UBS equity revenue results in Q3, buoyed by big gains from increased equity activity, have pushed it ahead of BNP Paribas, HSBC and Barclays to the top of the pack – and made it the only real European competitor to US incumbents.
UBS investment bank saw strong growth in Q3 2024, with global markets led by US$1.4 billion in equities revenue. During the company’s results call, Todd Tuckner, group chief financial officer, noted that the 33% increase in equities revenue was “supported by higher constructive volatility. Our equity derivatives and cash equities businesses each delivered their best third quarter on record.”
A USD$135 million gain related to the sale of investment in an associate also contributed to growth, UBS’s results added.
On broader performance, Tuckner continued, “revenues in markets increased by 31% to US$1.9 billion, driven by client activity and the strength of our expanded franchise. We saw increases across all regions and notably in the Americas, where revenues were up by around 60%.”
Compared to US banks’ Q3 results, UBS is the only European bank able to compete with the equity revenues of its transatlantic counterparts. Citi reported US$1.2 billion over the quarter, and Bank of America US$1.545 billion; both considerable YoY gains similar to those seen at UBS.
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At BNP Paribas, total global markets revenue was US$2.2 billion over the quarter, up 12.4%. Equity and prime services revenues were up 13.2% YoY to US$891 million, an increase the bank said was driven by greater activity in prime services.
By contrast, in Q3 combined equities and financing revenue (US$506 million) at UBS Investment Bank was US$1.938 billion.
HSBC Global Banking and Markets saw a significant increase in equities revenue over Q3 2024, up 61% year-on-year (YoY) to US$272 million.
However, despite falling 2% YoY, global foreign exchange revenue made up the bulk of the business’s US$4412 million revenue (up 15% YoY) with US$3028 in revenue recorded at the end of Q3.
Securities services and securities financing, the next largest contributors to overall revenue, were down 3% (to US$1700 million) and up 28% (to US$1047 million) respectively.
Barclays Investment Bank reported US$3.69 billion in income over Q3, up 6% YoY. Equities income of US$897.8 million was dwarfed by the US$1.5 billion of FICC income recorded, although both rose just 3% YoY.
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