​Lower Asia Revenues Weigh On U.S. Bank Equities In Q2 Earnings

Lower activity and revenues in Asia equities in Q2 2016 weighed on U.S. bank equity sales and trading revenues during the period. Goldman Sachs reported that net revenues in equities in its institutional client services division in Q2 2016 were 12% lower year-on-year due to lower net revenues in equities client execution, due to significantly lower net revenues in both cash products and derivatives in Asia. New revenues in the firm’s institutional client services division in Q2 2016, however, was 2% higher year-on-year and 7% up on Q1 2016. Morgan Stanley, meanwhile, reported equity sales and trading net revenues in Q2 2016 were down from USD2.3 billion a year ago to USD2.1 billion, reflecting lower volumes and activity in Asia, although this was partially offset by improved performance in the U.S. and Europe. Net revenues for Morgan Stanley’s institutional securities division in Q2 2016 was USD4.6 billion compared to USD5.2 billion a year ago.