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"We're not going to make the mistakes we've made in the past," she said at the RBC Capital Markets Global Financial Institutions Conference in New York on Tuesday, where she also reaffirmed the bank's expense guidance for the year ahead. "We're getting this done."
Fraser has been under close scrutiny after initiating what has been billed as the largest restructuring of
With those changes, the New York-based company has shifted its priorities to five business lines: trading, banking, services, wealth management and U.S. consumer offerings. The reorganization simplifies the bank's structure and, with clearer reporting lines, means "there's nowhere to hide" for anyone when it comes to accountability — including Fraser herself, she said.
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"On the corporate side, sentiment is definitely improving," Fraser said, adding that more announcements for mergers and acquisitions are a good indicator for its banking unit, despite fewer closed deals. She said the debt capital markets are also "extremely active," but equity capital markets and the hedge fund world are slower.
As a result, Fraser said investment-banking revenue should be up by a percentage in the low teens compared with the last quarter of 2023. The Wall Street giant also said revenue in its markets division fall by 8% to 12% in the first quarter from its strong performance a year earlier.
The expected increase in investment-banking revenue comes amid greater confidence among much of the market that interest rates will start to fall this year. Such a development would ease financing costs for dealmakers and could produce windfall fees for banks.
Fraser also said that European clients are still bearing the brunt of higher energy and labor costs, leading to concerns around their ability to compete.
"The U.S. just feels more on the front foot," she said.