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Fitch: Mixed Capital Markets Results for Largest U.S. Banks
May 8, 2014 / 2:26 PM / 3 years ago

Fitch: Mixed Capital Markets Results for Largest U.S. Banks

(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) here NEW YORK, May 08 (Fitch) Capital markets revenues at the major U.S. banks continue to be constrained, according to Fitch Ratings, by macroeconomic conditions, Fed tapering concerns, and regulatory costs. These issues will 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 year-over-year decline reflects the limitations imposed by new regulations and uncertain debt markets. Fitch notes, however, that equity market revenues could experience an uptick, particularly if global stock market performance remains positive. Renewed confidence in the corporate sector has spurred an increase in M&A activity as companies seek to deploy large cash balances accumulated 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 size of announced M&A transactions has increased significantly. Overall, capital markets revenues were mixed for the five largest banks. Results increased 23% from a difficult 4Q'13, but declined on a year-over-year basis, down 6% and 25% from 1Q'13 and 1Q'12, respectively. For further commentary, the report 'U.S. Banking Capital Markets Update: 1Q14' 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). Contact: Tara Kriss Senior Director +1-212-908-0369 Fitch Ratings, Inc. 33 Whitehall Street New York, NY 10004 Media Relations: Brian Bertsch, New York, Tel: +1 212-908-0549, Email: brian.bertsch@fitchratings.com. Additional information is available at 'www.fitchratings.com'. ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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