Global investment banks to post modest profits in 2020 despite Covid-19 impact – The National

Global investment banks to post modest profits in 2020 despite Covid-19 impact – The National

Lenders have extensively rebuilt and extended their capital buffers following the 2007-08 financial crisis, Moody's says. Global investment banks (GIBs) are likely to post modest profits in 2020 despite falling revenues and higher provisions due to Covid-19, according to Moody's Investors Service.. "As a group, the GIBs have extensively rebuilt and extended their capital buffers following the 2007-08 financial crisis," she added.. The coronavirus pandemic which has infected more than 2 million worldwide and killed over 137,000 people, has derailed the global economy and brought trade and the travel industry to a virtual standstill.. The ratings agency said many of the GIBs have taken significant steps to maintain their capital positions in the early days of this coronavirus-created disruption.. Banks with a greater reliance on revenue from capital markets operations as well as asset and wealth management income businesses face deeper revenue losses than more universally-oriented, diversified banks, according to Moody's.. The prevailing environment will be further exacerbated by low interest rates worldwide, which will affect the US GIBs the most, after the Federal Reserve lowered its key interest rate by 150 basis points in 2020 to date, much deeper in Europe, the ratings agency said.. Banks more exposed to