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Financials Credit Analyst

Hank Calenti, CFA

CreditContinuum

Credit

Executive Summary: US investment banking Q1 results set us up for an interesting European bank earnings season. After reserve releases, investment banking revenues were the second largest driver of net revenues as compared to the prior year.The upcoming set of European bank results may be as good as it gets for this year. As each bank may release reserves, investment banking specialization may be the differentiating factor in terms of revenue results.With US banks noting that their more macro-related trading activities were lower than in the prior year, we consider which European banks may report similar activity. We suspect that the French institutions, Société Générale in particular, could benefit most from their investment banking results provided their real economy activity continues to strengthen.

Executive Summary: US investment banking Q1 results set us up for an interesting European bank earnings season. After reserve releases, investment banking revenues were the second largest driver of net revenues as compared to the prior year.The upcoming set of European bank results may be as good as it gets for this year. As each bank may release reserves, investment banking specialization may be the differentiating factor in terms of revenue results.With US banks noting that their more macro-related trading activities were lower than in the prior year, we consider which European banks may report similar activity. We suspect that the French institutions, Société Générale in particular, could benefit most from their investment banking results provided their real economy activity continues to strengthen.

US Investment Bank Results and Upcoming European Bank Earnings

Asia High Yield Bond Index

US Investment Bank Results and Upcoming European Bank Earnings