Securities Trading Revenues For Largest U.S. Investment Banks Exceeded $20 Billion For Second Consecutive Quarter

-0.97%
Downside
193
Market
191
Trefis
JPM: JP Morgan Chase logo
JPM
JP Morgan Chase

The five largest U.S. investment banks followed up their extremely strong securities trading performance for the first quarter of the year with another strong showing in Q2 2018, with these banks collectively reporting nearly $20.4 billion in trading revenues for the quarter. While this is well below the seasonally elevated figure of $24 billion for Q1 2018, it is roughly 10% ahead of the $18.6 billion reported in Q2 2017. Notably, the average securities trading revenues for these banks over the 18-quarter period from Q3 2013 was around $18.3 billion – illustrating the impact of upbeat market conditions over recent quarters on these revenues.

We examine the trends in trading revenues for these banks as a part of our interactive model on securities trading revenues for the five largest U.S. investment banks. We highlight key observations related to their trading revenues below.

Relevant Articles
  1. Up 38% Since The Start Of 2023, What Is Next For JPMorgan Stock?
  2. Up 6% In The Last Six months, What’s Next For JPMorgan Stock?
  3. JPMorgan Stock Topped The Consensus In Q2
  4. What To Expect From JPMorgan Stock?
  5. What To Expect From JPMorgan Stock In Q1?
  6. Is JPMorgan Stock Fairly Priced?

The table below details the trend in total securities trading revenues (equity as well as fixed income) for each of these banks in the last five quarters. The green-to-yellow shading along a column highlights the relative performance of each bank in any given quarter. JPMorgan’s dominance in the securities trading industry is evident here. Notably, the diversified banking giant’s average trading revenues over the last twelve quarters was nearly $5 billion – a figure that is almost 30% more than that for its closest rival Citigroup ($3.8 billion). While the average revenue figure for Goldman Sachs and Bank of America over this period was nearly identical at $3.36 billion, Morgan Stanley saw an average figure just below $3.3 billion.

JPMorgan has ranked #1 in nearly every quarter since Q4 2010 – with the exception of Q4 2012, when Goldman Sachs grabbed the top spot – primarily due to its strong presence in the global FICC (fixed-income, currencies and commodities) trading industry. Citigroup stands out in this list as the only bank to report lower trading revenues year-on-year. This can be attributed to the fact that the bank has a much smaller equity trading desk compared to its peers, and as Q2 was a particularly strong period for equity trading, Citigroup did not benefit to the same extent as the other banks.

Details about how changes to Securities Trading Fees affect the share price of these banks can be found in our interactive model for Goldman Sachs | Morgan Stanley | JPMorgan Chase | Bank of America | Citigroup

Additionally, you can understand the impact of  Investment Banking Fees on the share price of these banks in our interactive model for Goldman SachsJPMorganMorgan StanleyBank of America | Citigroup

What’s behind Trefis? See How it’s Powering New Collaboration and What-Ifs
For CFOs and Finance Teams | Product, R&D, and Marketing Teams
More Trefis Research
Like our charts? Explore example interactive dashboards and create your own