Global Investment Banks
Global Investment Banks have significant capital markets activities and business-model characteristics that can pose unique or pronounced risks to their creditors. Learn more about the trends impacting this group of banks.
  • SUMMARY
  • REPORTS

  • SECTOR IN-DEPTH
    20 May 2020|Moody's Investors Service
    Strong liquidity at many global investment banks offsets their large wholesale funding exposure, protecting creditors and shielding the banks against stressed conditions.

    SECTOR IN-DEPTH
    06 May 2020|Moody's Investors Service
    The seven European GIBs reported an aggregate adjusted pretax profit of $9.1 billion in the first quarter, down 39% from $15.1 billion a year earlier. The decrease reflects the early effects of the coronavirus pandemic, which drove sharply higher credit impairment charges.

    SECTOR IN-DEPTH
    17 Apr 2020|Moody's Investors Service
    The five US-based global investment banks (GIBs) reported aggregate pretax profit of $14.3 billion in first quarter 2020, down 55% from $31.7 billion in first quarter 2019. The US GIBs entered this downturn with prudent amounts of liquidity and capital and solid pretax pre-provision profitability that will help safeguard their financial profiles from many adverse scenarios.

    SECTOR IN-DEPTH
    15 Apr 2020|Moody's Investors Service
    Under our assumed scenario of sharply reduced revenue and increased loan loss provisions, the global investment banks would record modest profitability for 2020 in aggregate and largely preserve their capital buffers, which are substantially improved since the 2007-08 financial crisis.

    VIDEO
    Video
    26 Mar 2020|Moody's Investors Service
    Sean Marion of the Financial Institutions team discusses the severe impact of the coronavirus (COVID-19) on European banking systems, leading to outlook changes to negative for Spain, France, Italy, Belgium, The Netherlands and Denmark. >> View the report

    SECTOR COMMENT
    18 Mar 2020|Moody's Investors Service
    The coronavirus outbreak will lead to increased utilization of banks' credit facilities. Global investment banks' high liquidity buffers and monetary policy decisions mitigate liquidity risk. 

    SECTOR COMMENT
    12 Mar 2020|Moody's Investors Service
    The recent plunge in oil prices sets the stage for significantly lower energy prices in 2020 that, along with an economic slowdown, will raise the financial pressure on energy sector borrowers. As a result, we expect oil and gas-related loan loss provisions will rise significantly at the global investment banks over the next few quarters in anticipation of a deterioration in borrower credit quality.

    KEY CONTACTS
    Ana Arsov
    Managing Director – Financial Institutions
    Ana.Arsov@moodys.com
    Laurie Mayers
    Associate Managing Director – Financial Institutions
    Laurie.Mayers@moodys.com