Latest news with #CoalitionGreenwich
Zawya
07-07-2025
- Business
- Zawya
Bank trading bonanza continues in second quarter: IFR
Banks are on track to report another strong quarter in sales and trading after US president Donald Trump's chaotic tariff announcements in April rocked financial markets and triggered a flurry of client activity. Banks' markets revenues increased 10%–15% in the second quarter from the previous year, according to data provider Coalition Greenwich, as trading desks continued to thrive in the high-volatility environment that has characterised the first half of the year. Equities trading divisions led the charge, with Coalition Greenwich projecting a 20%–25% annual increase in revenues. That comes on the back of several banks reporting a record quarter for equities trading revenues in the first three months of the year. Fixed income trading, meanwhile, is expected to register a more modest 5%–10% growth in the second quarter following an uptick in foreign exchange and interest rate trading. 'Q2 was another strong quarter for banks in sales and trading, with equities and macro products doing particularly well,' said Angad Chhatwal, head of fixed income, currencies and commodities at Coalition Greenwich. 'Banks benefited from a notable increase in client trading activity and widening in bid-ask spreads around the April tariff volatility, with some likely to outperform because of their business mix.' The trading bonanza contrasts with a frustrating period for dealmaking. Global investment banking fees declined 3% in the first half as strong debt capital markets activity was offset by more sluggish M&A and ECM activity. However, the market volatility that put the brakes on mergers and IPOs provided a boost for banks' trading desks, which have seen record volumes of transactions across various asset classes. Equities trading has been at the forefront of this expansion after several banks reported record revenues in 2024. Many banks are continuing to invest in this space, particularly in businesses such as prime brokerage that have grown rapidly amid huge demand from hedge funds for financing. 'I think we can gain market share in markets,' Troy Rohrbaugh, co-chief executive for the commercial and investment bank at JP Morgan, told investors in May. 'We continue to see the benefits of our investment in equities. We're growing ... and deepening our client franchise across the whole space.' FX trading has been a particular bright spot for banks' fixed income divisions after a sharp reversal in the US dollar ignited market volatility and prompted investors to shuffle their currency exposures. CLS said average daily trading volumes submitted to the FX settlement infrastructure group hit a record US$2.5trn in April after Trump announced sweeping tariffs against US trading partners. 'Foreign exchange is the driving force behind the outperformance in macro trading. Rates products also picked up, helping to offset declines in spread businesses,' said Chhatwal. Some banks sustained fixed income trading losses during the April turmoil, a factor that could weigh on revenues, although most appear to have rebounded quickly and have capitalised on the upturn in client trading activity. Coalition Greenwich said banks' performance in fixed income will depend on business mix (the size of their macro trading operations compared to credit trading); client mix (how prominent they are with institutional investors over corporates); and 'trading one-offs'.
Time of India
20-06-2025
- Business
- Time of India
All routes lead to Mideast and Iran-Israel war won't shut down the 'Silicon Road'
The big theme in Asian supply chains over the past decade has been relocation. Entire industries have sought to pare their reliance on China by shifting manufacturing to other low-cost destinations like Vietnam and India. Japanese carmakers and Indian pharmaceutical firms have chosen Mexico to be closer to American demand. More recently, however, a new route is emerging — from Asia to the Middle East . Speculation that the US is on the verge of joining Israel's attack on Iran may unsettle business leaders' current plans and delay activity along the corridor. However, as long as hostilities don't spiral into a catastrophic event, such as the closing of the all-important Strait of Hormuz to shipping, they are unlikely to derail the economic case for a reprisal of the historic Silk Road. Asian firms are drawn to the Middle East because of the strong appetite in Saudi Arabia, Qatar and the United Arab Emirates to leverage their oil resources — and invest trillions of dollars in everything from electric cars to artificial intelligence. The emerging Silicon Road , as I like to think of it, is drawing top executives from Seoul, Shanghai, Taipei and Mumbai to opportunities in Riyadh, Abu Dhabi, Dubai and Doha. Bankers from London, Singapore and Tokyo aren't too far behind. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Cheap Fuerteventura Holidays Await (Take A Look) BestSearches | Search Ads Undo The best evidence for the new passage comes from the 1,500-plus firms that Coalition Greenwich talks to annually across its Asia Large Corporate Banking and Trade Finance studies. In the latter, diversification, which has been high on the executives' priority list since President Donald Trump 's first term, gained momentum last year, with 34% of the 700-plus respondents saying that they were tapping new locations, versus 29% in 2023. India and Vietnam were predictably high on the list of destinations. Japan also received some mentions because of the export advantage accorded by a cheap yen. But the presentation slide that piqued the most interest among Coalition's banking clients is one that showed Asia's burgeoning corporate-banking ties with the Persian Gulf. Live Events You Might Also Like: Warning: Oil giant fears massive disruption if Hormuz shuts amid Iran-Israel conflict The South Korean chaebols are well entrenched in the Middle East, across a gamut of old and new industries. The construction wing of Samsung Group was the primary contractor for Burj Khalifa, the landmark Dubai skyscraper. The Hyundai Motor Group's engineering affiliate has built nuclear-power reactors for the UAE. The conglomerate is now setting up a car-assembly plant in Saudi Arabia. The Korean internet leader Naver Corp. has built large-scale virtual versions of Mecca, Medina and Jeddah for better city planning. The Koreans' success has become a blueprint for others. Compared with 2020, 9% more of Taiwanese and Indian companies, and 5%-6% more of Chinese and Hong Kong firms, point out the Middle East as a market where they have outbound banking activities. This isn't a flash in the pan. 