Thomson Reuters Global Investment Banking Fee Review Q1 13

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Bank of America Merrill Lynch Takes Top Spot for Global Investment Banking Fees; Significant Wallet- share gains Among Top Five Banks

Bank of America Merrill Lynch topped the global investment banking league table for first quarter 2013 with US$1.52 billion in fees, or 7.7% of overall wallet-share. JP Morgan booked US$1.48 billion in investment banking fees during first quarter 2013 for second place and an increase of 0.3 wallet-share points. Within the top 25, Goldman Sachs, Morgan Stanley, Bank of America Merrill Lynch and Citi all saw significant year-over-year wallet share gains compared to the year ago period.

Global Investment Banking Fees Total US$19.8 billion, up 6% from 2012; Slowest First Quarter for IB Fees in Europe, Asia Pacific since 2009

Fees for global Investment Banking services, from M&A advisory to capital markets underwriting, totaled US$19.8 billion during the first quarter of 2013, a 6% increase over last year at this time and the strongest annual start for investment banking fees in two years. First quarter investment banking fees decline 11% compared to the fourth quarter of 2012, when fees totaled US$22.3 billion. Fees in the Americas totaled US$11.6 billion, a 16% increase from 2012 while fees in Asia Pacific decreased 10% and European fees declined 7% Fees in Middle East/Africa increased 34% compared first quarter 2012, while fees in Japan were flat compared to 2012 levels.

Financials, Energy & Power and Industrials Account for 51% of Global Investment Banking Fee Pool

Investment banking activity in the financials, energy & power and industrials sectors accounted for 51% of the global fee pool during the first quarter of 2013. JP Morgan topped the fee rankings in four sectors during the first quarter, with double-digit wallet-share in the healthcare, consumer staples and media sectors. Bank of America Merrill Lynch and Goldman Sachs registered industry-leading positions in three sectors each. Fees from deal making in the consumer staples, real estate and telecom sectors saw double-digit percentage gains compared to the first quarter of 2012.

Debt Capital Markets Fees Account for 33% of Global Fees; M&A Fees Fall 11%; Syndicated Lending Fees up 37%

Fees from debt capital markets underwriting totaled US$6.5 billion, flat compared to last year's tally and accounted for 33% of overall IB fees during the first quarter. M&A advisory fees totaled US$3.9 billion during first quarter 2013, a decrease of 11% over the same period last year, and accounted for 20% of the global fee pool. Equity capital markets underwriting fees totaled US$4.5 billion during first quarter 2013, registering a 7% increase from a year ago, while fees from syndicated loans increased 37% compared to the first quarter of 2012.

Financial Sponsor-related up 28% from 2012; Bain Capital Tops Financial Sponsor Rankings

Investment banking fees generated by financial sponsors and their portfolio companies reached $2.6 billion during the first quarter of 2013, an increase of 28% compared to first quarter 2012. Fees generated from leveraged buyouts accounted for 24% of financial sponsor-related fees during the first quarter, while M&A exits accounted for 20% and IPO exits comprised 8% of overall fees. Bain Capital LLC and related entities generated $122 million in investment banking fees this year, more than triple levels seen during first quarter 2012, while Goldman Sachs collected an industry-leading 8.9% of financial sponsor-related fees during first quarter 2013.

Source - Thomson Reuters

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