Global banks set to reap 10% trading revenue boost amid tariff chaos

Global banks, including top U.S. lenders, are expected to report a 10% gain in markets revenue due to traders capitalizing on shifting U.S. tariff policies. The first quarter saw a 15% increase in trading revenue for 12 global banks. Bank of America and Citigroup anticipate markets revenue to rise by mid-to-high single digit percentages in the second quarter.

U.S. banking giants are projected to exceed expectations in second quarter earnings as they benefit from President Trump’s tariff announcements causing stock volatility and record U.S. Treasuries market volumes. Coalition’s estimates are based on 12 global banks, with equities expected to outperform fixed income and currencies.

Increased trading activity persists for banks amidst tariff, interest rate, and geopolitical volatility. Tradeweb Markets reported a 38.6% year-over-year increase in average daily volume in April. Banks anticipate sustained growth in trading revenue, with a forecasted 7% increase for 2025 compared to a 13% gain in the first half of 2021.

Analysts predict a path to normalcy in trading activities after years of low interest rates. Tradeweb Markets observed a surge in U.S. government bond activity following President Trump’s tariff announcements, leading to a record in April. Revenue growth projections for banks are the highest since the 2009 global financial crisis.

Read more at Yahoo Finance: Global banks predicted to get 10% trading revenue boost on tariff turmoil