HSBC released its interim management statement last Friday but followed the Lloyds model of being light on real figures. The only numbers published were those the bank was obliged to publish: for its US operations. The management statement says that HSBC saw the market as being as subdued: “Global Banking and Markets’ performance in the quarter was robust, although trading activity was lower, reflecting seasonal factors and more subdued market sentiment and conditions.”
However, profitability is looking promising – although we’ll have to wait till next February for the numbers: “Global banking and markets pre-tax profits for Q3 2010 and the year to date remained strong by historical standards and were second only to last year’s exceptional performance.”
On Monday Commerzbank declared its figures for Q3. The bank stresses its focus on a “client-centric” strategy. It says: “At €422 million, trading profit rose over the second quarter of 2010 (€316 million) by one third, contrary to the industry trend”. Some of that is attributable to the Portfolio Structuring Unit, which “is responsible for managing down assets related to discontinued proprietary trading and investment activities which no longer fit”.
The Q3 trading profit of the Corporates & Markets segment (equity trading, corporate finance and fixed income and currency trading) “was clearly positive at €313 million – after €187 million in the second quarter – in particular thanks to the pleasing development in fixed income and currencies business for customers.”
Then Tuesday saw the release of Barclays Q3 numbers. Its FICC income is, as usual, comparable to the major US banks. Barclays reported Q3 income of £1.948 billion, compared with the Q2’s £2.253 billion. Barclays says: “Conditions remained challenging in the third quarter of 2010, with income also affected by a seasonal reduction in activity. Lower demand led to Q3 on Q2 declines in the fixed income, currency and commodities business of 14%.” The decline was even more marked when compared with Q3 2009’s £2.714 billion.
The Barclays report at least gives FX some credit in its comparison of the first nine months of 2010 with that of 2009: “Fixed income, currency and commodities top-line income of £6,896 million declined 37%, reflecting lower contributions from rates and commodities, partially offset by improved performance in foreign exchange.”
