Bank / Credit Union

Big banks expect lower revenue, fewer mergers due to Ukraine war

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April 12, 2022

Big banks will likely post smaller quarterly results due to the current conflict in Ukraine. In addition, inflation and market volatility is also reducing the number of mergers and acquisitions this quarter, according to a report by Bloomberg.

With mergers in particular, they have dropped to the lowest levels since the beginning of the COVID-19 pandemic. Part of this is due to antitrust enforcers bringing in tougher merger reviews.

"Many deals did not get launched given the market volatility throughout the quarter," Jason Goldberg , analyst, Barclays, said in the report. "We do think pipelines remain strong and have just been more elongated than canceled."

When it comes to trading, volatility in crude, gas, wheat and metals will likely affect quarterly results, as will capital markets, since many companies have cash stockpiles from low interest rate loans and see no need to get another loan soon.

At the same time, the boost in interest rates may lead to a big increase in loan growth, according to the report.