The worst investment banking services are scheduled to extend in more than a decade

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Investment banking services are on its way to expand a record scope of weak performance, providing less than a quarter of Wall Street revenues in the largest American banks for the fourteenth quarter in a row.

Traders are scheduled to save their consultant colleagues Wall Street Banks Expect it to be $ 31 billion – more than three times the number for investment banking services.

Analysts expect trading revenues at JPMorgan Chase, Bank of America, Citigroup, Goldman Sachs and Morgan Stanley is approximately 10 percent higher than last year.

They expect revenues from Investment banking servicesThe other part of the Wall Street operations will decrease by 10 percent to 7.5 billion dollars, according to the consensus data collected by Bloomberg.

If the profit matching capabilities are when the results of the group report on Tuesday and Wednesday, investment bankers will have contributed less than 25 percent of Wall Street’s revenues – distinct from the money gained from retail and money management activities – since the beginning of 2022.

This will be the longest period in which they have failed to violate this threshold at least in 2014.

Although trading and investment banking services are both volatile companies, the last length of decline highlights the calm markets in the capital and stock markets since the explosion of the bubble of the epidemic 2021.

It also confirms the strength of the business circulated in following a dread period in 2010, when low interest rates and silent fluctuations decreased.

Banks facilitate and finance deals. They benefit when the activity levels are high and prices are volatile.

“This is a natural environment, while the low environment (volatility) for the year 2010 was the abnormal part,” said Chris Kotovsky, OPPenheimer & Co.

In the past three years, financial markets have struggled with high interest rates, conflicts in Ukraine and the Middle East, and protectionist policies after Donald Trump’s return to the White House.

These same trends have reduced the ability of corporate leaders and investment companies to make offers, despite the constant optimism of bankers about the potential pipeline.

“I think 2025 was somewhat accomplished (for investment banking services),” Kotovsky said. “Yes, you can get a strong quarter of the stock version in the fall, and this would help the numbers. Integration and purchases will be the most common job of what has been announced in the back half of the year.”

Investors tend to evaluate revenues from investment banking services more than trading because it can be a higher and less intensity margin in the capital.

Investors are still betting that the long -awaited recovery in investment banking services will be achieved, as Goldman’s share price recently exceeds $ 700 for the first time.

“The first half of the quarter was harsh for clear reasons. But it is clear that there is a lot of optimism about expectations here,” said Saul Martinez, HSBC.

The same political and economic stability that investors hope to urge wheels on deals can reduce market fluctuations that prompted trading revenues to banks.

Martinez said the revenue from trading “was really high and I don’t know that you can make the case convincing that you will see a lot of growth from here.”

Results of the JPMorgan and Citi report on July 15, with Bofa, Goldman and Morgan Stanley reports the next day.

Along with Wells Fargo, the group represents the largest American bank by the assets. The net net income of the six banks in general is expected to decrease by about 13 percent from the same quarter of last year.

The most severe decline in JPMorgan, as analysts expect a 30 percent decrease from last year, when the bank recorded one time for about $ 8 billion in its share in the credit card company visa.