What Was The Share Of Major European Investment Banks In Global Debt Origination For Q4 and FY 2016?

by Trefis Team
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Debt origination volumes for the five largest European investment banks fell sharply from $314 billion in Q3 to just over $200 billion in Q4 as the banks were hurt by a substantial reduction in debt capital market activity in the U.S. and Europe. Although the overall industry shrunk in size by 26% quarter-on-quarter, these banks witnessed a more drastic 35% fall in total deal size – something that led to their combined market share falling for the fourth consecutive quarter to below 14% from almost 22% in Q4 2015.

IB_QA_EU_DCMShare_16Q4

Debt origination volumes for individual banks were taken from Thomson Reuters’ latest investment banking league tables. It should be noted that the largest debt capital market deals employ more than one investment bank, so the market share figures are not exclusive.

The performance of these banks over full-year 2016 was much better thanks to a strong show over Q2 and Q3, though. This helped these five banks garner a 16.5% share of the nearly $7-trillion in global debt origination deals for the year.

IB_QA_EU_DCMShare_16FY

Barclays topped the list among European investment banks in terms of total deals for the second consecutive year. The U.K.-based banking giant ranked #4 globally for 2016 after JPMorgan, Citigroup and Bank of America, and is the only non-U.S. bank that made more than $1 billion in fees from its debt origination activities for the year according to Thomson Reuters’ estimates. The chart below captures Barclays’ total advisory & underwriting deal volume, which includes the total volume of M&A, equity underwriting and debt origination deals the bank closes in a particular year. You can see how changes to this figure affects our estimate for Barclays’ share price by making modifications here.

See full Trefis analysis for Barclays | Credit Suisse | Deutsche Bank | HSBC | UBS

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