NEW YORK, April 15 (Reuters) – Wall Street’s bosses are finally seeing signs of a broader pickup in investment banking, but they are not cheering too loudly just yet.
Investment banking divisions showed robust growth in the first quarter for the largest U.S. banks, which reported surging revenues and fees. Capital markets led the comeback, executives said.
“We have strong backlogs and momentum in every part of the firm,” Morgan Stanley’s new CEO Ted Pick told analysts on a conference call after his first quarter at the helm. “While the pipelines are healthy, there remains a backdrop of economic and geopolitical uncertainty.”
Morgan Stanley’s investment banking revenues jumped 16% to $7 billion in its first quarter, it reported on Tuesday, sending shares up more than 3%.
At Bank of America, fees from investment banking surged 35% to $1.6 billion, but its stock fell more than 4% as it set aside more money to cover souring loans.
“We’re just happy to see the investment banking activity improve,” BofA’s finance chief Alastair Borthwick told journalists. He cited efforts to deepen is presence in middle markets and boost collaboration between corporate and commercial bankers.
Source: REUTER
