Investment banking fees review

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Global IB Fees Up 12%; Strongest Start for IB Fees since 2007 | JP Morgan Takes Top Spot | Fees from ECM Up 36%; DCM Fees Down 0.6%

Global Investment Banking Fees Total US$47.1 billion; Strongest Start for IB Fees since 2007; European IB Fees Up 29%

Fees for global Investment Banking services, from M&A advisory to capital markets underwriting, totaled US$47.1 billion during the first half of 2014, a 12% increase over last year at this time and the strongest annual start for fees since 2007 (US$56.8 billion). Fees in Europe totaled US$13.1 billion, a 29% increase from 2013 while fees in the Americas increased 6% and Asia Pacific fees increased 10%. Fees in Japan increased 3% compared to a year ago, while fees in Africa/Middle East fell 15% compared to 2013 levels.

JP Morgan Takes Top Spot for Global Investment Banking Fees; Deutsche Bank and Barclays Pick Up Combined 1.2 Share Points

JP Morgan topped the global investment banking league table during the first half of 2014 with US$3.4 billion in fees, or 7.3% of overall wallet-share. Bank of America Merrill Lynch booked US$3.0 billion in investment banking fees during the first half of 2014 for second place despite a decrease of 0.6 wallet-share points. While the composition of the top ten investment banks remained nearly unchanged during the first half, five of those firms have changed rank position this year. Within the top 10, just Deutsche Bank, Barclays and Morgan Stanley saw increased share compared to a year ago.

Healthcare, Retail and Technology IB Fees Register Strong Double-digit Percentage Gains

Investment banking activity in the financials, energy & power and industrials sectors accounted for 55% of the global fee pool during the first half of 2014. Bank of America Merrill Lynch topped the fee rankings in five sectors during the quarter, with double-digit wallet- share in the retail sector. JP Morgan registered an industry-leading position in four industry categories, including 11.9% wallet-share in the media and entertainment sector. Fees from deal making in the healthcare, retail and technology sectors saw strong double-digit percentage gains compared to the first half of 2013.

Debt Capital Markets Fees Fall 0.6%; IPOs Push Equity Capital Markets Fees Up 36%; M&A Fees Up 6%

Fees from debt capital markets underwriting totaled US$12.6 billion, down 0.6% compared to last year's tally and accounted for 27% of overall IB fees during the first half of 2014, down from 30% a year ago. Driven by a 43% increase in fees from IPOs, equity capital markets underwriting fees totaled US$13.0 billion during the first half, up 36% from a year ago. M&A advisory fees totaled US$10.1 billion during first half 2014, an increase of 6% over the same period last year, and accounted for 21% of the global fee pool, while fees from syndicated loans increased 10% compared to first half 2013.

Financial Sponsor-related Fees Up 45% from 2013; Blackstone Group LP Tops Financial Sponsor Rankings

Investment banking fees generated by financial sponsors and their portfolio companies reached $5.8 billion during the first six months of 2014, an increase of 45% compared to 2013. Fees generated from leveraged buyouts accounted for 42% of financial sponsor- related fees during the half, while ECM exits accounted for 36% and M&A exits comprised 14% of overall fees. Blackstone Group LP and related entities generated $288 million in investment banking fees this year, an increase of 90% compared to levels seen during the first half of 2013, while Goldman Sachs collected an industry-leading 8.0% of financial sponsor-related fees during the first half.

Source: Thomson Reuters

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