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Bank Revenues Plummet 17% In October And November According To Citi
“our reported results will be down in the high-teens, which is a lot, but… our core performance, in terms of year-over-year performance is 4% down”
- JPM CFO Marianne Lake
“the environment right now … we expect to be down this quarter and versus last year, we expect to be down in this business, but it's consistent with the opportunities that we see our customers are taking”.
- BAC CEO Brian Moynihan
It appears that the Q4 earnings season "bloodbath" predicted by harbinger Jefferies is right on track. According to Citigroup, Q4 is shaping up to be nothing short of a disaster for bank earnings. To wit:
Based on Dealogic, primary revenues over Oct-Nov were down 17% yoy, impacted by a sharp decline in lending revenues while underwriting revenue were mixed with stronger DCM, offsetting weaker ECM. Nonetheless, the advisory pipeline strengthened boding well for future revenues.
More details:
- Primary revenues decreased 17% yoy over Oct-Nov, notably impacted by weaker lending trends, per Dealogic industry data. Issuance revenues also declined while advisory revenues increased slightly.
- Loans revenues fell 61% yoy over Oct-Nov with leveraged finance particularly lower, given weaker market conditions [ZH: uhm, market hit all time highs in both October and November?!]. By contrast, DCM revenues increased 11% over the same period, primarily driven by higher IG issuance (+27% yoy), partially offset by lower HY, down 12% (Figure 31-Figure 32).
- Equity Issuance declined 16% yoy over Oct-Nov (Figure 30), due to tough comps and more challenging market conditions.
Which is odd: remember how everyone said banks are being punished for low volatility? Apparently the only thing worse for banks than zero/low vol was... high vol.
The sharp spike in UST volatility in mid-Oct as well as selloff in both credit & energy made for a more challenging backdrop.... Although a sharp spike in correlation and volatility drove a more challenging environment in equity derivatives, higher customer activity is likely to have made for performance consistent with prior quarters.... Although 4Q14 had its specific challenges, we believe that diverging central bank cycles are driving higher levels of volatility and customer activity.
And yet, if and when the time comes for another bank to be Lehmaned, which it shortly will as there is simply too much competition for financial services and declining demand, in a centrally-planned world, one can be sure that neither JPM, nor GS nor BAC or MS will be sacrificed.
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Did they exclude revenues from "extortion, looting, and manipulation"...?
The looting, extortion and manipulation will increase until morale improves.
pretty sad when the banks- those who do not follow the rules and can bend and twist them to their gain- actually lose profitability. they cant even do a good job at cheating.
That is the bankster's job.
Count other people's money until it's all gone.
That's ok...anybody still doing business with a TBTF deserves to lose their money.
Now we know why the Volker Rule and provisions of Dodd Frank were taken back in the current CRomnibus. These fuckers (TBTF banks) can't make money the old fashioned way by making loans, at least they can't make enough to support their ridiculous pay checks. I don't mind someone making billions if they create something, but these vampire squids take depositers money and risk it on crazy shit that 'financial engineers' model and which they promise will never implode...they must be narcissistic sociopaths because they believe they are so much fucking smarter than everyone else and that there shit desn't stink, and that they have thought of every possible influencer in their models and that black swans don't exist. (They said that about Chernobyl and Fukishima). These fuckers convince the dumb cocksuckers in congress that don't understand the fuzzy math that its all good. If it were all good why would the TBTF banks now need government guarantees for their losses? Shit is going bad fast if this is the only way banks can make real money.
I see bail outs in the future, or nailgun accidents depending on which bank we're talking about....
Did you say nail gun? I have a friend who specializes in that area. He will be buying me a sandwich before the year is over.
Don't count your sandiwches before they're made.
Yeah, I better shut up. My bet with Fonz came down to the last two trading days before it fell my way. Funnier than hell.
An ode to our criminal banks
As quarterly revenue tanks
Deflation is trending
Which lowers their lending
Their fraud is now firing blanks
You didn't make that sandwich.
It's alll good, old Yeller will just print them some moar.
I'm finally reading Neil Barofsky's "Bailout." Only a third of the way into it, and am already pissed off.
Who gives a shit? How's the share buy-back program going? Buy enough of them back and everything is fine.
Like a snake eating is tail, sooner or later there is nothing left to eat.
You have a nasty habit of thinking long-term. You might want to get some help with that.
+100. Comment of the day. NoDebt offing banksters one nail gun at a time
Surprise, surprise, surpise. Nobody saw it coming
And whos responsible for the derivatives when they blow up? The latest Omnibus budget bill transfered the liability to the taxpayer.
No worries, the stress tests can be manipulated so there is never a danger of default, unless, of course, there is.
ZIRP and NIRP forever bitches.
The costs of doing business (buying off the new Congress) will soar lowering profitability.
The best way to rob a bank is to own one.
Take the bank into insolvency and transfer all of it's reserves to offshore accounts.
Bonuses likely up over last year.
BRING ON THE WANKER BANKER LAYOFFS!!!
loan loss reserves to the rescue
bonus time!
I will be when it is ZERO!
Look at the top 3 for commodities, I wonder how they are doing now this month.
Foreign Bankers Rape Ukraine
Oil Price Crash Brings Big Profits For Swiss Banks, Investment Corps
Russia’s UniCredit 2014 Profits “In Line With Expectations, If Not Slightly Better” – France’s UniCredit
Sweden’s Nordea Bank Sees Profit of €40 Million From Russian Investments…..Russian Lending Rose 8.2%
Ruble Decline A Boom For Russia’s Mining and Metals Market – Deutsche Bank
E.U. Eases Sanctions On Russia’s Top Banks, Oil Companies…….Sanctions Meaningless
perhaps if the overpaid folks at the top of the payroll and consulting chain stopped looting the banks deposits, the bank would be profitable.
The fuckers borrow money at 0 percent and can't even make their capital work for them let alone ours.
Sooner or later the bubble will burst. Whether or not financials will lead is academic. Regardless, they will follow...
http://www.globaldeflationnews.com/anatomy-of-a-bubble-how-the-federal-r...
Im guessing really low interest rates discourages people from expanding their businesses. People are waiting for high rates.....................
CERTIFIED FINANCIAL PLANNER™ time.
What?! Money laundering isn't the high margin business it used to be?
Auggggh! Come on! They just can't show that on the books. Of course it's still profitable. What they can now show on the books though, is the $300 Trillion of derivatives that Citi and Jamie Dimon's bought and paid for politicos put the US Taxpayer on the hook for. It really did appear to be a big rush on their parts. My advice is to stay home and sharpen your knives. It's almost carving time.
FUCK.THE.BANKS!