What Was The Share Of Major European Investment Banks In The M&A Industry For Q3?

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The global M&A industry was unable to replicate the strong performance seen in the second quarter over Q3, and saw the volume of new deals shrink 21% quarter-on-quarter. [1] However, the largest European investment banks reported a sizable increase in the volume of M&A deals announced for the period – in sharp contrast to the sequential decline reported by their U.S. investment banking peers. This discrepancy stems from fact that deal volumes in Europe actually nudged 2% higher in Q3 compared to Q2, allowing these banks to leverage their strength in the region to garner a larger market share. The U.K. alone witnessed a 116% jump in volume of M&A deals announced.

IB_QA_EU_MnA_Ann_16Q3

The impact of higher M&A activity in Europe in the aftermath of the unexpected Brexit vote is also visible in the volume of M&A deals completed by these banks. Taken together with the strong pipeline of deals built over the last few quarters, the banks gained some market share from U.S. banks over the quarter, with Barclays jumping to the #3 globally in terms of M&A deals completed (after Goldman and JPMorgan).

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IB_QA_EU_MnA_Comp_16Q3

It should be noted that the largest M&A deals employ many investment banks, so the market share figures in either table are not exclusive.

Notably, Credit Suisse stands out as the only one among these European investment banking giants to report a sequential reduction in volume of deals completed – and a large one at that. Because of this, the second largest Swiss bank fell from the #1 position in the list (which it held for four consecutive quarters) to #4 this time around. You can see how changes to Credit Suisse’s share of completed M&A deals globally affect our estimate for the bank’s share price by modifying the chart below.

See full Trefis analysis for Barclays | Credit Suisse | Deutsche Bank | HSBC | UBS

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Notes:
  1. Investment Banking League Tables, Thomson Reuters Deals Intelligence []