BofA, Barclays profit when others decline in Russian deals

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Investment banks earned the least since 2002 from Russian corporate deals last year as sanctions and low oil prices curbed transactions, according to the consultancy Freeman & Co. Domestic lenders garnered more than half of the commissions for the first time as international firms retreated.

Bloomberg News reports that banks collected $230m advising on Russian mergers, securities sales and syndicated loans, a 35% drop from 2014, Freeman said in a response to questions from Bloomberg.

That compares with the record $1.41bn earned in 2007. Bank of America and Barclays were the only banks besides the state-controlled VTB Capital to increase business, according to Freeman.

Sanctions imposed against Russia after its annexation of Crimea in 2014 barred some of the nation’s biggest companies from international markets and made European and American banks wary of doing business in the country. Deutsche Bank said last year it plans to wind down corporate finance and securities businesses in Russia, while Royal Bank of Scotland sold its local unit.

To access the complete Bloomberg News article hit the link below:

Barclays, BofA Buck Declining Russia Fees Amid Deal Dearth

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