Barclays celebrates bumper fixed income revenue

Barclays is the latest to report a surge in fixed income activity, driving revenues across its markets business.

The markets business at Barclays saw income surge 9% to £5.2 billion in 2016, driven by an increase across fixed income products compared to the year prior.

Credit income soared 44% in 2016 to £1.1 billion compared to 2015 due to an overall strong performance in fixed income flow credit from market volatility and client demand, Barclays said.

The UK bank reported equities trading declined annual by 6% to £1.7 billion as a result of lower client activity across Asia. 

Large sell-side banks have reported higher sales across fixed income, driving trading revenues in 2016.

Earlier this week, HSBC’s global markets business saw sales increase by $353 million in 2016 to almost $15 billion, driven by a surge in fixed income trading.

Societe Generale’s fixed income, currencies and commodities trading income surged 16% in 2016, despite the group’s global markets revenues remaining relatively flat.

Fixed income trading boomed in 2016 compared to equities, where Societe Generale saw income fall 17% in 2016 compared to the year prior.

Barclays Group CEO, Jess Staley, said the bank has made “strong progress” against its restructuring plans which were announced last year.

“In short, we have accomplished a lot in a year… We can begin to move on from the restructuring of Barclays, shifting our focus solely to the future and in particular to how we can generate attractive, sustainable, and distributable returns for our shareholders,” he said.

Annual group profits before tax in 2016 grew 181% to £3.2 billion, compared to £1.1 billion the year prior.