Morgan Stanley and Oliver Wyman have released their giant new report on the future of banking. You can access the entire 74 page report by clicking this link: Morgan Stanley’s investment banking outlook 2014.
Or you can read our distilled, key-chart-only-version below.
1. U.S. banks are still winning, European banks are still losing…
2. European banks are especially losing in fixed income sales and trading (and this is expected to carry on in 2014)…
3. Equities and investment banking (M&A, equity capital markets, debt capital markets) will be the places to work in 2014….
4. European banks seriously need to cut costs, although Nomura (a Japanese bank) needs to cut costs most at its international unit…
5. You don’t want to work in a sales role now…
6. As banks move to an agency trading model (where they simply match buyers and sellers), research is not a good place to be…
7. The back office is sucking profits (and will impact pay)….
8. European banks are also losing market share as measured by the fees they earn from IBD (M&A, ECM and DCM)….
9. In a difficult market for fixed income sales and trading you don’t want to work at Goldman Sachs or Deutsche Bank…
10. JPMorgan looks like a good place to work in fixed income – it has a high market share, but it isn’t over-exposed like Goldman Sachs…
11. Meanwhile, UBS is becoming a stronger place to work in equities sales and trading…
12. Goldman Sachs is the market leader in equities sales and trading, but is struggling to maintain market share as other banks expand their equities businesses…
13. If return on equity is the key measure of a bank’s success, UBS is clearly best while Nomura might be best avoided…
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