Banking groups pushing to drive shareholder value must consider the Investment Banking and Markets division and its contribution. With regulation coming closer to “endgame” and a structural shift in the macroeconomic environment banking, executives have to take purposeful actions today to position the Investment Banking & Markets franchise for the future. Today Expand Research and the Boston Consulting Group (BCG) present a collaborative whitepaper titled ‘Investment Banking & Market Update’ that looks at both market trends and potential considerations for decision makers.
Summary of key trends for H1 2023:
- Origination & Advisory – Overall wallet contracted ~12% YoY, following on from significant contractions already in 2022. M&A pool contracted the most, with ESG DCM showing the most resilience.
- Equities – Overall revenue pool contracted ~13% YoY driven by lower volatility in secondary markets, softer intermediation and reduced client flow activity. Prime financing and securities lending strongest performers.
- FICC – Overall revenue pool contracted ~6% YoY, driven by lower revenues in Macro products (Rates & FX), offset by growth in spread products (Credit), and uptick in hedging activity from corporates.
