U.S. Capital Markets 4Q21 Results Show Signs of Normalization, Capping off a Historic 2021
This commentary reviews the 4Q21 results for U.S. capital markets banks.Key highlights include:
• Capital Markets results at the U.S. Peer Group in 2021 exceeded our expectations. While 2020 saw each institution experience near-record-setting revenues across most businesses, 2021 was even better overall.
• Looking forward, we would expect overall performance to eventually moderate during 2022, although we see it as more likely to occur in the second half of the year.
“We note that IB pipelines remain full, and in some cases, even higher than where they were at the end of 2020, which bodes well for near-term results. Additionally, the unprecedented operating environment will likely continue to force businesses to reassess their strategic direction, which in turn, should support elevated activity during 2022.” said Michael McTamney, 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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