Investment bankers see highest fee income at $968 million in Jan-Sept


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Investment bankers laughed their way to the bank with 41 per cent on-year more fee income at $ 967.5 million during the first nine months of 2023, despite a massive fall in deals, according to an industry analysis.

This is the highest fee collection by deal makers since records began in 2000.

According to Refinitiv, which is an LSEG (London Stock Exchange Group) business, completed M&A advisory fee jumped 34 per cent year-on-year during January-September 2023 and totalled $ 362 million, while ECM (equity capital market) underwriting fees rose by steeper 38 per cent to reach $ 194.3 million.

Debt capital market (DCM) underwriting fees totalled $ 181.7 million, a 41 per cent increase from a year ago, while syndicated lending fees grew 56 per cent to $ 229.5 million in the first nine months of 2023, Lucille Jones, an analyst at LSEG said, adding the total fee income for the sector during the period jumped 41 per cent to $ 967.5 million.

Wall Street major Citi’s domestic arm took the top position for overall investment banking fees with a total of $ 58.6 million, accounting for 6.1 per cent of the wallet share of the i-banking fee pool.

The fees rose despite a 56.6 per cent plunge in India-bound M&As to a three-year low of $ 65.6 billion in the first nine months of 2023, but the number of deals saw a 3 per cent on-year growth.

Similarly, India’s target M&As reached $ 60.5 billion, down 56.8 per cent from a year ago and the lowest first nine months period by value since 2020. Domestic M&As totalled $44.1 billion, down 59.7 per cent from the same period in 2022.

Inbound M&As fell 46.6 per cent from a year ago and totalled $16.4 billion and outbound M&As reached $4.8 billion, down 46.5 per cent on-year with the US being the most targeted nation with 24.6 per cent market share.

The majority of the deal-making activity involving India targeted the financial sector which totalled $30.6 billion, down 55.9 per cent in value and accounted for 46.7 per cent market share, followed by industrials at $7.7 billion, down 32.4 per cent and 11.7 per cent market share.

High technology, which saw the greatest number of deals announced in the period captured a 9 per cent market share with $5.9 billion worth of deals, down 71.7 per cent compared to last year.

Private equity-backed M&As amounted to $11.1 billion, down 58.1 per cent from a year ago, and the lowest first nine months period by value since 2020.

Equity capital markets (ECM) raised $ 18.4 billion in the first nine months of 2023, a 34.4 per cent increase compared to a year ago. The number of ECM offerings saw 253 equity and equity-linked issuances, up 30.4 per cent on-year.

Within the ECM space, initial public offerings (IPOs) raised $3.5 billion during the first nine months, down 38.1 per cent by proceeds, but the number of IPOs rose 35.2 per cent. Follow-on offerings, which accounted for 81 per cent of the overall ECM proceeds, raised $14.9 billion, up 85 per cent on-year, while the number of follow-on offerings grew 24.4 per cent year-on-year.

ECM issuance from the financial sector accounted for the majority of the activity with 19.8 per cent market share or $3.6 billion, down 6.2 per cent on-year. Industrials captured an 18.3 per cent market share followed by high technology and materials with 11.5 per cent and 11.2 per cent market share, respectively.

Jefferies leads the ranking in the ECM underwriting space with $2.3 billion in related proceeds and a 12.4 per cent market share.

In debt capital markets, primary bond offerings saw $65.1 billion being mopped up during the first nine months, a 39.3 per cent increase in proceeds and making it the highest first nine months period since 2019.

Financial sector issuers captured a 78 per cent market share at $ 50.8 billion, up 61.6 per cent, followed by industrials with a 5.6 per cent market share worth $3.7 billion, up 86.3 per cent.

ICICI Bank tops the ranking for bond underwriting, with related proceeds of $ 10.96 billion and accounted for 16.8 per cent market share.




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Edmund Shing, PhD

Global Chief Investment Officer
BNP Paribas Wealth Management

Edmund has over 29 years of experience in financial markets in a wide variety of positions, ranging from proprietary trading to portfolio manager in a number of financial institutions in London and Paris.  He previously held the role of Global Head of Equity and Derivative Strategy at BNP Paribas in London from 2015 to 2020, and has been Chief Investment Officer at BNP Paribas Wealth Management since November 2020.

Edmund is responsible for piloting our investment strategy and will continues to rollout out recommendations and themes with actionable advice that brings our expertise to our clients and support to our client-facing teams.  In this time of change, his expertise in following and anticipating markets is a true value added for both our customers and those at Wealth Management who serve them.

Edmund has a PhD in Cognitive and Computing Science from the University of Birmingham in the United Kingdom, and has done advanced studies in Knowledge-Based Systems and in Experimental Psychology.  He is an EFFAS-certified financial analyst. He has also authored the book “The Idle Investor” published by Harriman House in 2015, proposing 3 simple investment strategies that take only a few minutes to execute per month.

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