Revenues from capital markets activity have increased in 2018, albeit modestly.

According to Coalition data, capital markets revenue for the industry was up 6 per cent in the first half of 2018.

This compares with a decline in capital markets revenue of 4 per cent in 2017. Company statements about this revenue source for the third quarter were mixed, and results for the third quarter will likely vary from firm to firm.

S&P Global Ratings now projects that capital-markets revenues for the industry will be up 3 per cent to 5 per cent year over year, versus their previous forecast of flat revenue.

Despite this pickup, S&P does not see banks taking on undue trading risk and do not anticipate changing ratings due to higher trading risk appetites.