Investment banking revenues decline in Q1 2019
30 May 2019 London
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Investment banking revenues have declined in Q1 2019, according to a new report by Coalition.
The trend, indicated in Coalition’s Interactive Brokers Index, was mainly driven by the absence of large one-off events, subdued client activity in Fixed Income Clearing Corporation (FICC) and weak issuance activity in the Investment Banking Division.
The report found that in equities, the impact of normalisation in derivatives coupled with lower revenues prime services and cash was partially offset by improvement in futures and options.
Equities underperformed due to the absence of one-off results in derivatives and weaker results in prime services and to a lower degree, cash.
Prime services were negatively impacted by client deleveraging, lower client activity and a decline in trading results.
Cash equities declined on the back of lower volumes and margin compression. Regionally, Asia Pacific (APAC) outperformed relative to Americas and Europe, the Middle East and Africa (EMEA).
The report also indicated that the decline in FICC securitisation was driven by weaker client activity and increased competition.
Cash equities revenues declined due to lower volumes across regions led by EMEA and APAC, while the Americas performed relatively better.
The trend, indicated in Coalition’s Interactive Brokers Index, was mainly driven by the absence of large one-off events, subdued client activity in Fixed Income Clearing Corporation (FICC) and weak issuance activity in the Investment Banking Division.
The report found that in equities, the impact of normalisation in derivatives coupled with lower revenues prime services and cash was partially offset by improvement in futures and options.
Equities underperformed due to the absence of one-off results in derivatives and weaker results in prime services and to a lower degree, cash.
Prime services were negatively impacted by client deleveraging, lower client activity and a decline in trading results.
Cash equities declined on the back of lower volumes and margin compression. Regionally, Asia Pacific (APAC) outperformed relative to Americas and Europe, the Middle East and Africa (EMEA).
The report also indicated that the decline in FICC securitisation was driven by weaker client activity and increased competition.
Cash equities revenues declined due to lower volumes across regions led by EMEA and APAC, while the Americas performed relatively better.
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