Be the first to like this
This note provides a brief, high-level snapshot of how pre-tax profits of Top 13 investment banks evolved vis-à-vis peers since the original ‘Crunch’. Product- and/or regional-level detail is available on request.
The two banks that most improved their share of the peer group profit pool are J.P.Morgan and UBS. Uniquely among its peers, JPM improved its ranking vis-à-vis peers in all three major areas of business: primary issuance & advisory, FICC and Equities sales & trading. UBS performed strongly in primary activities, and has upped its share of Equities profit pool by 50% since 2011.
Bank of America Merrill Lynch was knocked off the #1 spot and has been losing ground in recent years, especially in FICC. Similarly, Deutsche Bank‘s decline is largely due to underperformance in FICC.
Goldman Sachs lost some ground in recent years; it appears to be struggling in the low-risk/client-centric environment.