Investment banking fees at record high in 2017

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Buoyed by a recovery in equity issuance, global investment banking fees rose 16 by per cent to an estimated $104 billion in 2017, the Media data shows.

This is the highest level since its records began in 2000.

The rebound in fees to above pre-crisis highs will be welcome news for global advisors who complain they are being squeezed by regulatory requirements amid competition from boutique players.

 

Following a downbeat 2016, investment banking fees for equity products rose 41.5 per cent to $22 billion on an issuance recovery.

Fees for bonds beat mergers and acquisitions as the number one product, rising almost 15 per cent to $31 billion.

Japan Post Holdings Company Limited, the biggest follow-on offering of the year, and Japanese SoftBank Group Corp, which agreed to buy a large number of shares of Uber Technologies Inc in late December, were the biggest corporate clients of 2017 – paying out $382 and $378 million, respectively.

Japan saw 50 per cent rise in total fees to $5.5billion

Blackstone Group was the biggest financial sponsor fee payer, shelling out $679 million, an increase of 87 per cent over the previous year.

JP Morgan was the biggest global investment banking earner of the year once again, racking up an estimated $6.7 billion in fees.