As investment banks head into the uncharted territory of an uncertain economic outlook and regulatory environment, their results for the first quarter of this year were always going to range from a car crash to a walk in the park. But what the wide dispersion in their profits cannot disguise is the seismic changes taking place on their balance sheets.

Results ranged from a startling 81% fall in pre-tax profits in the institutional securities division at Morgan Stanley, through a 72% fall in net profits at Goldman Sachs, to a mere 4% slide at JP Morgan. This widening dispersion in performance was also reflected in the profitability: from 6% return on equity at Morgan Stanley to 24% at JP Morgan.