Magazine article American Banker

Big Banks Post Mixed Results as Trading Revenues Stay Down

Magazine article American Banker

Big Banks Post Mixed Results as Trading Revenues Stay Down

Article excerpt

Trading revenue at the money-center banks rebounded after a miserable first quarter, but the second-quarter results still paled in comparison to last year's numbers.

"Last year was an extraordinary year for profits, but the first half of this year has been extraordinarily weak. It reflects the ongoing rolling recession in the bond markets across the globe," said Tanya Azarchs, an analyst at Standard & Poor's Corp.

Benoit Jadoul, vice president of foreign exchange marketing at Chase Manhattan Corp., said volatility in the financial markets made some customers wary of making trades.

"It was a difficult trading environment in the second quarter," he said. "We really didn't have any yardstick to go by. The markets were very fickle. A trending market is easier for a proprietary trader."

Substantial Gains

BankAmerica Corp. Wednesday reported second-quarter trading profits of $106 million, up from $74 million in the first quarter. B of A had reported trading income of $172 million in the second quarter of 1993.

Citicorp also gained substantially, with earnings of $159 million in the second quarter, up from a dismal $71 million in the first. In the second quarter of 1993, Citicorp reported $572 million in trading income.

Second-quarter trading income at Chemical Banking Corp. rose to $203 million, from $185 million in the first quarter. The bank's second-quarter 1993 trading revenue totaled $298 million.

First Chicago Banking Corp. reported a second-quarter trading profit of $37 million, following a first quarter in which it lost $25 million in trading. …

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