How Much In Equity Underwriting Fees Did The Largest U.S. Investment Banks Earn In Q1?

The five largest U.S investment banks reported $1.7 billion in equity underwriting fees in Q1 2018 – almost identical to the figure reported in Q1 2017 as well as Q4 2017. However, as total equity underwriting fees for all investment banks globally fell to below $4.9 billion from ~$5.1 billion over the comparable quarter (according to data compiled by Thomson Reuters), the wallet share of the U.S. investment banking giants rose to above 35% for the first time since Q1 2016.

We capture the trends in equity underwriting fees for each of these investment banks over recent years in detail as a part of our interactive model, while also forecasting how this revenue is likely to change in 2018. We highlight key observations related to their equity underwriting fees below.

The table below details the trend in equity underwriting 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. These banks usually capture around 33% of the global equity capital market wallet share for any given quarter – highlighting their strong grip over the industry.

Total equity underwriting 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.

Notably, four of these five banks have figured at the top of the list in the last five quarters in terms of highest fees for a quarter. While Bank of America has held the #5 position in three quarters, Morgan Stanley has fared the best on two occasions. While Morgan Stanley’s expertise in tech IPOs has given it an edge over competitors over recent years, the bank has also gained from its strong showing in the Asia Pacific region (where global underwriting volumes have seen considerable growth).

Details about how changes to Equity Underwriting Fees (and other Investment Banking Fees) affect the share price of these banks can be found in our interactive model for Goldman Sachs | JPMorgan | Morgan Stanley | Bank of America | Citigroup

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