'Not only are more companies citing the corridor, they are using more banks to do business in it,' says Ruchirangad Agarwal, the head of Coalition Greenwich's corporate banking practice for Asia and the Middle East. In terms of usage, European banks' share of this corporate banking market is a stable 29%. That isn't surprising, given the long history of British institutions like HSBC Holdings Plc and Standard Chartered Plc in both Asia and the Middle East. Even BNP Paribas SA — whose predecessor set up operations in China and India in 1860 — came to the Gulf region in the early 1970s in pursuit of petrodollars. You Might Also Like: Strait of Hormuz: Iran threatens 33-km wide key oil lifeline for the world The more interesting bit in the survey is a growing acknowledgement of Chinese and Japanese lenders. About 30% of banking and capital market assets in the Dubai International Financial Center hub are controlled by the top five Chinese banks. The Asia-Middle East corridor has emerged in response to the ambitious Saudi effort to curb the kingdom's reliance on oil. The $2 trillion that Crown Prince Mohammed bin Salman may end up spending toward this goal will spur demand for everything from physical infrastructure to artificial intelligence software and data centers. Dubai, meanwhile, is getting readying for a flying taxi service. The picks and shovels for the gold rush will come from Asian firms. They will increasingly tap their home-country banks, or a regional lender like Singapore's DBS Group Holdings Ltd., for working capital. The European trade-finance specialists may have to work hard to hold on to their sway.
Economic Times
20-06-2025
- Business
- Economic Times
All routes lead to Mideast and Iran-Israel war won't shut down the 'Silicon Road'
iStock Asian companies are increasingly drawn to the Middle East, enticed by massive investments in diverse sectors like electric vehicles and AI The big theme in Asian supply chains over the past decade has been relocation. Entire industries have sought to pare their reliance on China by shifting manufacturing to other low-cost destinations like Vietnam and India. Japanese carmakers and Indian pharmaceutical firms have chosen Mexico to be closer to American demand. More recently, however, a new route is emerging — from Asia to the Middle that the US is on the verge of joining Israel's attack on Iran may unsettle business leaders' current plans and delay activity along the corridor. However, as long as hostilities don't spiral into a catastrophic event, such as the closing of the all-important Strait of Hormuz to shipping, they are unlikely to derail the economic case for a reprisal of the historic Silk Road. Asian firms are drawn to the Middle East because of the strong appetite in Saudi Arabia, Qatar and the United Arab Emirates to leverage their oil resources — and invest trillions of dollars in everything from electric cars to artificial intelligence. The emerging Silicon Road, as I like to think of it, is drawing top executives from Seoul, Shanghai, Taipei and Mumbai to opportunities in Riyadh, Abu Dhabi, Dubai and Doha. Bankers from London, Singapore and Tokyo aren't too far behind. The best evidence for the new passage comes from the 1,500-plus firms that Coalition Greenwich talks to annually across its Asia Large Corporate Banking and Trade Finance studies. In the latter, diversification, which has been high on the executives' priority list since President Donald Trump's first term, gained momentum last year, with 34% of the 700-plus respondents saying that they were tapping new locations, versus 29% in 2023. India and Vietnam were predictably high on the list of destinations. Japan also received some mentions because of the export advantage accorded by a cheap yen. But the presentation slide that piqued the most interest among Coalition's banking clients is one that showed Asia's burgeoning corporate-banking ties with the Persian Gulf. The South Korean chaebols are well entrenched in the Middle East, across a gamut of old and new industries. The construction wing of Samsung Group was the primary contractor for Burj Khalifa, the landmark Dubai skyscraper. The Hyundai Motor Group's engineering affiliate has built nuclear-power reactors for the UAE. The conglomerate is now setting up a car-assembly plant in Saudi Arabia. The Korean internet leader Naver Corp. has built large-scale virtual versions of Mecca, Medina and Jeddah for better city planning. The Koreans' success has become a blueprint for others. Compared with 2020, 9% more of Taiwanese and Indian companies, and 5%-6% more of Chinese and Hong Kong firms, point out the Middle East as a market where they have outbound banking activities. This isn't a flash in the pan. 'Not only are more companies citing the corridor, they are using more banks to do business in it,' says Ruchirangad Agarwal, the head of Coalition Greenwich's corporate banking practice for Asia and the Middle East. In terms of usage, European banks' share of this corporate banking market is a stable 29%. That isn't surprising, given the long history of British institutions like HSBC Holdings Plc and Standard Chartered Plc in both Asia and the Middle East. Even BNP Paribas SA — whose predecessor set up operations in China and India in 1860 — came to the Gulf region in the early 1970s in pursuit of more interesting bit in the survey is a growing acknowledgement of Chinese and Japanese lenders. About 30% of banking and capital market assets in the Dubai International Financial Center hub are controlled by the top five Chinese banks. The Asia-Middle East corridor has emerged in response to the ambitious Saudi effort to curb the kingdom's reliance on oil. The $2 trillion that Crown Prince Mohammed bin Salman may end up spending toward this goal will spur demand for everything from physical infrastructure to artificial intelligence software and data centers. Dubai, meanwhile, is getting readying for a flying taxi picks and shovels for the gold rush will come from Asian firms. They will increasingly tap their home-country banks, or a regional lender like Singapore's DBS Group Holdings Ltd., for working capital. The European trade-finance specialists may have to work hard to hold on to their sway.
