According to Coalition, an analytics company, performance in trade finance and cash management dropped from USD 18.3bn in the first half of 2015 to USD 18bn in 2016. The research the performance of Bank of America Merrill Lynch, Barclays, BNP Paribas, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JP Morgan, Morgan Stanley, Société Générale and UBS.
Trade finance scored a revenue drop of 9% from USD4 bn to USD 3.7bn, largely reflecting reduced volumes. Cash management was more stable with a 1% improvement from USD 14.3bn to USD 14.4bn.
Trade finance decline was influenced by reduced volumes and volatility within commodities trading. Asia saw the biggest decline, with some decline in the Emea region too. Supply chain finance was the only area with resilient performance within trade finance, according to Globe Trade Review.
Revenues in the corporate investment banking (CIB) sector also continued to decrease, with a 12% drop year on year. IBD saw the biggest down fall, with a 20% decline in revenue, while equities, FICC, and securities services experienced 18%, 11% and 5% reductions respectively.
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