Global investment banking
fees fell by nearly a quarter in the first half of 2016 from a year earlier as
market volatility hit capital markets and M&A deal making, data published by Reuters on Monday showed.
Global fees for services
ranging from merger and acquisitions advisory services to capital markets
underwriting fell 23 percent to $37.1 billion at the end of June, the slowest
first half for fees since 2012.
While 2015 was a record year
for M&A, 2016 is shaping up to be a record year for 'broken' deals, as the
United States flexes its antitrust muscle and seeks to crack down on deals that
aid tax avoidance or risk harming national security.
Coupled with market
volatility triggered by Britain's vote to leave the European Union, this has
dented some of the confidence required by corporate boards to approve deals and
companies to push the button on capital markets activity.
Equity capital markets fees
saw the steepest decline of 43 percent compared to a year ago to total $7.3
billion, dragged down by a 56 percent drop in fees from initial public
offerings.
Fees from underwriting bond
deals fell 11 percent to $11.4 billion and M&A revenue declined 15 percent
to $11.5 billion, compared to a year ago.
Regionally, fees in the
Americas totaled $19.9 billion, down 26 percent from last year. Fees in Europe
were also down 26 percent at $8.4 billion and the Asia-Pacific region saw a 10
percent decline to $6.7 billion.
JPMorgan (JPM.N) topped the
global league table for fees, pulling in $2.6 billion during the first half, a
decline of 23 percent compared to a year earlier, followed by Goldman Sachs
(GS.N) and Bank of America Merrill Lynch (BAC.N).
No comments:
Post a Comment