# Investment banks’ trading revenue likely to shrink, Barclays boss says Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-09-20 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Barclays CEO predicts dip in trading revenue next year Meta Description: Barclays' CEO predicts a decrease in trading revenue next year, with a potential boost in advisory fees offsetting losses. Find out more in this Reuters URL: https://financedigest.com/investment-banks-trading-revenue-likely-to-shrink-barclays-boss-sayshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-09-20t162225z2lynxmpei8j0wcrtroptp4global-banks-1736815185926-compressed.jpg) By Sinead Cruise and Iain Withers LONDON (Reuters) – Investment banks are likely to be hit by a dip in trading revenue next [year](https://www.financedigest.com/car-sales-push-irish-retail-sales-sharply-higher-again.html) and will be counting on a bounce back in advisory fees to support their finances, Barclays’ CEO C.S. Venkatakrishnan told an investor event on Tuesday. A trading surge has helped [investment banks](https://www.financedigest.com/credit-agricole-launches-china-ma-and-investment-banking-business.html "Credit Agricole launches China M&A and investment banking business") report robust results this year and helped to offset a dire year for fees on company flotations and M&A deals amid global market turbulence. That could be set to change by the [second half of next year](https://www.financedigest.com/ericssons-board-rebuked-by-shareholders-at-agm-for-second-year-in-a-row.html "Ericsson’s board rebuked by shareholders at AGM for second year in a row"), Barclays CEO said. Trading [revenue](https://www.financedigest.com/itv-forecasts-12-jump-in-q2-ad-revenue-on-euros-demand.html) pools will probably shrink a bit and [investment banking](https://www.financedigest.com/hsbc-appoints-new-markets-head-amid-wider-investment-bank-reshuffle.html "HSBC appoints new markets head amid wider investment bank reshuffle") revenue pools will probably rise. Whether they offset each other I don’t know,” Venkatakrishnan – known internally at [Barclays as Venkat – said at a Bank](https://www.financedigest.com/barclays-private-bank-opens-new-office-in-verbier-switzerland-for-2022-23-ski-season.html "Barclays Private Bank opens new office in Verbier, Switzerland for 2022/23 Ski Season") of America event. But I anticipate [volatility in the markets continuing at least in the first and second quarter of next year](https://www.financedigest.com/crop-merchant-louis-dreyfus-gets-profit-boost-in-volatile-year.html "Crop merchant Louis Dreyfus gets profit boost in volatile year"). And so the declining trading revenue pools seasonally adjusted is more likely to happen in the second half of [next year.”](https://www.financedigest.com/cepsa-to-nearly-double-investments-over-next-3-years-as-profit-soars.html "Cepsa to nearly double investments over next 3 years as profit soars") Venkat said a flurry of interest rate rises in Britain – Barclays’ home market – with another [rise expected from the Bank](https://www.financedigest.com/sterling-rises-as-receding-bank-sector-worries-lift-sentiment.html "Sterling rises as receding bank sector worries lift sentiment") of England this week, could have “the effect of cooling the economy. But he said he still expected rate rises to be “a [net positive” for Barclays as it boosts](https://www.financedigest.com/recruiter-hays-boosted-by-record-net-fees-but-cautious-on-outlook.html "Recruiter Hays boosted by record net fees, but cautious on outlook") income from lending. He said he expected all the bank’s three main business units to exceed 10% [return on tangible equity – a key measure of profitability](https://www.financedigest.com/uks-j-d-wetherspoon-returns-to-profit-as-supply-issues-ease.html "UK’s J D Wetherspoon returns to profit as supply issues ease") for banks – next year. Venkat also [provided an update on an error that resulted in the bank overselling a range of complex financial](https://www.financedigest.com/mazars-to-acquire-financial-modelling-consultancy-and-training-provider-corality-financial-group.html "Mazars to acquire financial modelling consultancy and training provider, Corality Financial Group") instruments in breach of U.S. rules. The bank will provide more details on the final [costs of its so-called rescission offer to buy](https://www.financedigest.com/blessing-or-burden-what-else-could-you-buy-for-the-cost-of-your-timeshare.html "Blessing or burden? What else could you buy for the cost of your timeshare?") back the securities in “relatively short order”, Venkat said. [Barclays](https://www.financedigest.com/uks-barclays-to-sell-german-consumer-finance-business.html) said last week that investors had submitted claims for $7 billion out of $17.7 billion worth of securities it sold in error, under the terms of the rescission offer by which the bank had to [buy back](https://www.financedigest.com/uks-bellway-to-buy-back-shares-hike-social-housing-output.html "UK’s Bellway to buy back shares, hike social housing output") the notes and compensate buyers. (Reporting by Sinead Cruise and Iain Withers, Editing by Jane Merriman) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---