BAML sees strong fixed income in Q2 as equities wane

BAML posted strong fixed income revenues but its equities business fell back.

Bank of America Merrill Lynch (BAML) has become the latest to reveal a surge in fixed income revenues.

BAML posted a considerate 27% increase in fixed income trading revenues in the second quarter this year, compared to the same period last year.

Its equities revenues were down 8%, though overall sales and trading revenues increased 14% in the second quarter compared to 2015.

Brian Moynihan, chief executive officer at BAML, said: “We had another solid quarter in a challenging environment.”

He added: “We continued to invest in core growth areas and to manage expenses, which were down 3% year over year to a level not seen since 2008.”

Second quarter revenues across investment banks have highlighted a significant increase in fixed income trading and revenues.

JP Morgan’s markets and investor services business unit saw a 23% year-on-year increase in Q2, boosted by its strong fixed income results which saw revenues for that unit increase by 38%.

Higher revenue in rates, currencies and emerging markets, credit and securitised products in the second quarter, saw the firm’s fixed income revenues surge 35% to almost $4 billion.

Similarly, Citigroup’s markets and securities service business posted a surge in revenues, following a successful second quarter in fixed income trading.

Total revenues across the markets business were up 10% this quarter compared to the second quarter last year, bolstered by a 14% increase in fixed income revenues.