Investment banking revenues plunge to 13-year low

32% decline in equities revenues at Deutsche Bank

Revenues at the world’s top investment banks plunged to a 13-year low in the first half of 2019 as geopolitical tensions, slowing growth and low interest rates compounded a structural decline that set in after the financial crisis. The 12 biggest US and European investment banks generated $76.8bn in revenue from their trading and advisory operations during the six-month period, down 11 per cent from 2018.

It was the slowest first half since 2006, according to the latest data from industry monitor Coalition. The banks had individually reported poor second-quarter earnings for their markets and investment banking divisions, including an 18 per cent fall in fixed-income revenues at Morgan Stanley and a 32 per cent decline in equities revenues at Deutsche Bank, which is in the process of shutting its stock trading business.

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