Bank strategy and results
A sluggish fourth quarter for bond trading turned into a rout in December as clients were spooked by the US Federal Reserve, leaving bond trading revenues for 2018 down from 2017 and banks thankful for buoyant equities trading.
The largest US banks made more from advisory and underwriting in the fourth quarter than from fixed income trading for the first time at least since the financial crisis.
Societe Generale has become the second French bank to warn that revenues at its investment bank’s markets division slumped in the last quarter of 2018 as difficult trading conditions took their toll.
Investment bankers working at European firms are braced for a depressed bonus season after their US counterparts again took the share of the spoils last year. Deutsche Bank, in particular, looks likely to slash its bonus pool.