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10 things you need to know about banks’ performance in the first quarter, by Morgan Stanley

Winners, losers, also-rans

Winners, losers, also-rans

Morgan Stanley’s banking analysts have released some new reports on the state of the financial services industry in the first quarter. We alluded to them earlier in our suggestion that things aren’t looking too promising for Deutsche Bank and Barclays’ fixed income currencies and commodities businesses, but this allusion just scratches the surface of the matter. The reports also say that:

1. It’s been a great quarter in M&A

M&A revenues Q1

2. It’s been a great quarter in equity capital markets (ECM)

ECM Q1

3. It’s been a great quarter in European equities trading and an OK quarter in American equities trading 

Equities trading 1

European equities trading 2

4. It hasn’t been so great in debt capital markets (DCM)

DCM revenues

5. It’s been a bad time in FX.

FX trading volumes were down 30% year-on-year in the first quarter according to Morgan Stanley.

6. It’s been pretty good in credit

Morgan Stanley estimates that corporate credit trading revenues were up 14% year-on-year in the first quarter.

7…And sort of OK in rates and commodities

After a difficult year in 2013, Morgan Stanley says rates trading revenues are up quarter-on-quarter, but “mostly down” year-on-year. Commodities revenues are “mostly up” in both time periods.

8. These are still harsh times in private banking 

Private banking margins

9. These are tough times at Barclays’ investment bank (the excerpt below refers to Barclays specifically)

Barclays FICC

10. It hasn’t been so hot in equity derivatives 

“Equity derivative volumes in Europe and US are mostly down YoY but up QoQ,” Morgan Stanley concludes.

Related articles:

The best MBA for a high paying job on Wall Street.

Citi suddenly fills job neglected for five whole years

Time to preemptively escape from Barclays and Deutsche’s FICC businesses? 

 

 

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