US banks use record markets revenues to prep for tough H2

By Tyler Davies
16 Jul 2020

Huge capital markets revenues helped US banks stack up more provisions against loan losses in the second quarter, as they prepare to weather the economic impact of the coronavirus pandemic. But analysts warn that firms will not be able to repeat this trick in the second half of 2020, with trading and underwriting returns likely to climb down from their peaks.

JP Morgan set the tone for US bank earnings season on Tuesday, when it said that its corporate and investment bank (CIB) had delivered total revenues of $16.4bn in the second quarter — an all-time record.

The impressive performance was mostly due to the markets and securities ...

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