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\u00a0|\u00a0 Banks are on track to report another strong quarter in sales and trading after US president Donald Trump\u2019s chaotic tariff announcements in April rocked financial markets and triggered a flurry of client activity.<\/p>\n Banks\u2019 markets revenues increased 10%\u201315% in the second quarter from the previous year, according to data provider Coalition Greenwich, as trading desks continued to thrive in the high-volatility environment that has characterised the first half of the year.<\/p>\n Equities trading divisions led the charge, with Coalition Greenwich projecting a 20%\u201325% annual increase in revenues. That comes on the back of several banks reporting a record quarter for equities trading revenues in the first three months of the year. Fixed income trading, meanwhile, is expected to register a more modest 5%\u201310% growth in the second quarter following an uptick in foreign exchange and interest rate trading.<\/p>\n \u201cQ2 was another strong quarter for banks in sales and trading, with equities and macro products doing particularly well,\u201d said Angad Chhatwal, head of fixed income, currencies and commodities at Coalition Greenwich. \u201cBanks benefited from a notable increase in client trading activity and widening in bid-ask spreads around the April tariff volatility, with some likely to outperform because of their business mix.\u201d<\/p>\n The trading bonanza contrasts with a frustrating period for dealmaking<\/a>. Global investment banking fees declined 3% in the first half as strong debt capital markets activity was offset by more sluggish M&A and ECM activity.<\/p>\n However, the market volatility that put the brakes on mergers and IPOs provided a bonanza for banks’ trading desks, which have seen record volumes of transactions across various asset classes. Equities trading has been at the forefront of this expansion after several banks reported record revenues in 2024. Many banks are continuing to invest in this space, particularly in businesses such as prime brokerage that have grown rapidly amid huge demand from hedge funds for financing.<\/p>\n \u201cI think we can gain market share in markets,\u201d Troy Rohrbaugh, co-chief executive for the commercial and investment bank at JP Morgan, told investors in May. \u201cWe continue to see the benefits of our investment in equities. We’re growing … and deepening our client franchise across the whole space.\u201d<\/p>\n
\n Christopher Whittall<\/a><\/p>\n