Estimated fees generated by global investment banking activities totaled US$103.9 billion during full year 2017, a 16% increase compared to the previous year and the highest annual total for IB fees since our records began in 2000. Estimated fees in the Americas reached US$51.3 billion, the region’s second largest full year total since 2007. Investment banking activity in the Asia-Pacific region totaled US$21.6 billion in fees, a 16% uptick compared a year ago and the region’s highest annual total on record. Similarly, fees in Japan hit an all-time high of US$5.5 billion, a 50% increase compared to 2016.
Stability at the Top of Global Investment Banking Fee Rankings; JP Morgan Retains the Top Spot; the Top Ten Banks Lose a Collective 0.6 Wallet Share Points
JP Morgan retained the top spot in the global investment banking rankings, earning an estimated US$6.7 billion in fees, or 6% of global wallet share. Goldman Sachs and Citi retained the second and fifth rankings, respectively, from last year. Bank of America Merrill Lynch took the third spot, up from fourth last year, while Morgan Stanley fell to fourth. The top five banks, by fees, all registered double-digit growth in IB fees compared to a year ago, accumulating a collective 27% of global wallet share.
Financials Fees Accounts for 30% of the Overall Fee Pool; Technology Fees Down 10%; Fees in Consumer Products, Telecoms, and Retail Register Sharp Growth
Fees generated by Financials-related transactions during full year 2017 comprised the largest share of the global fee pool with US$31.6 billion in fees, a 27% increase compared the previous year. Fees generated by transactions in the Technology sector totaled US$7.2 billion, a 10% decrease compared to 2016. Estimated IB fee revenue from the Consumer Products, Telecommunications, and Retail sectors all registered sharp growth compared to a year ago, increasing 35%, 41%, and 38% percent, respectively. JP Morgan topped the fee rankings in the five largest sectors of the year.
Financial Sponsor Fees Up 24%; Blackstone Group and Goldman Sachs Top the Financial Sponsor Rankings
IB fees produced by financial sponsors and their portfolio companies totaled a collective US$12.2 billion during full year 2017, a 24% uptick compared to full year 2016. Imputed fees from portfolio company activities accounted for 36% of the overall fee wallet, or US$4.32 billion. M&A exits constituted the next largest share with US$4.28 billion in fees. The Blackstone Group took the top spot in the Financial Sponsor rankings, up from third last year, with an 87% increase in fees paid. Goldman Sachs retained the top spot for Investment Banks, earning an estimated US$1.1 billion in fees.
Mergers & Acquisition Fees Up 2%; Debt Capital Markets Fees Up 15%; Equity Capital Markets Up 42%; Syndicated Lending Fees Up 16%
The M&A advisory fee pool totaled US$28.1 billion during full year 2017, a 2% increase compared to the last year, and accounted for 27% of the global fee pool. Debt capital markets underwriting generated US$31.3 billion in fees, up 15% compared to the previous year and the highest annual total for DCM on record. Fees from equity capital markets underwriting reached US$22.4 billion during full year 2017, with Follow-On offerings and IPOs constituting 57% and 35% of ECM fees, respectively. Syndicated Lending fees registered a 16% uptick compared to a year ago, contributing US$22.2 billion to global fee pool.
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