If further proof was needed that banks are beginning to rake in the cash again, last week saw relatively strong quarterly earnings from both ABN Amro and Nomura.
A turnaround in fortunes in the corporate and investment banking operations at ABN Amro helped third quarter profit rise 41% on the same period last year. Total net revenues came in at $715m. Headcount reductions, more business activity and less loan provisions conspired to result in a $115m profit from corporate and investment banking activities in the quarter. The unit posted a $37.8m loss in the period 12 months ago.
ABN is now looking at full year profits of in excess of $2.58bn, a 25% increase on 2002.
Things are also on the up over at Nomura. The Japanese firm posted second quarter net revenues up more than threefold to $441m. Nomura continues to dominate stock underwriting in Japan and has a strong equity retail franchise. The firm's investment banking fees rose 8.7% in the quarter to $182.9m.