Debt deals drive global investment banking fees

Total investment banking revenues rose in the first quarter, led by a surge in debt offering activity, according to new data from LSEG Data & Analytics.

Global banking fees came in at US$26.7 billion for the first three months of 2024, rising 5% from the previous quarter, and essentially flat with the same quarter last year.

Debt underwriting fees rose 17% year over year to US$10.3 billion, driving the quarterly total.

Other segments of the business posted lower aggregate fees, compared with the first quarter of 2023.

Fees from mergers and acquisitions declined by 12% to US$7.1 billion; syndicated lending revenues were down 11% to US$5.8 billion; and equity underwriting fees dipped 3% to US$3.5 billion, LSEG reported.

The usual Wall Street giants continued to lead the investment banking league tables, with JP Morgan holding onto top spot, with an estimated 8.1% overall market share, representing US$2.2 billion in total fees.

Goldman Sachs stayed in second place, with an estimated 6.7% share, followed by BofA Securities. Morgan Stanley and Citi rounded out the top five, the report said.

A trio of Canadian banks also climbed the rankings, led by RBC Capital Markets in 10th place overall, up one spot from 2023.

TD Securities also moved up to 15th position in the global league tables, from 21st place in 2023; and, BMO Capital Markets took 22nd, up from 23rd last year.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.