JP Morgan, Citi, BAML, GS: Q3/14 results: Strong performance in Markets – Fixed Income division

JP Morgan kicks off the Q3/14 reporting season with a strong set of results, with net income at $5.6B.

The Markets & Investor Services revenue was particularly strong with Markets revenue of $4.7B, up 1% YoY, primarily driven by:

Fixed Income Markets of $3.5B, up 2% YoY, driven by stronger revenue in currencies and emerging markets

Equity Markets of $1.2B, down 1% YoY, primarily on lower derivatives revenue

The results confirm JP Morgan as #1 in Total Markets revenue share of top 10 investment banks

Full JP Morgan results here and here, below are summary of results from Citigroup, Bank America and Goldman Sachs.

Citigroup also released Q3/14 results today, with net income of $3.4B on revenues of $19.6B.

The Institutional Clients Group (ICG), which houses the Fixed Income business saw revenues rise 14% to $8.4B, with

Markets & Securities Services revenues up 8% on a year ago at $4.3B

Fixed Income Markets revenues of $3B up 5% YoY , reflecting strength in securitized products, and an improvement in rates and currencies

Equity Markets revenues of $763mln up 14% YoY, reflecting improved client activity in derivatives

Full CitiGroup results here and here

Bank of America just reports (Wed 15th Oct), with total income before litigation costs of $21.4B. But once expenses including $4.9B of litigation are included, Net income drops to $0.2B.

Global Markets: Sales & Trading Revenues which includes FX and Fixed Income were $3.3B, up 9% from 3Q13

FICC revenue increased $218m, or 11%, from 3Q13, driven by strong results in currencies due to increased volatility in the period, as well as gains in mortgages and commodities

Equities revenue increased $57MM, or 6%, from 3Q13 on higher client financing revenues

Full BofA results here


Goldman Sachs Q3/14 results, with net income of $2.4B on revenues of $8.39B.

The Institutional Client Services (ICS), which houses the Fixed Income business saw revenues rise 32% to $3.77B, with net revenues of:

Fixed Income, Currency and Commodities Client (FICC) execution was $2.17B, and 74% higher with increase in net revenues due to significantly higher net revenues in currencies, commodities, interest rate products and mortgages, partially offset by significantly lower net revenues in credit products.
During the quarter, FICC Client Execution continued to operate in an environment characterized by generally low levels of activity, although during the latter part of the quarter, market-making conditions were generally more favorable.
Equities were $1.6B net revenues, net revenues in equities client execution were lower, reflecting a decrease in cash products, and securities services net revenues were essentially unchanged. Commissions and fees were slightly higher compared with the third quarter of 2013. During the quarter, Equities operated in an environment characterized by continued low volatility levels and generally lower market volumes in the United States and Europe compared with
the second quarter of 2014.

Full Goldman Sachs results here



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