U.S. Capital Markets 3Q21 Results Highlighted by Record-Setting Advisory Revenue
This commentary reviews the 3Q21 results for U.S. capital market banks.Key highlights include:
• The U.S. Capital Markets Peer Group again reported exceptional results in 3Q21, as elevated activity levels continue to buoy revenues. Total net revenues grew 18% year-on-year and were 41% higher compared to 3Q19.
• Performance was highlighted by near or record-setting results in both total IB net revenues and within Advisory. Equities Sales & Trading also had a standout quarter and more than offset normalizing Fixed Income revenues.
• Looking ahead, we expect performance to moderate, as activity levels normalize
“Once again, these results continue to mitigate universal banks' revenue headwinds related to low interest rates and muted loan growth, demonstrating the benefits of a diversified business model.” 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.
Goldman Sachs Group is a bank holding company and financial holding company. The company is a global investment banking, securities and investment management firm that provides a range of financial services to corporations, financial institutions, governments and individuals. The company operates in four business segments: Investment Banking, which serves public and private sector clients and provides financial advisory services; Global Markets, which serves its clients who come to the company to buy and sell financial products, raise funding and manage risk; Asset Management, which provides investment services; and Consumer & Wealth Management, which provides a range of wealth advisory and banking 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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