„ FRONT STORY RESULTS

Goldman sees FICC revival

Q2 trading decent for big 5 US banks, especially equities

"ONDûTRADINGûISûBACKû
ûMAYBEû!CROSSûTHEûlVEû
LARGESTû53ûINVESTMENTûBANKS ûlXEDûINCOMEû
trading is again looking like it will shake off
AûMULTI
YEARûSLUMP ûALTHOUGHûTHEREûHAVEû
been false dawns before.
(ALFWAYûTHROUGHûTHEûYEARûREVENUEûFROMû
lXEDûINCOME ûCOMMODITIESûANDûCURRENCYû
trading was up 4% compared with last year
across GOLDMAN SACHS ûMORGAN STANLEY ûJP
MORGAN ûCITIGROUP and BANK OF AMERICA MERRILL
LYNCHû)TûWASûUPûûFROMûTHEûREVENUEûTROUGHû
in 2016.
4HEûRISEûWASûNOTûACROSSûTHEûBOARD û
HOWEVERû'OLDMANSû&)##ûREVENUESû
rebounded off an abysmal performance last
YEAR ûSURGINGûûFROMûAûYEARûAGOûINûTHEûlRSTû
SIXûMONTHSûOFûTHEûYEAR
2IVALSû"!-,ûANDû#ITIûSTRUGGLED ûWITHûEACHû
bank posting 7% falls from a year ago and
THEIRûWEAKESTûSIXûMONTHû&)##ûPERFORMANCEû
INûMOREûTHANûlVEûYEARS
-ORGANû3TANLEYûCONTINUEDûTOûOUTPERFORMû
AFTERûLIMITINGûITSûBONDûTRADINGûGROUPSûABILITYû
TOûWREAKûHAVOCûONûQUARTERLYûRESULTSû4HEû
BANKSû&)##ûREVENUESûWEREûUPûMOREûTHANû
ûINûTHEûlRSTûHALFû*0û-ORGANûWASûUPû
nearly 8%.

45% SURGE
'OLDMANûSAIDûLASTûWEEKûITSû&)##ûTRADINGû
REVENUEûSURGEDûûFROMûAûYEARûAGOûTOû
53BNûINûTHEûSECONDûQUARTERûSEEûCHART 
4HATûREmECTEDûHIGHERûREVENUESûACROSSû
MAJORûBUSINESSES ûINCLUDINGûSIGNIlCANTû
INCREASESûINûCOMMODITIES ûINTERESTûRATEû
PRODUCTSûANDûCREDITûPRODUCTS ûSAIDû'OLDMANû
CHIEFûlNANCIALûOFlCERû-ARTYû#HAVEZ
“Our clients responded to a stronger US
DOLLAR ûWEAKERû%-ûCURRENCIES ûHIGHERûOILû
PRICESûANDûAûDIVERGENCEûBETWEENû53û
INVESTMENTûGRADEûANDûHIGHûYIELDûSPREADS vû
#HAVEZûSAID

"!-,Sû&)##ûREVENUEûINûTHEûSECONDû

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BYûIMPROVEMENTSûACROSSûMACRO

RELATEDû

PRODUCTSûPARTIALLYûOFFSETûBYûWEAKNESSûINû

credit products.

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ROSEûûTOû53BNûINûTHEûQUARTERûBOOSTEDû

BYûSTRONGûCLIENTûACTIVITYûINû&8û4HEûBANKûSAIDû

its credit businesses held up despite

widening credit spreads but rates were

impacted by range-bound yields.

EQUITIES BATTLE

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ISûHEATINGûUPûASûALLûOFûTHEûLARGESTûBANKSû

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OFû53BNûmATûFROMûAûYEARûAGO

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WASûUPûûALTHOUGHûTHATûWASûTHEû

smallest half-year rise across the big

lVEûBANKS

-ORGANû3TANLEYûCONTINUEDûTOûDOMINATEû

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POSTINGûREVENUESûOFû53BNûWHICHû

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BUSINESSûOVERûTHEûPASTûûMONTHS

Philip Scipio

0EOPLE

&-ARKETS

12

Goldman

Sachs is riding

high in ECM in Latin

America and could

take top spot there

for the first time in a

decade

17

The New York

Fed’s new

secured overnight

financing rate, or

SOFR, gains traction

as an alternative to

replace Libor



Natalia

Ermolitskaya

is one of four new

hires by Exotix Capital

as it expand its fixed

income presence in

Latin America, Russia

and elsewhere

“Our clients responded to a

stronger US dollar, weaker EM

currencies, higher oil prices

and a divergence between US

investment grade and high yield

spreads”

Source: Company results, IFR calculations

%

-1 0

0

10

20

30

40

50

JPM Citi BAMLGoldman MS US average

 FICC  Equities  Advisory/underwriting

SOLID Q

Q2 REVENUE CHANGE VS Q2 2017