Barclays Underwrites More Equity Deals Than Any Other European Investment Bank In Q2

by Trefis Team
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The four largest European investment banks reported an overall strong showing for the second quarter of 2017 thanks to improving market conditions. However, their U.S. rivals ate into their market share for the period – reducing the combined market share of these European banks from almost 16% in the previous quarter to just over 14% in Q2 2017.

Equity underwriting volumes for individual banks were taken from Thomson Reuters’ latest investment banking league tables. 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.

Over recent years, the four largest European investment banks have seen their fortunes dwindle in the global securities market, as the U.S. investment banking giants have capitalized on their strength in the U.S. and Europe to expand their presence in the rapidly growing Asia-Pacific region as well. However, there is considerable competition among the European banks to garner a larger share of equity underwriting activity in Europe – something that results in their relative rankings changing from quarter to another.

This time around, Barclays helped companies raise the most cash through IPOs and FPOs – supplanting UBS in the top spot. That said, an important contributor to the total deal size for Barclays was the bank’s decision to sell a bulk of its stake in subsidiary Barclays Africa Group Limited (BAGL) for $2.9 billion – a transaction which was led by the bank’s own equity underwriting unit. Barclays was assisted in the deal by Citigroup, Deutsche Bank and UBS. We capture the impact of changes in Barclays’ equity underwriting market share on its operating performance through our forecast for the bank’s total advisory & underwriting deal volume (shown below).

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

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