U.S. Capital Markets 2Q23 Results: Elevated Trading Offsets Muted Investment Banking; Green Shoots Emerging?
This commentary reviews the 2Q23 results and outlook for U.S. capital markets banks.Key highlights include:
• Consistent with recent quarters, strong trading results in Fixed Income and Equities offset weak investment banking revenue, which likely troughed in 2Q23.
• Total net revenues were 15% higher than the pre-pandemic run rate and down only 10% compared to a very strong 2Q22.
"Looking forward, the second half of the year remains unpredictable in our view, but we expect more normalized results during 2024, presuming there is greater clarity around the economic outlook and interest rates" 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.
DBRS Morningstar is a global credit ratings business with 700 employees in eight offices globally. DBRS and Morningstar Credit Ratings are committed to empowering investor success, serving the market through leading-edge technology and raising the bar for the industry.
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