Investment banking fees in Asia ex-Japan slide 17% to US$28.6b in 2022: Refinitiv
THE Asia-Pacific region, excluding Japan, recorded a 17 per cent year-on-year drop in investment banking fees to US$28.6 billion in 2022 – the lowest annual total since 2019.
According to Refinitiv data on Thursday (Jan 5), fees generated in the region accounted for 26 per cent of total fees earned globally, surpassing Europe, which contributed 21 per cent.
Deal-making activity in Asia ex-Japan also hit a low since 2019, slowing to US$980.3 billion in 2022. This was 36.8 per cent lower than the previous year’s record high.
A bulk of deal-making activity came from the financial sector, which comprised 18.3 per cent of market share. Deals in the sector were worth US$178.9 billion. That being said, the figure was 15.6 per cent lower than a year ago. The high technology sector, which saw the most deals, contributed to 12.8 per cent of the market share, with a total deal value of US$125.8 billion.
Although the number of special-purpose acquisition company deals grew 50 per cent compared with last year, total deal value fell 41.5 per cent to US$30.9 billion.
Meanwhile, private equity-backed deals targeting the Asia-Pacific region dropped 53.1 per cent from the previous year to US$126.8 billion.
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In the equity capital markets, underwriting fees tumbled to a three-year low of US$7.3 billion, and were down 36 per cent year on year. Debt capital markets fees fell 7 per cent to US$13.7 billion, while syndicated lending fees slid 6 per cent on the year to US$4.1 billion. Advisory fees from completed mergers and acquisitions deals were also down 13 per cent on the year to US$3.6 billion.
The amount raised from initial public offerings (IPOs) dropped 40.2 per cent to US$102.5 billion following its strongest performance on record in 2021.
Asia-Pacific IPOs accounted for 69 per cent of total global IPO proceeds, with Chinese IPOs raising US$71.1 billion and seeing the most activity. Follow-on offerings fell 50.1 per cent to US$134.4 billion, while convertible bonds dropped 51.9 per cent to US$34.3 billion in proceeds.
China’s Citic took the lead position for overall investment banking fees, generating US$1.9 billion. This was 6.7 per cent of the total Asia-Pacific investment banking fee pool.
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