Dealogic - IB Revenue Statshot

Insightful analysis of Investment Banking Revenue trends around the world

March 11th 2016

US Banks' Share of European IB Revenue Highest Since 2000 YTD

By Bahareh Khezr

41% US banks’ share of European core IB revenue

Core Investment Banking (M&A/ECM/DCM) revenue from European clients totals $2.5bn in 2016 YTD, down 21% from $3.2bn last YTD. US banks account for 41% of European core IB revenue in 2016 YTD, up from 36% last YTD and is the highest since 2000 YTD. Additionally, US banks account for the top three banks for European core IB revenue in 2016 YTD and the three account for 23% of the wallet.

54% European banks’ share of revenue

Conversely, European banks account for 54% of European core IB revenue in 2016 YTD, down from 59% in 2015 YTD and is the lowest wallet share since 2000 YTD (also 54%). Five of the top 10 banks are European and these five banks account for 21% of total fees.

However European banks account for 68% of European ECM and DCM revenue, versus 24% for US banks, in 2016 YTD. Deutsche Bank leads the European Capital Markets (ECM/DCM) ranking in 2016 YTD with a 7.9% wallet share, followed by Barclays (7.1%) and HSBC (6.6%). Last YTD Goldman Sachs led the European Capital Markets rankings with an 8.1% wallet share, driven by its 17.5% wallet share and number one ranking in ECM.

M&A US banks take majority of revenue

US banks account for 61% of European M&A revenue in 2016 YTD, their highest share on record, and up from 49% in 2015 YTD. European banks account for only 37%, down from 47% in 2015 YTD. JPMorgan ranks first with an 11.9% wallet share, followed by Goldman Sachs (11.5%) and Bank of America Merrill Lynch (8.0%).

JPMorgan Lead bank for European core IB revenue

JPMorgan leads the European core IB revenue ranking in 2016 YTD with an 8.5% wallet share. Goldman Sachs (7.8%) and Bank of America Merrill Lynch (6.8%) round out the top three.

 

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February 18th 2016

US IB Revenue at Lowest YTD Total Since 2012

By Paul Harman

$3.3bn Slowest start for US IB revenue in four years

After peaking in 2013 with $38.2bn, US Investment Banking (IB) revenue dropped for two consecutive years in 2014 ($37.8bn) and 2015 ($36.5bn), the first year-on-year annual declines since the 2008/2009 period (down 12%). Continuing into 2016, US IB revenue of $3.3bn is down 29% on 2015 YTD ($4.7bn), the lowest total generated since the comparable period of 2012 ($3.3bn)

For the third consecutive YTD period, M&A leads US IB revenue, with $1.5bn. While revenue has dropped 20% year-on-year, 2015 ($1.9bn) and 2016 are the two biggest YTD periods on record for US M&A revenue

$648m DCM revenue lowest since 2000 YTD

US DCM revenue of $648m is down 50% year-on-year and the lowest since 2000 YTD ($535m). Both Investment Grade (IG) and High Yield (HY) revenues have fallen sharply on 2015 YTD, down 45% and 67% respectively. Revenue from US IG bonds ($347m) is the lowest since 2010 YTD ($270m) while HY ($143m) revenue is the lowest since 2009 ($100m) and the sixth lowest YTD total on record

The largest US IG bond of the year so far is Apple’s $12.0bn deal, priced on February 16, the fifth largest Technology bond on record from a US issuer alongside the $12.0bn deal from Apple in April 2014

83% Year-on-year decline in US IPO revenue

Only four US IPOs have been priced so far in 2016, generating $41m in revenue, down from 25 IPOS in 2015 YTD ($241m) and the third lowest YTD total on record – behind 2003 ($17m) and 2009 ($40m). Total US ECM revenue ($424m) is down 59% year-on-year, after having surpassed the $1bn mark in 2015 for the first YTD period since 2000 ($1.8bn)

JPMorgan leads US IB revenue ranking

With a 13.2% share, JPMorgan leads the US IB revenue ranking for 2016 YTD, followed by Bank of America Merrill Lynch and Morgan Stanley with 9.5% and 9.1%, respectively

 

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February 5th 2016

January Global Core IB Revenue at Lowest Level Since 2012

By Corey Staiti

$3.9bn Slowest start in four years

Global core investment banking* (IB) revenue of $3.9bn in January 2016 was the lowest for the month since January 2012 ($3.8bn) and down 21% on $4.9bn earned in the same month last year. M&A led global core IB revenue with $1.6bn, a 17% drop year-on-year ($1.9bn) following three years of consecutive increases for the month of January

