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.
Global Investment Banks - Europe: Q1 2020 Update Coronavirus-related credit impairments depress profit
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.
Global Investment Banks – US: Q1 2020 Update - Early effects of coronavirus pandemic pinch first quarter profits at US GIBs
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.
Severe coronavirus shock scenario would hit global investment banks’ profits but leave capital intact
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.
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
Global Investment Banks: Solid liquidity positions will allow banks to manage rising drawdown demands
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.
Oil and gas credit exposures at global investment banks are contained, negative effects of oil price plunge manageable
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.