JP Morgan Takes Top Spot for Global Investment Banking Fees; Significant Wallet-share gains Among Top Five Banks
JP Morgan topped the global investment banking league table for first half 2013 with US$3.0 billion in fees, or 7.7% of overall wallet-share. Bank of America Merrill Lynch booked US$2.8 billion in investment banking fees during first half 2013 for second place and an increase of 1.2 wallet-share points. Within the top 25, Bank of America Merrill Lynch, Goldman Sachs and Morgan Stanley all saw significant year-over-year wallet share gains compared to the year ago period.
Global Investment Banking Fees Total US$39.1 billion, up 8% from 2012; Slowest First Half for IB Fees in Asia Pacific since 2009
Fees for global Investment Banking services, from M&A advisory to capital markets underwriting, totaled US$39.1 billion during the first half of 2013, an 8% increase over last year at this time and the strongest annual start for investment banking fees in two years. Second quarter investment banking fees declined 3.5% compared to the first quarter of 2013, when fees totaled US$19.9 billion. Fees in the Americas totaled US$22.5 billion, a 13% increase from 2012 while fees in Europe increased 3.5% and Asia Pacific fees declined 7% Fees in Middle East/Africa increased 13% compared first half 2012, while fees in Japan climbed 14% compared to 2012 levels.
Financials, Energy & Power and Industrials Account for 54% of Global Investment Banking Fee Pool
Investment banking activity in the financials, energy & power and industrials sectors accounted for 54% of the global fee pool during the first half of 2013. JP Morgan topped the fee rankings in five sectors during the first quarter, with double-digit wallet-share in the healthcare, consumer staples and media sectors. Goldman Sachs and Bank of America Merrill Lynch registered industry-leading positions in four and three sectors, respectively. Fees from deal making in the real estate, telecom and consumer staples sectors saw strong double-digit percentage gains compared to the first half of 2012.
Debt Capital Markets Fees Account for 31% of Global Fees; M&A Fees Fall 16%; Equity Capital Markets Fees up 26%
Fees from debt capital markets underwriting totaled US$12.3 billion, up 9% compared to last year's tally and accounted for 31% of overall IB fees during the first half. M&A advisory fees totaled US$8.3 billion during first half of 2013, a decrease of 16% over the same period last year, and accounted for 23% of the global fee pool. Equity capital markets underwriting fees totaled US$9.6 billion during first half 2013, registering a 26% increase from a year ago, while fees from syndicated loans increased 19% compared to the first half of 2012.
Financial Sponsor-related up 11% from 2012; Blackstone Group Tops Financial Sponsor Rankings
Investment banking fees generated by financial sponsors and their portfolio companies reached $5.1 billion during the first half of 2013, an increase of 11% compared to first half 2012. Fees generated from leveraged buyouts accounted for 27% of financial sponsor-related fees during the first half, while M&A exits accounted for 19% and IPO exits comprised 13% of overall fees. Blackstone Group and related entities generated $264 million in investment banking fees this year, more than double levels seen during first half of 2012, while Goldman Sachs collected an industry-leading 8.7% of financial sponsor-related fees during first half 2013.