How Have Debt Origination Fees For U.S. Investment Banks Changed Over The Last Five Quarters?
The five largest U.S. banks saw their debt origination fees swell considerably in Q2 2016 from the sub-par levels seen over the previous two quarters thanks to a strong improvement in debt market activity around the globe. These banks pocketed more than 36% of total debt underwriting fees worldwide for the quarter – up from a wallet share of around 30% in Q4 2015 and Q1 2016.
Fees* (in $ million) | Q2 2015 | Q3 2015 | Q4 2015 | Q1 2016 | Q2 2016 |
Bank of America | 887 | 748 | 617 | 669 | 889 |
JPMorgan | 907 | 840 | 602 | 531 | 885 |
Citigroup | 729 | 525 | 616 | 530 | 805 |
Goldman Sachs | 603 | 557 | 440 | 509 | 724 |
Morgan Stanley | 528 | 374 | 346 | 239 | 345 |
U.S. Top 5 Total | 3,654 | 3,044 | 2,621 | 2,478 | 3,648 |
Industry Total | 10,579 | 8,543 | 8,878 | 7,640 | 10,031 |
=> U.S. Top 5 as % of Total | 35% | 36% | 30% | 32% | 36% |
* Total debt origination fees for the industry include fees from syndicated loans
Total debt origination fees for the industry are taken from Thomson Reuters’ latest investment banking league tables. Figures for individual banks are as reported in their quarterly results.
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The global debt origination industry is dominated by JPMorgan, Citigroup and Bank of America along with U.K.-based banking giant Barclays. These four banks usually capture the largest share of the market in a given quarter, and also pocket the most fees. While Goldman Sachs and Morgan Stanley report similar market shares each quarter in terms of deal size, Goldman generally reports higher revenue figures as it plays key roles in some of the largest deals that are completed over a quarter. Notably, Morgan Stanley reported debt origination fees that were less than half of Goldman’s in Q2 2016, although the total size of debt capital deals both banks participated in was nearly identical (around $70 billion).
See the links below for more information and analysis about the 5 largest U.S. investment banks:
- How Much In Debt Origination Fees Did The 5 Largest U.S. Investment Banks Generate In Q2 2016?
- How Have Debt Origination Deal Volumes For U.S. Investment Banks Changed In The Last 5 Quarters?
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