Big banks' Q1 trading revenue prompts cautious optimism

London

TRADING revenue from the world's biggest banks showed signs of recovery in the first quarter as financial market volatility boosted dealing room profits after years of attrition.

Though income has been only modestly higher than the same period last year, the numbers have prompted cautious optimism from analysts holding out hope for a return to trading returns last seen before the 2007/08 financial crisis.

Earnings so far from the five leading US banks and Credit Suisse in Europe show that revenue from fixed income, currenc…