Global Investment Banks Revenue Now $26.1bn
The five largest global investment bank revenue hit $26.1billion last year, three per cent down, according to data gathered by LearnBonds, an international expert financial news service.
The data said trade tensions, slow growth, and low-interest rates all left their mark on the world’s largest banks last year, affecting the investment banking revenue they racked up.
It said JP Morgan, ranked as the world’s largest bank, made almost $6.9billion profit from investment banking last year.
Last year, the 12 largest US and European banks generated $77.5billion from investment banking, or $3billion less compared to the previous year, according to Wall Street Journal and Dealogic data.
As market leader, JP Morgan gained 8.9per cent market share, a 0.3 per cent rise compared to the year before. But investment banking income at the US giant dipped by more than $50million between 2018 to 2019.
Although the revenues of the world’s top investment banks plunged to a 13-year low in the first half of 2019, JP Morgan still managed to produce record income in the fourth quarter.
The record earnings at the end of the last year were driven by the bond trading revenue, which surged 86per cent to $3.4billion, surpassing the $2.6billion estimate by roughly $800million.
Chief Executive Officer of the JP Morgan, Jamie Dimon, said: “JP Morgan Chase produced strong results in the fourth quarter of 2019, capping off a solid year for the firm where we achieved many records, including record revenue and net income.
“While we face a continued high level of complex geopolitical issues, global growth stabilised, albeit at a lower level and resolution of some trade issues helped support client and market activity towards the end of the year.”
Goldman Sachs, the second-largest investment bank in the world, ended last year with $5.8billion in investment banking revenue and a 7.5per cent market share.
Compared to a strong 2018, the Wall Street institution suffered a near seven per cent slide in revenue from investment banking services.
This fall reflected lower earrings in underwriting and financial advisory, partially offset by higher revenues in corporate lending during 2019.
However, the bank ended the year with $36.6bn in overall net revenues, including the fourth-quarter revenues of $10bn, its highest quarter since 2007.
Goldman Sachs Chairman and Chief Executive David Solomon, said: “Strong performance in the fourth quarter helped us to deliver solid results for the year while continuing to invest in new businesses. We aim to drive higher returns in the future.”