How Have Debt Origination Fees For U.S. Investment Banks Changed Over The Last Five Quarters?

August 24th, 2016 by Trefis Team
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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:

See full Trefis analysis for Goldman Sachs | JPMorgan | Morgan Stanley | Bank of America | Citigroup

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