What Was The Market Share Of The Largest U.S. Banks In Global Equity Capital Markets For Q4 and FY 2016?
Global equity capital markets ended the year 2016 on a low, as companies around the globe raised less than $176 billion through IPOs and FPOs for the last quarter – a reduction from the $190 billion figure in the previous quarter and the much higher $208 billion raised a year ago. [1] With equity underwriting levels remaining depressed over the first three quarters, the total deal volume for full year 2016 was less than $655 billion – a far cry from the average annual figure of $850 billion over 2013-15.
Notably, the weakness stemmed from poor U.S. equity market conditions for most of the year. Stock prices in the country only rallied over the last two months of the year after Trump’s victory in the U.S. presidential elections. In fact, U.S.-listed IPOs for the year were at the lowest level since 2003. This did not hurt the market share of the country’s largest investment banks, though, as they garnered a ~32% share of the global equity underwriting market in terms of total deal volumes for Q4 2016 thanks to their strong international presence.
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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 detailed here are not exclusive.
Notably, JPMorgan raced ahead of competitors in 2016 thanks to its role in 335 equity underwriting deals for the year – well above the 264 deals its nearest competitor Morgan Stanley worked on – and garnered the top spot in terms of total deal volume in three of the four quarters (except Q2). This helped the diversified banking giant report the largest market share for full-year 2016.
JPMorgan’s strong performance for the year is largely due to its strength in the EMEA (Europe, Middle East and Africa) region, which saw a sizable increase in equity underwriting activity in the wake of the Brexit announcement. JPMorgan also captured the largest market share in the U.S. On the other hand, Morgan Stanley maintained a strong grip among these banks on developing economies, as it garnered the largest share in Latin America as well as Asia. You can see how changes in Morgan Stanley’s share of the equity underwriting industry impact our price estimate for the bank’s shares by modifying the chart below.
See the links below for more information and analysis about the 5 largest U.S. investment banks:
- How Much In M&A Advisory 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?
- How Much In Equity Underwriting Fees Did The 5 Largest U.S. Investment Banks Generate In 2015?
- How Have Equity Underwriting Fees For The 5 Largest U.S. Investment Banks Changed Since 2010?
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- Global Equity Capital Markets Q4 2016, Thomson Reuters Deals Intelligence [↩]