How Much Did The 5 Largest U.S. Investment Banks Make Through FICC Trading Activities In 2016?
The 5 largest U.S investment banks reported fixed income, currencies and commodities (FICC) trading revenues of over $50 billion for full year 2016. This represents a strong 15% increase from the figure of under $44 billion for the previous year.
The FICC trading revenue figure here have been taken from the earnings release of individual banks. The chart below captures FICC trading revenues reported by the five largest U.S. investment banks since 2012. The green-to-red shading for figures along a row show the variations in these revenues for a particular bank over this period.
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The FICC trading industry has undergone a systemic change since the economic downturn of 2008, as stricter capital requirement norms and an overall reduction in activity levels dragged down revenues from the highs seen prior to 2008. Most banks reacted to the changing environment by reducing their presence in the industry – especially Morgan Stanley, which now has an FICC trading desk that is just a fraction of the size seen around 2010. It should be noted that FICC trading revenues peaked in 2012 thanks to improving economic conditions in the U.S. and Europe, and also as most banks had made minimal changes to their securities trading operations yet. That said, JPMorgan has retained the top spot in global FICC trading revenues every single year since 2011. The diversified banking giant’s presence in the industry swelled after its acquisition of Wachovia – allowing it to surpass Goldman’s dominance over 2006-10.
See the links below for more information and analysis about the 5 largest U.S. investment banks:
- How Much In M&A Advisory Fees Did The 5 Largest U.S. Investment Banks Generate In 2016?
- How Much In Equity Underwriting Fees Did The 5 Largest U.S. Investment Banks Generate In 2016?
- How Much In Debt Origination Fees Did The 5 Largest U.S. Investment Banks Generate In 2016?
- How Much In Total Advisory & Underwriting Fees Did The 5 Largest U.S. Banks Earn In 2016?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment/ ask questions on the comment section
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to the full Trefis analysis for Goldman Sachs | JPMorgan | Morgan Stanley | Bank of America | Citigroup
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