Europe’s investment banks dramatically underperformed their US rivals in the second quarter. REUTERS/Ruben Sprich
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Europe's investment banks dramatically underperformed their US rivals in the second quarter, continuing a post-crisis trend in which the Americans have strengthened their dominance across the globe. The large European banks say they can mount a fightback – at least in some areas – and that market conditions will not always favour the US as they did in the three months to June.The region's big four – Barclays, Credit Suisse, Deutsche Bank and UBS – recorded 17.5 per cent lower revenues from investment banking and trading than in the period a year earlier.Advisory revenues across Credit Suisse, Deutsche and UBS fell 22 per cent in the quarter.European banks also took body blows in the capital-intensive sales and trading divisions, where revenues across the nine banks are 10 times those of advisory.While European banks continue to invest in the US, he says, it takes time.The one area where European banks outperformed was in capital markets.
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