How US Bankers Are Performing in Global Markets



Global banking business

US commercial banks (IYF) have increased their offerings of credit and credit cards in Europe, Asia, and Africa. These banks are market leaders or among the top players in select offerings and countries. Bank of America’s (BAC) Global Banking division posted net income of ~$1.8 billion in 2Q17, compared to $1.7 billion in 1Q17 and $1.5 billion in 2Q16. This growth was backed by credit expansion and credit card spending.

The division’s revenues increased 7% to $5.0 billion, mainly due to a 12% rise in net interest income, a 3% rise in non-interest income, lower provisions, and a marginal increase in operating expenses.

Bank of America has seen a rise in non-interest income on advisory fees and Treasury-related income, partially offset by a decline in revenues for hedging activities.

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Citigroup, JPMorgan Chase, and Wells Fargo

Citigroup’s (C) Global Banking business grew 4% to $3.1 billion. This growth was helped by growth in Latin America and Asia, driven by higher lending, deposits, and credit card loans. The bank has managed higher traction for wealth and investment banking offerings in Asia.

JPMorgan Chase (JPM) has also seen improved earnings from its investment banking, credit card, and credit offerings in Europe and Asia. The bank’s focus on product mix has yielded growth across its divisions. This trend is expected to continue with marginally subdued growth in the second half of 2017.

Wells Fargo (WFC) has relatively lower exposure outside the US when compared with other major bankers. The bank’s core banking and asset management operations have yielded robust growth out of Europe.


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