Largest U.S. Banks To Report Sequential Decline In Debt Origination Fees Despite Improved Wallet Share

January 5th, 2018 by Trefis Team
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The five largest U.S. investment banks saw their total debt origination volumes shrink 10% compared to the figure for the previous quarter – faring better than the overall industry that declined by 22% over the same period. While this helped the combined market share of these banks improve from just 23% in Q3 2017 to almost 27% in Q4 2017, this is likely not enough to mitigate the impact of subpar industry activity on these banks’ debt origination fees – especially since Thomson Reuters estimates a steep 24% reduction in total fees for the industry.

Debt origination 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.

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It should be noted that the largest debt capital market deals employ more than one investment bank, and the market share figures here factor in the proportion of the total proceeds generated by a particular bank.

Noticeably, Citigroup grabbed a larger share of the market than any other investment bank globally over Q2 and Q3, as the bank gained from the sharp increase in debt capital market activity in India, Mexico, Brazil and Russia – emerging economies where the bank has a much larger presence than many of its peers. The chart below captures Citigroup’s share of the global debt origination market. You can see how changes to this metric affects our price estimate for the geographically diversified banking giant by modifying our forecast here.

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

See full Trefis analysis for Goldman Sachs | JPMorgan | Morgan Stanley | Bank of America | Citigroup

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