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Global investment banking fees fall 8% in 2015

Tuesday, January 5, 2016 - 19:26
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Global investment banking fees fell 8 per cent in 2015 compared to a year earlier, with a boom in mergers and acquisition activity failing to offset a slump in equity and debt capital markets fees, Thomson Reuters data published on Tuesday showed.

[LONDON] Global investment banking fees fell 8 per cent in 2015 compared to a year earlier, with a boom in mergers and acquisition activity failing to offset a slump in equity and debt capital markets fees, Thomson Reuters data published on Tuesday showed.

Global fees for services ranging from merger and acquisitions advisory to capital markets underwriting totalled US$86.9 billion in 2015, the lowest annual figure since 2013.

Regionally, fees in Europe declined 16 per cent compared with a year ago, Asia Pacific fees fell 12 per cent and fees from the Americas were down by a more modest 3 per cent.

One bright spot was mergers and acquisitions (M&A), where fees from completed activity rose 8 per cent year-on-year, as worldwide M&A in 2015 rose 42 per cent to US$4.7 trillion, the strongest year for deal making on record.

Investment banking income was dragged down by a 13 per cent decline in equity capital markets fees compared to a year ago, and an 18 per cent decline in debt capital markets fees as global markets were hit by volatility sparked by global growth worries, geopolitical tensions in the Middle East and a China slowdown.

JPMorgan topped the global league table for fees, drawing in US$5.98 billion during the year, down 7.5 per cent compared to a year ago, but maintaining 6.9 per cent of the overall wallet share.

The top five banks were all American, with Goldman Sachs the only one in the top five to increase its fees intake for the year, up 6.9 per cent to US$5.94 billion.

Europe's biggest investment banks continued to lose market share, with Deutsche Bank, ranked sixth, seeing a 20 per cent year-on-year decline in fees to total US$3.45 billion, or a 0.6 per cent decline in the wallet share.

Credit Suisse saw a 13.9 per cent decline in fees to US$3.32 billion and Barclays a 11.2 per cent decline to US$3.29 billion.

REUTERS