How Much Did FICC Trading Contribute To The Top Line Of The 5 Largest U.S. Investment Banks In 2015?
The strong recovery in global FICC (fixed income, currencies and commodities) trading activity over the second half of 2016 resulted in Goldman's FICC trading desk contributing almost 25% of the investment bank's total revenues for the year compared to 21% in 2015.
The FICC trading desks at each of the five largest U.S. banks reported an increase in their share of the bank's total revenues year-on-year. Notably, these operations were responsible for 16-19% of 2016 revenues for the diversified banking giants Citigroup and JPMorgan. To put this in perspective, JPMorgan's FICC trading revenues were double what Goldman reported for year, but its diversified nature meant that the bank also reported total revenues that were more than three times the figure for Goldman. This highlights the sheer magnitude of FICC trading operations at JPMorgan and Citigroup.
While FICC trading revenues are expected to remain upbeat in 2017, we expect their share in the top lines of Citigroup, JPMorgan as well as Bank of America to decline. This is because improving interest rates should boost net interest revenues for their retail and commercial banking divisions at a faster rate than FICC trading revenues are set to grow.
See the links below for more information and analysis about the 5 largest U.S. investment banks:
- How Have Securities Trading Revenues At The 5 Largest U.S. Banks Changed In The Last 5 Years?
- How Much Did The 5 Largest U.S. Investment Banks Make Through FICC Trading Activities In 2016?
- How Much Did The 5 Largest U.S. Investment Banks Make Through Equity Trading Activities In 2016?
- How Much In M&A Advisory Fees Did The 5 Largest U.S. Investment Banks Generate In 2016?
- How Much In Equity Underwriting Fees Did The 5 Largest U.S. Investment Banks Generate In 2016?
- How Much In Debt Origination Fees Did The 5 Largest U.S. Investment Banks Generate In 2016?
- How Much In Total Advisory & Underwriting Fees Did The 5 Largest U.S. Banks Earn In 2016?
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment / ask questions on the comment section
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to the full Trefis analysis for Goldman Sachs | JPMorgan | Morgan Stanley | Bank of America | Citigroup
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