DEUTSCHE Bank is top of the European investment banking hierarchy, according to figures released yesterday that show the company has earned more fees than any of its rivals so far in 2013.
According to data provider Dealogic, Deutsche has taken $677m (£439m) from its European investing banking business this year – equivalent to 8.2 per cent of the entire market – largely thanks to strong demand for bond issues.
JP Morgan and Goldman Sachs took second and third place respectively, well ahead of the chasing pack.
Investment banks have taken $8.2bn in European fees during the first half of the year but, in a sign of changing corporate attitudes, an enormous 42 per cent of this came from debt capital markets (DCM) revenue. DCM includes matters such as bond issues and refinancing.
Businesses have increasingly turned to the debt markets to raise funds as others sources of money have dried up and dealmaking has ground to a halt.
The changing marketplace also means that for the first time ever more fees were earned by issuing European high yield – or junk – bonds than through investment grade debt.
Equity capital markets (ECM) revenue grew 21 per cent year-on-year to $1.3bn as leading stock markets showed the first signs of recovery and major European companies decided to take the risk of going public.
But there will be glum faces elsewhere in the investing banking world. The dearth of dealmaking activity meant M&A earnings slumped 18 per cent year-on-year to just $2bn during the first half of this year. At the same time syndicated bank loan revenue fell by seven per cent to $1.4bn.
Global investment banking revenue totalled $34.2bn during the period.