Global investment banking (IB) revenue nosedived in 9M22, battered by market volatility brought on by geo-political tension, surging inflation, soaring interest rates, and dampened corporate ardor. As mergers and acquisitions (M&A), equity capital markets (ECM) and fixed-income volumes and deal count cratered, so IB fees were down 39% in the year to date (YTD; to 30 September) to USD 60bn, marginally higher than the USD 58bn netted in 2019 prior to the advent of the pandemic.
It has not been all doom and gloom, though. Fees from M&A fell only 12% to USD 27bn in 2022 YTD, and it still marked the third-highest year on Dealogic record. By contrast, ECM collapsed 68% to USD 9bn, as equity markets all but shut down. Fees from both debt capital markets (DCM), or bond markets, and syndicated loans slumped 40% to USD 15bn and USD 9bn, respectively.
JPMorgan and Goldman Sachs dominated the first two places among revenue earners so far this year, as they have done for the past eight years. BofA Securities edged out last year’s third-place incumbent, Morgan Stanley.
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