ECM Lowest revenue since 2009 with few IPOs

ECM fees of $750m recorded the biggest drop year-on-year across all products, down 37% and the lowest January revenue since 2009 ($470m). With far fewer IPOs – activity was down 38% year-on-year and it was the least active January since 2012 (38 IPOs) – revenue was down 83%. 31 of the 41 IPOs priced in January were from the Asia Pacific region

DCM revenue of $1.5bn was down 15% from $1.8bn earned in January last year. Investment grade revenue increased by 12% to $947m, helped by Anheuser-Busch InBev’s $45.8bn bond priced on January 13, the second largest syndicate bond on record by deal value

China bucks the trend with record January

With $756m, China generated the most fees for any January on record, fueled by record high DCM revenue of $341m – a 184% hike on January 2015 ($120m). The US led overall revenue with $1.6bn, a 37% drop on January 2015 ($2.5bn)

JPMorgan ranks top for global core IB

JPMorgan led the global core IB revenue ranking for January 2016, with 7.9% wallet share, followed by Morgan Stanley and Bank of America Merrill Lynch, with 7.2% and 6.2%, respectively

*Core IB includes DCM, ECM, and M&A 

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December 31st 2015

US ECM Revenue at Lowest Level Since 2012

By Janice Chow

  • US ECM revenue totals $6.7bn in 2015, dropping to the lowest annual total since 2012 ($5.7bn) and down 15% from $7.9bn generated in 2014
    • ECM has recorded the lowest revenue amongst all products for US IB revenue ($36.2bn) in 2015, accounting for an 18% share of the total, down three percentage points from 2014 and the lowest since 2012 (18%). M&A, DCM and Loans account for 37%, 25% and 20% shares respectively in 2015 YTD
  • US IPO revenue of $1.7bn in 2015 is down 36% from 2014 ($2.7bn), and is the lowest annual total since 2012 ($1.5bn). Revenue from follow-ons ($4.2bn), however, is on par year-on-year (also $4.2bn in 2014). Convertibles are down 19% year-on-year to $799m, the lowest since 2012 ($476m)
    • While US issuer IPO volume of $61.0bn in 2014 was the highest annual total in over a decade ($64.1bn in 2000), volume of $32.9bn in 2015 stands at the lowest level since 2009 ($17.5bn)
  • Healthcare is the top sector for US ECM revenue with a record high $2.0bn in 2015, up 33% from $1.5bn in 2014, and topping the industry ranking for the first year on record
    • On February 24, 2015, US issuer Actavis priced a $9.2bn simultaneous offering via a $5.1bn convertible and a $4.2bn follow-on. The convertible portion of the deal is the largest ECM transaction by volume from a Healthcare issuer on record globally, while the follow-on is the third largest on record
  • JPMorgan leads the US ECM revenue ranking in 2015 with an 11.1% wallet share. Goldman Sachs and Morgan Stanley complete the top three with 9.6% and 8.9%, respectively

 

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December 17th 2015

Global Industrials M&A Revenue at Second Highest Level on Record

By Justin Zeth

  • Global Industrials M&A revenue totals $3.2bn in 2015 YTD, up 7% compared to 2014 YTD ($3.0bn), and is the second highest YTD level on record after 2007 ($4.3bn)
  • The US accounts for $1.7bn of global Industrials M&A revenue in 2015 YTD, the highest YTD level on record. France and Germany follow with $179m and $164m, respectively
  • $5bn+ Industrials M&A deals account for $830m in revenue, more than three times 2014 YTD, and is the highest YTD level on record
    • On December 11, 2015, Dow Chemicals and El du Pont de Nemours announced a $68.6bn merger of equals, the second largest Industrials M&A deal by value on record after Vodafone AirTouch acquired Mannesmann for $172.0bn in November 1999
  • Goldman Sachs leads the global Industrials M&A revenue ranking in 2015 YTD with a 10.5% wallet share, followed by Morgan Stanley (9.0%) and JPMorgan (8.4%)

 

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IB Revenue = DCM, ECM, Syndicated Loans and M&A

Core IB Revenue = DCM, ECM and M&A 

Dealogic revenue figures are based on disclosed fees where available.  In instances where fees are not disclosed, Dealogic projects estimates based on historical disclosed precedents across dozens of statistically tested variables and thousands of individual fee scenarios.