How Much In Debt Origination Fees Did The 5 Largest U.S. Investment Banks Generate In Q3?
The 5 largest U.S investment banks generated just under $3.6 billion in debt origination fees in Q3 2016 – roughly 32% of the total $11-billion figure for the industry.
Debt origination fees for these banks were largely similar to the figures seen in the previous quarter, as global debt capital market activity remained upbeat in Q2 and Q3 after a particularly weak showing over the previous three quarters. The share of these five banks has largely remained around the 33% mark over the last five quarters, as seen below.
| Fees* (in $ million) | Q3 2015 | Q4 2015 | Q1 2016 | Q2 2016 | Q3 2016 |
| JPMorgan | 840 | 602 | 531 | 885 | 943 |
| Bank of America | 748 | 617 | 669 | 889 | 908 |
| Citigroup | 525 | 616 | 530 | 805 | 701 |
| Goldman Sachs | 557 | 440 | 509 | 724 | 625 |
| Morgan Stanley | 374 | 346 | 239 | 345 | 364 |
| U.S. Top 5 Total | 3,044 | 2,621 | 2,478 | 3,648 | 3,568 |
| Industry Total | 8,543 | 8,878 | 7,640 | 10,031 | 11,002 |
| => U.S. Top 5 as % of Total | 36% | 30% | 32% | 36% | 32% |
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* 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.
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.
There has been a visible shift in debt origination activity towards emerging markets this year, though. As debt markets in emerging economies are highly fragmented (with local players garnering a sizable share) this translated into a lower share of the global debt origination deal size for the U.S. banking giants. This in turn led to the reduction in wallet share for these banks from 36% in Q2 2016 to 32% in Q3 2016.
JPMorgan replaced Bank of America to pocket more debt origination fees than any other global investment bank in Q3, after the latter held the top spot for three consecutive quarters. You can see how changes to Bank of America’s debt origination fees affects our estimates for the diversified banking giant by modifying the chart below.
See the links below for more information and analysis about the 5 largest U.S. investment banks:
- How Did Major U.S. Investment Banks Fare In The Global Debt Origination Industry Over Q3?
- How Have Debt Origination Deal Volumes For U.S. Investment Banks Changed In The Last 5 Quarters?
- How Much In Debt Origination Fees Did The 5 Largest U.S. Investment Banks Generate In 2015?
- How Have Debt Origination Fees For The 5 Largest U.S. Investment Banks Changed Since 2010?
- How Much In M&A Advisory Fees Did The 5 Largest U.S. Investment Banks Generate In 2015?
- How Much In Equity Underwriting Fees Did The 5 Largest U.S. Investment Banks Generate In 2015?
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