How Much In M&A Advisory Fees Did The 5 Largest U.S. Investment Banks Generate In Q3?
The 5 largest U.S investment banks generated almost $2.3 billion in M&A advisory fees in Q3 2016 – roughly 28% of the total figure for the industry.
Notably, this is a sharp reduction in wallet share for these banks from the 42% figure for Q1 and is also well below the 33% figure for the previous quarter. While the total estimated M&A fees globally have jumped 35% from $6 billion in the first quarter to $8.1 billion in the third quarter, total fees for the U.S. banks have declined for three consecutive quarters now. This would indicate that non-U.S. investment banks played important roles in many of the largest deals that closed over recent quarters.
| Fees (in $ million) | Q3 2015 | Q4 2015 | Q1 2016 | Q2 2016 | Q3 2016 |
| Goldman Sachs | 809 | 879 | 771 | 794 | 658 |
| Morgan Stanley | 557 | 516 | 591 | 497 | 504 |
| JPMorgan | 503 | 622 | 585 | 466 | 542 |
| Bank of America | 391 | 408 | 346 | 333 | 328 |
| Citigroup | 243 | 303 | 227 | 238 | 239 |
| U.S. Top 5 Total | 2,503 | 2,728 | 2,520 | 2,328 | 2,271 |
| Industry Total | 7,275 | 8,234 | 6,028 | 7,136 | 8,112 |
| => U.S. Top 5 as % of Total | 34% | 33% | 42% | 33% | 28% |
Total M&A advisory fees for the industry are taken from Thomson Reuters’ latest investment banking league tables. Figures for individual banks are as reported as a part of their quarterly results.
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Goldman routinely captures the largest share of the global M&A industry – something that has helped the bank report much higher fee revenues than its peers in nearly every single quarter. To put things in perspective, Goldman’s average M&A advisory fees for the last 5 quarters has been $780 million, while the average figure for Morgan Stanley and JPMorgan has been around $535 million. Weak economic conditions over recent quarters have weighed on these revenues for the U.S. investment banks, though, with the volume of announced M&A deals falling sequentially.
That said, the volatile nature of the M&A industry has been responsible for these banks’ market share fluctuating between 28% and 42% over recent quarters. It must be remembered here that 11 of the 15 largest deals announced this year (which have these banks playing major roles) are still pending. The banks are, therefore, expected to report handsome revenue gains once these deals are finalized over coming quarters.
See the links below for more information and analysis about the 5 largest U.S. investment banks:
- What Was The Share Of Major U.S. Investment Banks In The Global M&A Industry For Q3?
- How Have Total M&A Deals Closed By Major U.S. Investment Banks Trended In The Last 5 Quarters?
- How Much In M&A Advisory Fees Did The 5 Largest U.S. Investment Banks Generate In 2015?
- How Have M&A Advisory Fees For The 5 Largest U.S. Investment Banks Changed Since 2010?
- How Much In Equity Underwriting Fees Did The 5 Largest U.S. Investment Banks Generate In 2015?
- How Much In Debt Origination Fees Did The 5 Largest U.S. Investment Banks Generate In 2015?
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