Strong trading activity, coupled with a rebound in investment banking, drove the large European investment banks to their best second quarter results in almost a decade, according to Morningstar DBRS Inc. Trading revenues rose by 22%, driven by strength in equities, in an environment of heightened volatility and increased client activity. Growth in advisory revenues in the second quarter was underpinned by “a healthy volume of mergers and acquisitions transactions,” DBRS noted — although these revenues were down by 10% from the first quarter. Looking ahead, DBRS said it expects elevated market volatility to persist this year, underpinned by geopolitical and economic uncertainty, which should continue to support the European banks’ capital markets businesses, particularly trading revenues. It said the M&A deal pipeline is expected to remain strong for the rest of the year too.