Brisk Growth In U.S. IPOs Helps U.S. Investment Banks Increase Global Equity Underwriting Market Share

by Trefis Team
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23.80
Market
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Trefis
BAC
Bank of America
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As U.S. equity issuances recover from the slump witnessed over most of 2016, the country’s largest banks have seen their fortunes in the equity capital market improve over the last two quarters – helping them secure a 36% share of the market compared to a figure of below 32% on average over 2016.

The chart below captures the total size of equity capital market deals completed by the five largest U.S. investment banks since Q2 2016. The green-to-red shading for figures along a row show the variations in deal size for a particular bank over this period.

Equity underwriting volumes for individual banks were taken from Thomson Reuters’ investment banking league tables for the last five quarters. The table below captures the respective market shares for each of these banks over this period. The green-to-yellow shading for figures in a quarter should help compare the relative standings of these 5 banking giants in a particular quarter.

It should be noted that the largest equity capital market deals (IPOs and FPOs) employ more than one investment bank, so the market share figures are not exclusive.

Notably, the five largest U.S. investment banks have captured the top five ranks in the global equity underwriting league table for almost every quarter over recent years. They witnessed a sizable reduction in their overall market share over the last three quarters of 2016, though, due to a sharp increase in equity underwriting volumes in developing markets (particularly China) over this period. This is because most global investment banks have yet to gain a strong foothold in the fragmented Chinese securities market. But U.S. IPO activity has been strong over the first half of 2017, and equity capital market activity in the EMEA region has also returned to normal since an unexpected Brexit vote last June disrupted the industry.

You can see how changes to Bank of America’s share of the equity underwriting industry impact our price estimate for the bank’s shares by making changes to the chart below.

See the links below for more information and analysis about the 5 largest U.S. investment banks:

See full Trefis analysis for Goldman SachsJPMorganMorgan StanleyBank of America | Citigroup

View Interactive Institutional Research (Powered by Trefis):
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