U.S. Investment Banking Giants Generated More Than $2.5 Billion In Advisory Fees In Q2

by Trefis Team
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Goldman Sachs
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The five largest U.S investment banks reported $2.55 billion in M&A advisory fees in Q2 2017 – making it the best quarter for the banks in this regard since Q4 2015.

Total advisory fees for these banks in Q2 were 6% higher than the figure for the previous quarter, and were also well above the average figure of $2.35 billion for the Q2 2016 – Q1 2017 period. However, there was a notable reduction in their wallet share to below 27% from around 30% in Q1 2017. This is primarily because of the sharp sequential increase in M&A advisory fees in the Asia-Pacific region, even as the Americas and EMEA (Europe, Middle East and Africa) region nudged lower. The largest investment banks face stiff competition from local players in Asia – especially in China – which negatively impacts their wallet share in the region.

The table details the trend in M&A advisory 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 M&A advisory 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.

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 over the years. Goldman’s average M&A advisory fee figure for the last 10 quarters has been almost $800 million, while the average figure for Morgan Stanley and JPMorgan has been closer to $500 million. In fact, Goldman has reported more M&A advisory fees than any other investment bank in the world each of the last 25 quarters. The bank achieves this primarily due to its involvement in key roles for many of the largest deals that close over a period.

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

See the full Trefis analysis for Goldman SachsJPMorganMorgan StanleyBank of America | Citigroup

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