(The following statement was released by the rating agency)
Link to Fitch Ratings' Report: U.S. Banking Capital Markets
Update: 1Q14 (Solid
FICC Results Drive Overall Higher Revenues)
NEW YORK, May 08 (Fitch) Capital markets revenues at the major
continue to be constrained, according to Fitch Ratings, by
conditions, Fed tapering concerns, and regulatory costs. These
likely persist for the remainder of 2014, but will be partially
offset by an
improved corporate M&A environment and equity underwriting.
Revenues from fixed income, currency and commodities (FICC)
trading were down
13% from a relatively strong first quarter 2013 (1Q'13). The
decline reflects the limitations imposed by new regulations and
markets. Fitch notes, however, that equity market revenues could
uptick, particularly if global stock market performance remains
Renewed confidence in the corporate sector has spurred an
increase in M&A
activity as companies seek to deploy large cash balances
post-crisis. While 1Q advisory fees were modestly lower from
last quarter, Fitch
expects the remainder of 2014 to be stronger, as the number and
announced M&A transactions has increased significantly.
Overall, capital markets revenues were mixed for the five
Results increased 23% from a difficult 4Q'13, but declined on a
basis, down 6% and 25% from 1Q'13 and 1Q'12, respectively.
For further commentary, the report 'U.S. Banking Capital Markets
is available at 'www.fitchratings.com' or by clicking on the
link. The report
covers the five large U.S. global trading and universal banks
(Bank of America,
Citigroup, Goldman Sachs, JP Morgan, and Morgan Stanley).
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
Media Relations: Brian Bertsch, New York, Tel: +1 212-908-0549,
Additional information is available at 'www.fitchratings.com'.
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