People

&Markets

13

CEO Bill

Winters said

improvements in India,

South Korea, Indonesia

and UAE are helping

StanChart’s drive to lift

returns

18

Malaysia’s

CIMB culls its

investment banking

team in Hong Kong as

it shift focus in response

to stiff competition in

North Asia

16

Citigroup is

cutting staff in

equities and appears

to have lowered its

ambitions about

taking on the top

three

„ FRONT STORY RESULTS

CS, Barclays trading outpaces rivals

Mixed Q2 shows not all European banks being left behind

CREDIT SUISSE, BARCLAYS and BNP PARIBAS all
reported increases in bond trading revenues
in the second quarter to underpin decent
investment bank results and ease concerns
European banks are getting left behind by
US rivals.
#REDITû3UISSEûSAIDûlXEDûINCOMEûSALESûANDû
trading revenues in its global markets
DIVISION ûWHICHûEXCLUDESû!SIA ûWEREû
3&RMûINûTHEû!PRIL
*UNEûQUARTER ûUPûû
from a year earlier.
"ARCLAYSûlXEDûINCOME ûCURRENCYûANDû
COMMODITIESûREVENUESûWEREûaMûINûTHEû
QUARTER ûUPûûFROMûAûYEARûEARLIERû4HATû
included a £166m investment gain from the
)0/ûOFûTRADINGûPLATFORMû4RADEWEB ûHOWEVER û
and stripping that out, FICC revenues were
UPûûONûTHEûYEAR
BNP Paribas said FICC revenues were up
ûFROMûAûYEARûEARLIER
Credit trading desks had a good quarter,
and Credit Suisse said it also did well in
SECURITISEDûPRODUCTS ûESPECIALLYûASSETûlNANCEû
and agency trading. FX revenues were
weaker, largely due to low volatility.
!LLûTHREEûOUTPERFORMEDûTHEûûDECLINEûINû
&)##ûREVENUESûREPORTEDûBYûTHEûBIGûlVEû53û
BANKSûFORû1 ûANDûANûûDROPûATûDEUTSCHE BANK.
Barclays said it has been winning FICC
market share for the past 18 months.
Berenberg analyst Peter Richardson said
that should reassure investors.
h4HISûBUSINESSûOCCUPIESûANûATTRACTIVEû
POSITIONûINûTHEûPROlTABLEû53ûMARKETûANDûISû
gaining market share,” Richardson said.
“Rather than being ‘just another
underperforming European investment
bank’ as some investors believe, we think
this demonstrates Barclays’ ability to
credibly challenge stronger US peers.”
Credit Suisse also outperformed in
EQUITIES ûWHEREûITûBROUGHTûINû3&RM ûUPû

ûFROMûAûYEARûEARLIERûASûHIGHERûINCOMEûINû

prime services and cash trading offset

weaker derivatives results.

Barclays and BNP Paribas fared less well,

ANDûEACHûREPORTEDûAûûDROPûINûEQUITIESû

from a year earlier. Barclays said it had a

tough comparison against a record quarter

INû

EQUITIES STALL

Equities trading was softer for most of the

industry after a good run the previous year.

53ûBANKSûREPORTEDûANûûDROPûSIMILARûTOûTHEû

decline at UBSûONEûOFûTHEûTOPûEQUITIESûlRMS

Deutsche Bank’s equities revenues

PLUNGEDûû

ûUNSURPRISINGûGIVENû

SPECULATIONûLATERûCONlRMEDûTHATûITûWOULDû

EXITûEQUITIESûCOMPLETELY

!DVISORYûANDûDEBTûANDûEQUITYû

UNDERWRITINGûWASûALSOûMIXEDûINû%UROPEû

Barclays brought in £698m in banking fees,

DOWNûûFROMûAûYEARûEARLIERûBUTûBETTERûTHANû

AûûDROPûACROSSû53ûRIVALS

Credit Suisse said its global advisory and

UNDERWRITINGûREVENUESûINCLUDINGûFROMû!SIAû

WEREû53MûINûTHEûSECONDûQUARTERûDOWNû

ûFROMûAûYEARûEARLIER

4HATûFOLLOWEDûAûWEAKûlRSTûQUARTERûFORû#3Sû

investment banking and capital markets

ARMû"UTûCHIEFûEXECUTIVEû4IDJANEû4HIAMûSAIDû

he had no plans to make big changes.

“For three years, it outperformed the

industry. We are not going to restructure

)"#-ûBECAUSEûITûHADûTWOûDIFlCULTûQUARTERSû

4HATSûNOTûHOWûWEûRUNûTHEûBANKvû4HIAMû

told reporters.

4HIAMûSAIDûTHEûBANKûISûINVESTINGûINû)"#-û

recruiting bankers and increasing

technology spending. He also played up the

BENElTSûOFûHAVINGûANûINVESTMENTûBANKûFORû

the core wealth management business.

"ARCLAYSûSAIDûITûCUTûMOREûTHANûûJOBSû

in the second quarter, including in the

investment bank, but it doesn’t plan any

FRONT

OFlCEûCUTS

Steve Slater

* FICC revenues strip out gains made from the sale of TradeWeb

** BNP Paribas does not release comparable number for M&A advisory and underwriting

Source: Company results, IFR calculations; not all divisions directly comparable

0

5

10

15

20

FICC* Equities Advisory/underwriting

US big 5 UBS Deutsche CS Barclays BNPP** SG Europe avg

banks avg

EUROPEAN BANKS: SOME Q2 BRIGHT SPOTS; Q2 REVENUES % CHANGE VS YEAR AGO