Q1 Was The Best Ever First Quarter For U.S. Investment Banks In Terms Of Debt Origination Fees
The 5 largest U.S investment banks generated $3.74 billion in debt origination fees in Q1 2017 – making it the best first quarter for these banks in history. In fact, these banks have together made more money from debt capital markets on only two other occasions in the past: in Q4 2012 ($3.83 billion) and Q2 2014 ($3.79 billion).
The sharp recovery in debt origination activity in the U.S. over the first quarter was primarily responsible for the jump in fee revenues. While the first quarter is a seasonally strong period for the industry, there was also a rush among U.S. companies to raise debt capital before additional rate hikes by the Fed. Debt origination fees for these five banks increased 16% from the figure for the previous quarter, and jumped by more than 50% compared to the figure a year ago as they made the most of the situation – increasing their wallet share to an extremely strong 39%.
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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 completed over a quarter.
Bank of America retained the top spot in terms of total debt origination fees for the second consecutive quarter. The diversified banking giant has now pocketed more fees in the industry than any other global investment bank in five of the last six quarters (except Q3 2017). 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:
- JPMorgan’s Q1 Debt Originations Were The Best By Any Bank In Five Years
- How Have Debt Origination Deal Volumes For U.S. Investment Banks Changed In The Last 5 Quarters?
- How Much In Equity Underwriting Fees Did The 5 Largest U.S. Investment Banks Generate In 2016?
- How Much In Debt Origination Fees Did The 5 Largest U.S. Investment Banks Generate In 2016?
- How Much In Total Advisory & Underwriting Fees Did The 5 Largest U.S. Banks Earn In 2016?
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