making, prime brokerage, and treasury and securities products and services; Commercial Banking, which provides financial solutions, including lending, treasury services, investment banking and asset management products; and Asset and Wealth Management, which is engaged in investment and wealth management.
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