Here's a definitive guide to the state of each business on Wall Street, which is coming off a ghastly year

Alex MorrellFeb 16, 2018, 05.32 AM
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  • Wall Street investment banks had a rough 2017 as revenues slid to $150.4 billion - the lowest level since 2008.
  • Struggles in trading plagued the banks, with fixed income, currency, and commodities (FICC) businesses especially hard hit.
  • Business from investment banking underwriting and advisory services was the lone bright spot, but the substantial gains weren't enough to compensate for the losses in trading.


Wall Street investment banks had a ghastly year in 2017, with revenues sinking to $150.4 billion - the lowest level since 2008.

That's according to a new report from industry consultant and analytics company Coalition.

The dismal year was led by banks' underperforming trading departments, which were plagued by low volatility. Revenues from fixed income, currency, and commodities (FICC) fell 11% to $68 billion and equities fell 4% to $41.8 billion, according to Coalition.

Business from investment banking underwriting and advisory services - on mergers and acquisitions and other transactions - increased substantially to $40.6 billion, a 10% increase from the previous year but not nearly enough to compensate for the losses in other lines of business.

Even with volatility jolting back to life thus far in 2018 , investment banks face a tough road ahead to fattening revenues and reviving their trading operations.

Here's a breakdown of the state of every line of business on Wall Street.

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Investment banking revenues fell 4% to $150.4 billion, a $5.7 billion decline from 2016. A terrible year in FICC was the main culprit, with revenue falling $7.9 billion, or 11%.

Investment banking revenues fell 4% to $150.4 billion, a $5.7 billion decline from 2016. A terrible year in FICC was the main culprit, with revenue falling $7.9 billion, or 11%.

The year started off with strong momentum, as banks generated $82 billion in the first half — up 4% from the first half of 2016. But the second half was abysmal. Revenues in the back half of 2017 fell 11%, or $8.6 billion, below last year's mark.

The year started off with strong momentum, as banks generated $82 billion in the first half — up 4% from the first half of 2016. But the second half was abysmal. Revenues in the back half of 2017 fell 11%, or $8.6 billion, below last year's mark.

FICC businesses saw deep declines as they reckoned with record-low volatility. Revenues now sit $35 billion below 2012 levels — a 33% decline. Commodities fell 42% from 2016 to $2.5 billion, its lowest level since 2006. Securitization was the exception, increasing 15% thanks to the demand for complex financing solutions.

FICC businesses saw deep declines as they reckoned with record-low volatility. Revenues now sit $35 billion below 2012 levels — a 33% decline. Commodities fell 42% from 2016 to $2.5 billion, its lowest level since 2006. Securitization was the exception, increasing 15% thanks to the demand for complex financing solutions.

Equities revenues fell across the board, though only 4% from 2016. Cash equities fell to $9.2 billion, it's lowest level since 2006, as increased competition depressed margins.

Equities revenues fell across the board, though only 4% from 2016. Cash equities fell to $9.2 billion, it's lowest level since 2006, as increased competition depressed margins.

Wall Street's only bright spot in 2018, investment banking underwriting and advisory services climbed 10% from 2016 to $40.6 billion — the second-highest total since 2012. Equity capital markets led the way with a $1.9 billion, or 30%, increase from last year thanks to strong initial public offering and follow-on offering demand, especially in financials and technology. Debt capital markets were strong as well, buoyed by leveraged finance and high demand in the telecom sector.

Wall Street's only bright spot in 2018, investment banking underwriting and advisory services climbed 10% from 2016 to $40.6 billion — the second-highest total since 2012. Equity capital markets led the way with a $1.9 billion, or 30%, increase from last year thanks to strong initial public offering and follow-on offering demand, especially in financials and technology. Debt capital markets were strong as well, buoyed by leveraged finance and high demand in the telecom sector.

Banks continued to axe jobs, though less than in previous years. Headcount fell by 700, or 1%, to 52,200.

Banks continued to axe jobs, though less than in previous years. Headcount fell by 700, or 1%, to 52,200.

After two years of improvement, investment banking operating margins decreased two percentage points back to their 2014 levels. Job cuts and other cost-saving measures weren't enough to compensate for the slowdown in FICC, which fell four percentage points, and equities, which dropped one percentage point.

After two years of improvement, investment banking operating margins decreased two percentage points back to their 2014 levels. Job cuts and other cost-saving measures weren't enough to compensate for the slowdown in FICC, which fell four percentage points, and equities, which dropped one percentage point.
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