A Look At The Equity Underwriting Market Shares Of European Investment Banks In Q4

by Trefis Team
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Trefis
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Credit Suisse
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The four largest European investment banks saw equity underwriting volumes shrink for a second consecutive quarter in Q4 2016 as companies in the EMEA (Europe, Middle East and Africa) region continued to shy away from new equity offerings in the wake of the Brexit vote. [1] Although total equity underwriting deal volumes in EMEA improved from $37 billion in Q3 to $45 billion in Q4, this was well below the $60 billion figure for Q2. This coupled with the dominance of U.S. investment banks in the region’s largest deals resulted in the global market share for these four banks remaining under 14% for the second consecutive period after crossing 20% in Q2.

IB_QA_EU_ECMShare_16Q4

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.

IB_QA_EU_ECMShare_16FY

Credit Suisse topped the list of European investment banks in terms of total equity capital market deal size for Q4 as well as full-year 2016 thanks to its overall strong performance in the U.S. as well as Australia. Notably, the Swiss bank gained from a decline in Deutsche Bank’s market share over the second half of 2016 as the German banking giant’s brand image took a hit due to capital concerns. This is evident from the fact that Deutsche Bank’s market share for full-year 2016 is close to that for Credit Suisse, although the latter reported a comfortable lead in Q3 and Q4 2016.

You can see how changes in Credit Suisse’s share of the equity underwriting industry impact our price estimate for the bank’s shares by modifying the chart below.

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

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Notes:
  1. Global Equity Capital Markets Q4 2016, Thomson Reuters Deals Intelligence []
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