Bank strategy and results
The top five US banks continued to surge one year after the surprise election of Donald Trump unleashed hopes of tax cuts and regulatory reform. While neither has come to pass, the expectations are still keeping the stocks sailing.
The largest US banks are predicting revenue from bond and equity trading will fall about 15% in the fourth quarter from a year ago, putting trading revenues for the top five firms on course to end the year down 7% from 2016.
Credit Suisse is shifting its investment banking resources towards Europe ahead of what’s expected to be a substantial pick-up in deals in the region next year following years of subdued activity and false starts.
CVS Health’s proposed US$69bn acquisition of Aetna is shaking up rankings for M&A advisers in the last month of the year.