Investment banks may see big revenue drop

Global investment banks may see revenue drop 19% in the third quarter, lowering earnings per shares across the industry, as a surge in volatility caused by turmoil in China recedes, according to analysts at JPMorgan.

'Recent strong turnover, especially in equities, could decline materially once markets settle -- not just in Asia but globally', analysts led by Kian Abouhossein wrote in a report on Thursday.

'Although volatility is good for investment banks', it 'could impact deal completion in the third quarter and potentially the fourth quarter', they wrote, when cutting their estimates for earnings-per-share by an average of 2% to 3% through 2017.

Bloomberg News reports that China has roiled markets around the world in the past two months after poor economic data fed fears its economy is slowing more than expected, leading to a crash in domestic shares that wiped out almost $4tril of value. 

To access the complete Bloomberg News article hit the link below:

Global Investment Banks May See Revenue Drop, JPMorgan Says

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