The biggest banks in the US are expected to see big boosts in quarterly revenue from their trading arms after President Trump’s tariff war forced investors to make changes in their portfolios.
JPMorgan Chase, Citigroup, Goldman Sachs and Bank of America are expected to collectively bring in about $26.4 billion in revenue from equities and fixed income trading on their upcoming earnings report, an 11% gain on the previous year, The Sunday Times reports.
[adinserter block="1"]Says Saul Martinez, banking analyst at HSBC,
“I think it’ll be a good quarter… There may be some upside to estimates and upside to some of the guidance figures that the banks gave, and it certainly feels like on the equity side, there’s still good momentum.
I do think you know the results in this quarter and last quarter do raise questions about the sustainability of this kind of sales and trading.”
Betsy Graseck, a banking analyst at Morgan Stanley, says the bank sees investment banking revenue in Q2 being better than expected and management teams to “point to pipelines building.”
Another unnamed senior Wall Street executive tells The Times,
“Anybody that’s in the market-making business, providing people with instantaneous liquidity, is going to benefit. Stocks went down, bonds went down, and the currency went down, and we just saw derisking.”
In the first quarter, the Federal Deposit Insurance Corporation (FDIC) said that financial institutions in the US reported a return of 1.16% and net income of $70.6 billion.
The FDIC said the rise in income was a jump of $3.8 billion, or 5.8%, from the previous quarter.
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