How Much In Total Investment Banking Fees Did The Largest U.S. Investment Banks Earn In Q3?
The 5 largest U.S investment banks roped in almost $7.1 billion in total investment banking fees in Q3 2016 – about 31% of the total figure for the industry.
Total investment banking fees include revenues generated by these banks from their M&A advisory, equity underwriting and debt origination services. Industry-wide fee figures for these services are taken from Thomson Reuters’ latest investment banking league tables.
The total fee figure fell about 2% sequentially due to a marginal reduction in M&A advisory fees and debt origination fees even as equity underwriting fees remained largely constant for these five banks. However, this is in contrast to the ~9% quarter-on-quarter increase in global advisory & underwriting fees – something that resulted in the banks’ wallet share shrinking to 31% in Q3 2016 from 34% in the previous quarter.
| Total Fees ($ mil) | Q3 2015 | Q4 2015 | Q1 2016 | Q2 2016 | Q3 2016 |
| JPMorgan | 1,612 | 1,538 | 1,321 | 1,636 | 1,855 |
| Goldman Sachs | 1,556 | 1,547 | 1,463 | 1,787 | 1,537 |
| Bank of America | 1,327 | 1,311 | 1,203 | 1,454 | 1,497 |
| Morgan Stanley | 1,181 | 1,214 | 990 | 1,108 | 1,104 |
| Citigroup | 937 | 1,125 | 875 | 1,217 | 1,086 |
| U.S. Top 5 Total | 6,613 | 6,735 | 5,852 | 7,202 | 7,079 |
| Industry Total | 18,709 | 21,099 | 16,055 | 20,925 | 22,840 |
| => U.S. Top 5 as % of Total | 35% | 32% | 36% | 34% | 31% |
Notably, these five banks pocket roughly 35% of all investment banking fees globally in a given quarter. The sizable reduction in this figure for Q3 was almost completely due to an increase in market share of Chinese players in the rapidly growing Chinese debt capital market.
Citigroup usually has the smallest wallet share among these banks for any given quarter, as the globally diversified banking giant has a smaller presence in the M&A as well as equity underwriting industries compared to its peers. The bank regularly ranks among the top-3 players in the global debt origination industry, though – ahead of Goldman Sachs and Morgan Stanley. You can see how changes to Citigroup’s debt origination fees affects our estimates for the bank by modifying the chart below.
See the links below for more information and analysis about the 5 largest U.S. investment banks:
- How Much In M&A Advisory Fees Did The 5 Largest U.S. Investment Banks Generate In Q3 2016?
- How Much In Debt Origination Fees Did The 5 Largest U.S. Investment Banks Generate In Q3 2016?
- How Much In Equity Underwriting Fees Did The 5 Largest U.S. Investment Banks Generate In Q3 2016?
- How Have M&A Advisory Fees For The 5 Largest U.S. Investment Banks Changed Since 2010?
- How Have Equity Underwriting Fees For The 5 Largest U.S. Investment Banks Changed Since 2010?
- How Have Debt Origination Fees For The 5 Largest U.S. Investment Banks Changed Since 2010?
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