Yesterday Thomson Reuters released their list of the top 10 investment banks in 2012 but shows a 14% fall in worldwide fees.
Total income across all sectors (including everything from capital markets to M&A advisory) was just £32.1bn ($51.9bn) for the first 9 months of 2012 with JP Morgan pipping Bank of America Merrill Lynch to the first place spot in the league table.
Europe was worst hit by the fall in fees of 27.6% in part due to the reduced number of major IPOs. The death of major flotations was reflected in the growing importance of fee income from debt capital markets, as companies increasingly choose to raise funds through bond issues rather than the stock markets.
Top Investment Banks in 2012
- JP Morgan ($3.9bn)
- Bank of America Merrill Lynch ($3.3bn)
- Goldman Sachs ($2.9bn)
- Morgan Stanley ($2.8bn)
- Citi ($2.6bn)
- Credit Suisse ($2.4bn)
- Barclays ($2.3bn)
- Deutsche Bank ($2.3bn)
- UBS ($1.6bn)
- Wells Fargo ($1.4bn)
Another study released by Hedge Fund Intelligence yesterday revealed the extent to which banks are relying on hedge funds to make up for lost income by providing services such as stock lending, financing and trade execution. Data suggests that Goldman Sachs is now the biggest brokerage service supplier to the secretive industry with more than 900 mandates and $222.6bn of assets. Credit Suisse and JP Morgan come second and third in the ‘prime broker’ league table.