U.S. Capital Markets 3Q22 Results: Strong Trading Offsets Another Steep Decline in Investment Banking
This commentary reviews the 3Q22 results for U.S. capital markets banks.Key highlights include:
• Similar to the prior quarter, Fixed Income trading delivered exceptional results in 3Q22, which largely offset material declines across Investment Banking businesses.
• Total net revenues declined 16% compared to an outsized 3Q21, but were still about 18% higher than the pre-pandemic run rate.
• Looking ahead, we expect these trends to continue until there is at least some clarity around the economic outlook and meaningfully less volatility in financial markets.
“Looking ahead, we expect these trends to continue until there is at least some clarity around the economic outlook and meaningfully less volatility in financial markets. Regardless, we see the U.S. peer group as well positioned, given their top-tier market positions globally across businesses,” 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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