Global investment banking fees drop 31% to lowest level in two years

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Investment banking fees hit $28.1 billion in the first quarter of 2022, down 31% from the first quarter of 2021, according to data available with Refinitiv.

This is the slowest opening period for IB global fees since 2020.

Fees during the first quarter of 2022 were down 34% from the fourth quarter of last year, which ranked as the largest quarter for fees on record, the global data provider said.

The Americas contributed 49% of all fees generated globally with $13.7 billion, down 39% from 2021 levels.

Fees charged in EMEA decreased 29% to $6.3 billion in the first quarter of 2022.

“The deal-making environment has seen a number of changes in the first quarter of 2022 which have had a major impact on investment banking fees, including equity market volatility, rising interest rates, inflation and updating central bank guidance and policies,” Matthew said. Toole, Director, Deals Intelligence, Refinitiv.

“Coupled with the conflict in Ukraine, the confidence we’ve seen from companies to pursue a merger or tap into capital markets over the past few years has largely been put on hold as conditions are reassessed,” he said. he added.

Total IB fees in Asia Pacific and Japan reached $8.0 billion, down 15% from Q1 2021 levels.

JP Morgan retained the top spot for investment banking fees collected in the first quarter of 2022 with $1.9 billion, gaining an industry-leading 6.7% market share. Goldman Sachs remained in second place with around 6.5% of the global portfolio share. BofA Securities took third place with $1.5 billion in fees, followed by Morgan Stanley and Citi.

Completed M&A advisory fees were up 8% from a year ago, with fees of $9.8 billion worldwide.

With the decline in the number of IPOs, follow-ups and convertibles, ECM underwriting fees totaled $3.5 billion during the first quarter of 2022, a decline of 73% from the levels of 2021.

DCM’s underwriting fees were down 19% from the first quarter of 2021, while fees from the syndicated loan business were $5.0 billion, down 25% from a year ago. a year, Refinitiv said in its review.

(Reporting by Seban Scaria; editing by Daniel Luiz)

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