Big Banks: A Look At The Key Segments

Here is a look at the direction of estimates aggregated by the key capital markets segments for the bulge-bracket US investment banks: J.P. Morgan (NYSE: JPM), Goldman Sachs Group Inc. (NYSE: GS), Morgan Stanley (NYSE: MS), Citigroup Inc. (NYSE: C), and Bank of America Corp. (NYSE: BAC).

The mixed direction of expectations around these key business lines may reflect the current market sentiment around the macro environment.

• Equity Underwriting and Advisory estimates show declines since the beginning of the year. Given the uncertainty around tariffs, the outlook has become more difficult for senior leaders to predict, likely putting deals and transactions on hold.
• Debt Underwriting has been relatively stable. The stability of debt underwriting may indicate that there is an underlying stability in market conditions and the creditworthiness of borrowers.
• Trading shows an uptick in estimates since last fall. The persistent macro uncertainty seems to have fueled volatility in the capital markets and increased trading activity which may be supporting an increase in expectations.