Global IB Fees Fall 8%; Capital Markets Declines Bring IB Fees to 2-Year Low; Healthcare Fees Rise 59%; JP Morgan Takes Top Spot
Global Investment Banking Fees Total US$45.2 billion; Slowest First Half for IB Fees since 2013; America Fees Flat; Europe Falls 24%
Fees for global Investment Banking services, from M&A advisory to capital markets underwriting, totaled US$45.2 billion during the first half of 2015, an 8% decrease over last year at this time and the slowest first half for fees since 2013. Fees in the Americas totaled US$25.7 billion, flat compared to the first half of 2014 while fees in Europe decreased 24% and fees in Japan decreased 17%. Fees in Africa/Middle East decreased 12% compared to a year ago, while fees in Asia Pacific increased 3% compared to 2014 levels.
JP Morgan Takes Top Spot for Global Investment Banking Fees; Top Five Banks Pick Up Combined 2.4 Wallet Share Points
JP Morgan topped the global investment banking league table during the first six months of 2015 with US$3.31 billion in fees, or 7.3% of overall wallet-share. Goldman Sachs booked US$3.29 billion in fees during the first half of 2015 for second place and an increase of 1.3 wallet-share points. The composition of the top ten banks remained nearly unchanged, with Wells Fargo moving into the top ten. With in the top 10, Goldman Sachs and JP Morgan saw the strongest wallet share increases compared to a year ago while Credit Suisse saw a 21% decrease in first half fees resulting in a loss of 0.6 wallet share points.
Healthcare IB Fees Register 59% Increase; Strong Double-digit Percentage Declines for Government & Agencies, Consumer Staples and Media
Investment banking activity in the financials, healthcare and energy & power accounted for 52% of the global fee pool during the first six months of 2015. JP Morgan topped the fee rankings in four sectors during the half, with double-digit wallet-share in the telecommunications sector. Fees from deal making in the healthcare sector increased 59% compared to a year ago with Goldman Sachs commanding 11.8% of all fees booked in the sector during the first half. Fees from governments and agencies and consumer staples and media companies posted strong double-digit percentage declines during the half.
Financial Sponsor-related Fees Down 27%; Blackstone Group Tops Financial Sponsor Fee Rankings, Morgan Stanley Tops Sponsor-Related Fee Rankings
Investment banking fees generated by financial sponsors and their portfolio companies reached $6.0 billion during the first half of 2015, a decrease of 27% compared to 2014. Fees generated from leveraged buyouts accounted for 29% of financial sponsor-related fees during the half, while ECM exits accounted for 22% and M&A exits comprised 16% of overall fees. Blackstone Group and related entities generated $294 million in investment banking fees this year, down 28% compared to the first half of 2014, while Morgan Stanley collected an industry-leading 8.0% of sponsor-related fees during the first half.
IPOs Pull Equity Capital Markets Fees Down 4%; Debt Capital Markets Fees Fall 10%, while M&A Fees Register 6% Uptick
Dragged down by an 18% decrease in fees from IPOs, equity capital markets underwriting fees totaled US$12.6 billion during the first half of 2014, down 4% from a year ago. Fees from debt capital markets underwriting totaled US$12.2 billion, down 10% compared to last year's tally and accounted for 27% of overall IB fees during the first half of 2015. M&A advisory fees totaled US$11.9 billion during first half 2015, up 6% compared to the same period last year, and accounted for 27% of the global fee pool, while fees from syndicated loans decreased 23% compared to the first half of 2014.