HSBC Finds It Tougher

Fees for global investment banking services, from M&A advisory to capital markets underwriting, totalled $57.7bn for the first nine months of 2010, a 9% increase over last year at this time.

Asia-Pacific investment banking fees registered a 26% increase over 2009, leading all regions.

JP Morgan topped the global investment banking league table for the period, bolstered by fees across a balanced mix of products, despite an 18% decrease in fees compared to the same time frame in 2009.

Barclays Capital, Credit Suisse and Bank of America Merrill Lynch saw the strongest year-over-year increases within the Top 10.

Here's the full Top 20 league table in terms of fees for the period 01/01/10 - 30/09/10:

Source - Thomson Reuters

1. JPMorgan - $3.7bn in fees (-18% compared to Q1-Q3 09), 6.5% share

2. Bank of America Merrill Lynch - $3.4bn (+8.9%), 6.0% share

3. Goldman Sachs - $3.0bn (+2.8%), 5.3% share

4. Morgan Stanley - $2.8bn (+5%), 4.9% share

5. Deutsche Bank - $2.3bn (+1.4%) 4%

6. Credit Suisse - $2.2bn (+12.8%), 4% share

7. Citi - $2.2bn (-13%), 3.9% share

8. Barclays Capital - $1.9bn (+17.9%), 3.4% share

9. UBS - $1.8bn (-5.5%), 3.1% share

10. RBS - $1.0bn (-27.9%), 1.8% share

11. BNP Paribas - $954m (-22.2%), 1.7% share

12. Nomura - $938.7m (+29.3%), 1.6% share

13. Mizuho Financial Group - $884.3m (+39.7%), 1.5% share

14. RBC Capital Markets - $878.4m (+42%), 1.5% share

15. Wells Fargo & Co - $873.4m (+14.6%), 1.5% share

16. HSBC Holdings - $822.7m (-12.2%), 1.4% share

17. Lazard - $711.0m (+33.6%), 1.2% share

18. Rothschild - $571.7m (+22.4%), 1.0% share

19. Sumitomo Mitsui Finl Grp Inc - $526.3m (+93.5%), 0.9% share

20. Mitsubishi UFJ Financial Group - $526.3m (-17.6%), 0.9% share

And here's some other interesting observations on the fee front:

State-Owned Entities Bolster The United States And China As Top Fee Payers

The United States and China topped the global fee payer ranking for the first nine months of 2010, with a total of $2.2bn paid to investment banks this year. Government Sponsored Enterprises, Fannie Mae and Freddie Mac, accounted for 96% of the fees paid by the US, while state-owned Chinese entities such as AgBank, CNPC, and PetroChina accounted for an even mix of fees from the equity and debt capital markets.

Financials And Energy & Power Account For 41% Of Global Investment Banking Fee Pool

Investment Banking activity in the Financials and Energy & Power sectors accounted for 41% of the global fee pool during the first half of 2010, with a collective gain of 6% over this time last year. High Technology and Consumer Products saw the highest year-over-year gains with increases of 52% and 45%, respectively.

Equity Capital Markets Fees Down 15%: Only Asset Class To See Year-Over-Year Decline

M&A advisory fees totalled $20.4bn through the first nine months of 2010, an increase of 37% over 2009, and accounted for 35% of the global fee pool, compared to 28% during the first nine months of 2009. Fees from equity capital markets underwriting decreased 15% to $14.5bn, compared to $17.1bn this time last year.

Source - Thomson Reuters

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