UBS Closes 2017 With Best Equity Underwriting Performance Among European Investment Banks

January 8th, 2018 by Trefis Team
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The fourth quarter of 2017 was an overall good period for global equity capital markets thanks to a notable recovery in deal activity in the U.S. and Europe, and UBS made the most of the improved market conditions to capture the largest share of the market among European investment banking giants. The Swiss bank’s market share improved to 4.6% in Q4 2017 from around 3.5% over the previous two quarters, while the combined market share of the four largest investment banks also increased marginally compared to the previous quarter.

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, and the market share figures here factor in the proportion of the total proceeds generated by a particular bank.

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Over recent years, the four largest European investment banks have seen their fortunes dwindle in the global securities market, as the U.S. investment banking giants have capitalized on their strength in the U.S. and Europe and expanded their presence in the rapidly growing Asia-Pacific region as well. However, there is considerable competition among the European banks to garner a larger share of equity underwriting activity in Europe – something that results in their relative rankings changing from quarter to another.

Notably, the five largest U.S. banks garnered the top five positions in the global equity capital market for full-year 2017. However, UBS’s strong performance in Asia and Australia in Q4 helped the bank leapfrog to the 4th position globally for the quarter – ahead of Bank of America and Citigroup. You can see how changes in UBS’s share of the equity underwriting industry impact our price estimate for the bank’s shares by modifying the chart below.

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