Investment-banking fees in Europe, growing faster than in Asia and the Americas, are set to reach a seven-year high as sales of debt and stock and a buoyant U.K. economy outweigh stagnant income from trading.
Bloomberg News reports that revenue from arranging mergers, stock and bond sales and loans in Europe, the Middle East and Africa climbed 30% to $17.3bn for the seven months ended in July, compared with the year-earlier period, according to data compiled by New York-based research firm Freeman & Co. this month.
Fees are on pace to rise as much as 35% this year and may surpass $30 billion, Freeman estimates, the most since $39.6 billion was collected in 2007, as mergers and acquisitions pick up. Share and bond offerings and M&A have been bright spots for securities firms as fixed income, commodities and currency trading, known as FICC, stays depressed and prompts banks such as Barclays Plc (BARC) and Credit Suisse Group AG (CSGN) to cut staff.
'There’s life after FICC for the diversified investment banks,' said Scott Moeller, a professor of corporate finance at London’s Cass Business School and former banker.
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