Q2 2017 Was A Great Period For The Largest U.S. Banks In Terms Of Investment Banking Fees

by Trefis Team
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The five largest U.S investment banks pocketed total advisory & underwriting fees in excess of $8 billion for the second quarter of the year – making it just the third time in history that these banks achieved this feat, after Q4 2009 and more recently in Q2 2015. Notably, the figure represents about a 12% jump year-on-year, and a 3% increase sequentially.

Total investment banking fees were primarily helped by an increase in debt origination activity over recent quarters, as the Fed’s rate hike process has led to many U.S. companies raising fresh debt capital at lower interest rates. As debt origination fees usually accounts for almost 50% of total investment banking fees, increased activity levels resulted in strong gains to the total figure. M&A advisory fees contributed roughly 33% of the total fees, while equity underwriting fees chipped in with the rest.

The table details the trend in total advisory & underwriting fees for each of these banks in the last five quarters. The green-to-yellow shading along a column highlights the relative performance of each bank in any given quarter.

Total advisory & underwriting fees for the industry are taken from Thomson Reuters’ latest investment banking league tables. Figures for individual banks are reported as a part of their quarterly results.

Notably, these five banks pocket roughly one-third of all investment banking fees globally in a quarter. Citigroup usually has the smallest wallet share among these banks, as it has a smaller presence in the global M&A and equity underwriting industries compared to its peers. But strong activity levels in Citigroup’s core focus area of debt origination for Q2 2017 helped the globally diversified bank edge ahead of Morgan Stanley after three consecutive quarters at the #5 position.

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):
Global Large CapU.S. Mid & Small CapEuropean Large & Mid Cap
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