How Have M&A Advisory Fees For The Largest U.S. Investment Banks Changed Over The Last 5 Quarters?
M&A advisory fees for the five largest U.S. banks have been around $2.5 billion on average over the last five quarters. As the M&A industry in itself has seen notable fluctuations in the level of activity over this period, their share of total fees has fluctuated between 30% and 42%.
| Fees (in $ million) | Q2 2015 | Q3 2015 | Q4 2015 | Q1 2016 | Q2 2016 |
| Goldman Sachs | 821 | 809 | 879 | 771 | 794 |
| Morgan Stanley | 423 | 557 | 516 | 591 | 497 |
| JPMorgan | 466 | 503 | 622 | 585 | 466 |
| Bank of America | 276 | 391 | 408 | 346 | 333 |
| Citigroup | 258 | 243 | 303 | 227 | 238 |
| U.S. Top 5 Total | 2,244 | 2,503 | 2,728 | 2,520 | 2,328 |
| Industry Total | 7,512 | 7,275 | 8,234 | 6,028 | 7,136 |
| => U.S. Top 5 as % of Total | 30% | 34% | 33% | 42% | 33% |
Total M&A advisory fees for the industry are taken from Thomson Reuters’ latest investment banking league tables. Figures for individual banks are as reported as a part of their quarterly results.
Goldman routinely captures the largest share of the global M&A industry – something that has helped the bank report much higher fee revenues than its peers each quarter. To put things in perspective, Goldman’s average M&A advisory fees for the last 5 quarters has been just above $800 million, while those of Morgan Stanley and JPMorgan have been around $525 million. Weak economic conditions over recent quarters have undoubtedly weighed on these revenues for the U.S. investment banks, though. With the European region struggling to grow its economy, the U.K.’s decision to exit the EU will only make things worse on the M&A front over subsequent quarters. As these investment banks have a commanding share of the European M&A industry, we expect their fee revenues to remain depressed over coming quarters.
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See the links below for more information and analysis about the 5 largest U.S. investment banks:
- What Was The Total Size Of M&A Deals In Q2 For Major U.S. Investment Banks?
- How Much In M&A Advisory Fees Did The 5 Largest U.S. Investment Banks Generate In Q2 2016?
- How Have M&A Advisory Fees For The 5 Largest U.S. Investment Banks Changed Since 2010?
- How Much In Debt Origination Fees Did The 5 Largest U.S. Investment Banks Generate In Q1 2016?
- How Much In Equity Underwriting Fees Did The 5 Largest U.S. Investment Banks Generate In Q1 2016?
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