Bloomberg
12-05-2025
- Business
- Bloomberg
Why deregulation does not always mean lower compliance costs
This level of regulatory complexity not only drives up the cost and complexity of day-to-day compliance, but it also underscores the risk of non-compliance, reputational damage, and regulatory scrutiny. Heightened compliance as the prudent choice At a time of intensifying regulatory and policy change, many businesses are dedicating more, not less, resources to monitoring, reporting, and ensuring that they meet and understand the demands associated with operating in each jurisdiction. For the asset management sector, regulatory change remains top of mind particularly given the central role that reputational risk and investor trust play in its business model. In an industry where credibility and transparency are critical to client retention and capital flows, even minor compliance missteps can have outsized consequences, despite enforcement activity typically being more heavily concentrated on the sell-side. The findings from the discussion support the results of Coalition Greenwich's 2024 Global Buy-Side Compliance and Surveillance Study, which was conducted in partnership with Bloomberg, and point to the longevity of many of these issues. The survey found that: There is a clear priority across titles and functions: Strong compliance as a competitive advantage. Compliance officers are cautiously optimistic about their future budgets to help achieve this. Spending is expected to increase in this area globally, regardless of geopolitical shifts, with funds allocated to prevent regulatory fines and invest in technology and front-office tools. It's going to be all about the data. The growth of data in the last few years, due to the expansion of data sources, is forcing compliance professionals to rethink their strategies. Consolidating existing surveillance systems and vendors and integrating capabilities is an important near-term goal, and achievable for buy-side firms. Innovation in compliance technology, fueled by advances in AI and automation, is helping firms elevate their compliance capabilities and respond more effectively to regulatory demands. In a world of accelerating regulatory change and rising expectations, global firms must remain agile in order to adapt and comply at pace. As individual regional markets look to reduce the regulatory burden, the demand for skilled compliance professionals who can leverage compliance technologies is set to rise. As firms navigate an increasingly fragmented landscape, this combination of technological capability and human judgment will be more critical than ever.
Associated Press
24-03-2025
- Business
- Associated Press
KeyBank's Commitment to Building Relationships With Small and Middle Market Businesses Wins 12 National and Regional Best Bank Awards From Coalition Greenwich
KeyBank is being recognized for its support of small and middle market business clients with twelve 2025 Best Bank Awards in middle market banking and small business. These awards reflect Key's sophisticated platform and depth of expertise for growth companies as well as its commitment to helping small businesses grow and run better. KeyBank received the following nine national and regional Coalition Greenwich Best Bank Awards for middle market banking: These awards recognize KeyBank's ability to build trusted relationships with middle market clients, providing them with high quality advice and day-to-day service, that helps them optimize business performance. 'These awards are a testament to the deep trusted relationships we've built with our clients and the dedication of the teams that serve them every day,' said Ken Gavrity, President of Key Commercial Bank. 'We are honored to be recognized by Greenwich Associates and our clients and remain committed to delivering a best-in-class platform and deep industry expertise that empowers middle market businesses to grow and succeed.' KeyBank also received the following three national and regional Coalition Greenwich Best Bank Awards for Small Business Banking: 'Our people are the foundation of KeyBank and these awards from Greenwich reflect their expertise and ability to reach out and build relationships with small businesses across the nation,' said Mike Walters, President of Business Banking at KeyBank. 'We are committed to providing small businesses with the tools and guidance they need to help them run better and grow in their communities.' Methodology Small Business: Awards are based on more than 13,000 interviews with businesses with sales of $1 million –$10 million across the country. Middle Market Business: Awards are Based on nearly 12,000 interviews with businesses with sales of $10–500 million across the United States. ABOUT KEYCORP In 2025, KeyCorp celebrates its bicentennial, marking 200 years of service to clients and communities from Maine to Alaska. To learn more, visit KeyBank Heritage Center. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $187 billion at December 31, 2024. Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,200 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit KeyBank Member FDIC.
