Bloomberg News reports that the firm’s revenue from trading dropped in the three months through August to the lowest in six quarters, a sign that an industrywide decline in transactions is worsening. The quarter was saved by investment banking, where fees surged 61% to a record $475.7 million.
That matches what’s been happening on the rest of Wall Street. In the first six months of 2017, the five largest U.S. investment banks - JPMorgan, Bank of America, Citigroup, Goldman Sachs and Morgan Stanley - posted combined investment-banking revenue of $15.3 billion, a 20% increase from the same period a year earlier. Trading revenue of $39.5 billion was little changed.
“You’re getting more deals and bigger deals getting announced and banks are doing the underwriting for those,” Charles Peabody, a banking analyst at Compass Point Research & Trading, said Tuesday in a telephone interview. Also, with investors continuing to search for yield, corporations are tapping public debt markets rather than relying on loans, he said.
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