Global investment banking - slowest quarter for fees since 2011

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Global Investment Banking Fees Total US$64.5 billion; Slowest Quarter for IB Fees since 2011; America Fees Down 1%; Europe Falls 25%

Fees for global Investment Banking services, from M&A advisory to capital markets underwriting, totaled US$64.5 billion during the first nine months of 2015, a 10% decrease over last year at this time and the slowest first nine months for fees since 2013. Fee during the third quarter of 2015 totaled US$17.4 billion, a 30% decline compared to the second quarter of this year, marking the slowest quarter for Investment Banking fees since the fourth quarter of 2011. Fees from equity capital markets fell 55% compared to the previous quarter, while debt capital markets fees declined 32%.

JP Morgan Takes Top Spot for Global Investment Banking Fees; Within Top 25, All US Banks See Positive Wallet Share Gains

JP Morgan topped the global investment banking league table during the first nine months of 2015 with US$4.66 billion in fees, or 7.2% of overall wallet-share. Goldman Sachs booked US$6.65 billion in fees during the first nine months 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 RBC Capital Markets moving into the top ten. Within the top 25 firms, not one US-based investment bank saw a decline in wallet share during the first nine months of 2015, while 13 non-US banks saw a combined loss of 2.1 wallet share points.

Healthcare IB Fees Register 50% Increase; Strong Double-digit Percentage Declines for Government & Agencies, Consumer Staples and Energy

Investment banking activity in the financials, healthcare and energy & power accounted for 51% of the global fee pool during the first nine months of 2015. Bank of America Merrill Lynch topped the fee rankings in five sectors during the first nine months, with 8.7% share in the media and entertainment sector. Fees from deal making in the healthcare sector increased 50% compared to a year ago with JP Morgan commanding 11.7% of all fees booked in the sector during the first nine months. Fees from governments and agencies and consumer staples and energy companies posted strong double-digit percentage declines during the first nine months.

Financial Sponsor-related Fees Down 26%; Blackstone Group Tops Financial Sponsor Fee Rankings, Goldman Sachs Tops Sponsor-Related Fee Rankings

Investment banking fees generated by financial sponsors and their portfolio companies reached $8.7 billion during the first nine months of 2015, a decrease of 26% compared to 2014. Fees generated from leveraged buyouts accounted for 33% of financial sponsor-related fees during the period, while ECM exits accounted for 18% and M&A exits comprised 17% of overall fees. Blackstone Group and related entities generated $379 million in investment banking fees this year, down 47% compared to the first nine months of 2014, while Goldman Sachs collected an industry-leading 8.1% of sponsor-related fees during the period.

IPOs Pull Equity Capital Markets Fees Down 13%; Debt Capital Markets Fees Fall 15%, while M&A Fees Register 8% Uptick

Dragged down by an 30% decrease in fees from IPOs, equity capital markets underwriting fees totaled US$16.0 billion during the first nine months of 2014, down 13% from a year ago. Fees from debt capital markets underwriting totaled US$16.8 billion, down 15% compared to last year's tally and accounted for 26% of overall IB fees during the first nine months of 2015. M&A advisory fees totaled US$18.6 billion during the period, up 8% compared to the same period last year, and accounted for 29% of the global fee pool, while fees from syndicated loans decreased 19% compared to the first nine months of 2014.

Source: Thomson Reuters

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