Fitch: Weak FICC Results Limit Large U.S. Banks' Capital Markets Growth

Link to Fitch Ratings' Report: U.S. Banking Capital Market Update: 4Q13 (Weak FICC Results Limit Overall Revenue Growth)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=732535

Revenues from fixed income, currency and commodities trading (FICC) activities were challenged for the large U.S. banks and securities firms in 4Q13, limiting the overall growth in capital markets revenues, according to a special report published today by Fitch Ratings.

Despite these challenges, aggregate capital markets net revenues moderately increased in 4Q13, and remained a significant contributor to consolidated revenues at 29% of the total. For the Global Trading and Universal Banks (GTUBs) based in the U.S., capital markets revenues comprised 22% to 62% of total revenues, which is dependent on contributions from other business segments.

Looking toward 2014, lingering regulatory, economic and political uncertainty will be key drivers of activity levels. For example, Fitch believes that if the upcoming U.S. debt ceiling is not addressed in a timely manner, the resultant market uncertainty could contribute to a further reduction in capital markets activity in the first quarter. Conversely, a more substantial improvement in economic conditions and market sentiment could spur increase volumes and M&A activity.

The full 'U.S. Banking Capital Market Update: 4Q13' is available at 'www.fitchratings.com.'

Additional information is available at 'www.fitchratings.com'.

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