For firms active in European capital markets, the second half of this year is going to look very different to the first. Even as recently as March, many finance professionals were predicting the possibility of a bumper year across a raft of asset classes. M&A activity was still spurring on financing needs across the continent, and apart from the occasional dip, markets were generally holding up. First quarter results had been rosy at most of the bulge-bracket banks and many of the smaller players. New records were set, in spite of the very...Read more
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British banks may not be known for their investment banking activities, but this ignores a sector that is an increasingly important and profitable area for the country’s major banking institutions. And with vast lending operations providing the cornerstone for their activities, they are bringing a commercial banker’s eye for the relationship in a focused and discriminating approach to the market. David Cox reports.
French banks have long had a reputation for innovation, as reflected in the extent to which Societe Generale and BNP Paribas rely on their derivatives businesses to support their corporate and investment banking operations. Maintaining a focus on domestic clients has been important, but is not the only game in town, as Mark Baker reports.
German capital markets are dominated by Deutsche Bank, which is also the leader in many areas of the debt business across Europe. But as that bank has moved ahead, increasingly driven by smart trading more than by its origination and distribution franchise, the others have slipped back. Commerzbank's recovery is continuing, although Dresdner Kleinwort's is spluttering. Meanwhile, the Landesbanks look set for their biggest shake-up in years. Mark Baker reports.
Although sharing some fundamental characteristics, the capital markets activities of the two principal Swiss banks have developed in quite different ways. Both firms operate their investment banks very closely alongside their asset and wealth management businesses, but despite being present in some of the same markets, both have seen very different performances in recent times. Mark Baker reports.
Benelux banking was thrown into turmoil this year by the takeover battle for ABN AMRO. But activity has been brisk despite the uncertainty. ABN has continued to cut costs and has shown significant gains in some businesses. Among the other firms, ING is continuing to broaden its franchise, as Mark Baker reports.
Although frequently limited to their home region, Nordic banks have nevertheless traditionally performed well in capital markets. This year saw Carnegie take a big hit after a trading catastrophe, but elsewhere the picture remains good. Some of the most exciting developments have come from the Icelandic sector, where ambitious growth plans are being fulfilled, as Mark Baker reports.
After several bouts of consolidation, Spain, like Italy, now has few significant capital markets firms. But of those that remain, the two principal players in many ways reflect large corporate culture in Spain, with a strong sense of tradition and a domestic focus. Nevertheless, as corporates increasingly look further afield, so must the banks. Mark Baker reports.
Italian capital markets and investment banking has moved on from being a fragmented market just a few years ago to one that is almost entirely dominated by one firm. That UniCredit has emerged as a giant in comparison with its domestic peers is a testament to an extraordinary M&A flurry, writes Mark Baker.
Russian capital markets have been growing rapidly since 2000 but the level of growth of the past three years has been exponential. The level of activity in equity and debt markets has propelled Russia to the forefront of banking strategy in Europe, but the pullback by international firms after 1998 has left domestic players in a position of strength. Owen Wild reports.