LONDON (IFR) - Global transaction banking revenues rose 4 percent to $13.8 billion (10.23 billion pounds) in the first half of this year from a year ago, led by a jump in cash management income in the Americas and Asia, analysis firm Coalition said.
Cash management revenues were $11 billion in the first six months of this year, up 7 percent from a year ago and the highest level since 2011 when Coalition started compiling data.
The growth was due to higher volumes as banks accumulated deposits and increased their deposit productivity, Coalition said.
Transaction banking, or the collection of “vanilla” services offered by banks to trading partners, is an increasingly important area for banks looking to bring in stable revenues as trading income comes under pressure.
The leading banks include Citigroup, HSBC and JP Morgan.
But revenues in trade finance, another part of transaction banking, dipped to $2.8 billion in the first half of the year, down 5 percent from a year ago and the lowest level for at least seven years, Coalition estimated. The fall was due to margin compression, especially in Asia, and a drop in commodities trade finance as clients reduced activities.
Revenues for the top 10 banks in transaction banking from the Americas rose 8 percent from a year ago to $6 billion and in Asia-Pacific they were up 7 percent to $3.5 billion, but in Europe, Middle East and Africa income was down 2 percent to $4.3 billion, Coalition said.
Reporting by Steve Slater