Lower European Capital Market Revenues In Q2, Although Debt Underwriting Showed Some Improvement

DBRS Morningstar has published a commentary analysing Capital Market Revenues at European firms in Q2.

Key highlights include:

• Capital Markets revenues at European Firms were weaker in Q2 2023 both annually and sequentially, largely driven by lower Equity and Fixed Income Sales & Trading.

• However, we consider these revenues as resilient as they were down from a strong quarter a year ago.

• Debt underwriting revenues continued to show some recovery albeit still muted.

“For the remaining part of the year we continue to expect good performance in trading revenues but revenues will likely be lower than in the previous year’s quarter” said Maria Rivas, Senior Vice President, Global Financial Institutions at DBRS Morningstar. ”However, we expect debt underwriting revenues to recover slightly in coming quarters, although revenues will likely remain subdued for equity underwriting and advisory given the still uncertain operating environment and until there is further clarity on the interest rate path”.