American investment banks are dominating.
After US banks across Wall Street reported strong third-quarter results, some analysts questioned whether the uptick in revenues was a result of healthier markets or US banks gaining more market share.
Now the results are in from their European rivals and the picture is pretty clear – European banks are losing share to their US counterparts, big time.
Credit Suisse’s Susan Roth Katzke painted the picture in a recent note to clients.
The trend is most pronounced in equities trading and investment banking, though it’s clearly evident in fixed income trading too, she found.
Have a look.
Here's total trading revenue market share. Look at the divergence.
There is a similar divergence in investment banking.
Here's the trend in fixed income trading.
And an even wider divergence in equities trading.