Bloomberg News reports that equity analysts led by Kian Abouhossein estimate revenue from trading debt to be 8.2% higher for the fourth quarter compared with the same period a year earlier for eight banks they covered in a note to clients today. Revenue from trading stocks will fall 9.2%, they estimate.
“The IB revenue environment in the fourth quarter 2014 has been tricky so far in our view,” the analysts said. “We expect a slightly more seasonal trend.”
UBS, the world’s biggest wealth manager, has “material dividend payout potential” with a high capital ratio, a measure of financial strength, the analysts said. Both UBS and Deutsche Bank can digest large litigation expenses without seeing their capital levels fall too low.
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