- Wall Street investment banks had a rough 2017 as revenues slid to $150.4 billion — the lowest level since 2008.
- Struggles in trading plagued the banks, with fixed income, currency, and commodities (FICC) businesses especially hard hit.
- Business from investment banking underwriting and advisory services was the lone bright spot, but the substantial gains weren’t enough to compensate for the losses in trading.
Wall Street investment banks had a ghastly year in 2017, with revenues sinking to $150.4 billion — the lowest level since 2008.
That’s according to a new report from industry consultant and analytics company Coalition.
The dismal year was led by banks’ underperforming trading departments, which were plagued by low volatility. Revenues from fixed income, currency, and commodities (FICC) fell 11% to $68 billion and equities fell 4% to $41.8 billion, according to Coalition.
Business from investment banking underwriting and advisory services — on mergers and acquisitions and other transactions — increased substantially to $40.6 billion, a 10% increase from the previous year but not nearly enough to compensate for the losses in other lines of business.
Even with volatility jolting back to life thus far in 2018, investment banks face a tough road ahead to fattening revenues and reviving their trading operations.
Here’s a breakdown of the state of every line of business on Wall Street.