How Much In Equity Underwriting Fees Did The 5 Largest U.S. Investment Banks Generate In 2016?

by Trefis Team
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The 5 largest U.S investment banks roped in $4.4 billion in equity underwriting fees in 2016 – almost 32% of the total figure for the industry.

IB_QA_US_ECMFees_FY16
Total equity underwriting fees for the industry are taken from Thomson Reuters’ latest investment banking league tables.

The chart below captures the total equity underwriting fees reported by the five largest U.S. investment banks since 2012. The green-to-red shading for figures along a row show the variations in these revenues for a particular bank over this period.

IB_QA_US_ECMFeesChange_FY16

Notably, there has been a slump in global equity underwriting fees for 2016 – in line with the sharp reduction in the volume of IPOs and follow-on stock offerings around the globe (and in the U.S. in particular) for the year. This resulted in the wallet share of the five largest U.S. banks falling to 32% from an average of 36% over 2012-15. In fact, the $4.4-billion in annual equity underwriting fees for these banks is the lowest since they reported $3.9 billion more than a decade ago in 2005.

JPMorgan surpassed Goldman Sachs to grab the top spot in global equity underwriting fees for 2016 – largely because of an extremely strong performance despite weak conditions over the second half of the year. Goldman held the top spot in each year over 2013-15, and the weakness in its 2016 figures is evident from the fact the bank’s average equity underwriting fee figure over 2006-15 was $1.44 billion.

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

See 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
More Trefis Research

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