Quiet trading floors are set to depress global investment banks’ second-quarter revenue 24%, with the underwriting and equities businesses facing the biggest drops, according to analysts at JPMorgan Chase & Co.
Bloomberg News reports that equity-trading revenue will retreat 28% compared with the same period in 2015, while fixed income, currencies and commodities, or FICC, will drop 12%, analysts led by Kian Abouhossein said in a report Thursday. The analysts cut their 2016 earnings estimates for seven of the eight global firms they cover.
Trading of interest-rates products and currencies is 'showing a normal seasonal slowdown', Abouhossein wrote. In equity derivatives, 'lower revenues are driven by ongoing weakness in Asia'.
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