The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.
BANKING

Investment banking: Equity revenues may rise 20%

The equities business at leading investment banks is booming, according to a report from the Boston Consulting Group.

Revenues globally are expected to grow by 20% to 22% this year to reach $92.4 billion, up from $76.4 billion in 2006.

The boom is being driven by the strong performance of stock markets globally and the continued strength of leveraged buyout activity. The S&P 500 rose 13.6% in 2006, the Nikkei by 2.9% and the FTSE100 by 16.3%.

Global equity trading revenues, which suffered terribly during the bear market years that followed the dotcom bust in 2001, grew 40% in 2006 to reach a total of $767 billion.

Equity trading revenues, boosted by equity derivatives activities, which are expected to grow by 15%, are expected to grow by a further 26% in 2007, outpacing the growth in equity trading volumes globally, which are projected to grow at a comparatively modest 17%.

Proprietary trading revenues are expected to add $10.5 billion to equity revenues in 2007, up 15% from 2006.

Global investment banking pre-tax profits

Source: Boston Consulting Group


The potential to earn higher returns from investments than advisory work has made proprietary trading more attractive to investment banks.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree