EMEA investment banking fees lag peers across globe

INVESTMENT banking fees in Europe, the Middle East and Africa (EMEA) slipped far behind the rest of the world over the first three quarters of the year, with the region’s banks taking a 15.2 per cent cut in fees in comparison to an 8.7 per cent global increase.

Globally, the fee income pool for investment banks rose to $57.65bn (£36.35bn). The biggest proportion of this came from the Americas, which saw fees boosted 20.7 per cent to $28.92bn compared to the first nine months of 2009, while Asia-Pacific recorded the fastest fee growth, up by over a quarter to $8.69bn.

The EMEA region was alone across the globe in recording a fall, taking investment banking fees down to $15.92bn in a tumultuous period which saw the overwhelming debt burdens on fiscally-challenged Eurozone states threaten to plunge the entire area into chaos.

Across all fee revenue streams – investment banking, bonds, equity, loans and M&A – JP Morgan pulled in the most in fees, taking 6.4 per cent of the global market. In the EMEA region, Bank of America Merrill Lynch dominated with 4.9 per cent.

Goldman Sachs was the top-ranked global M&A adviser, acting on 6.5 per cent of the world’s deals.

In total, M&A advisory fees rocketed up 37 per cent over the period to $20.4bn, as improving economic conditions heralded a boom in the number of deals coming to market. The only asset class to record a year-on-year decline was equity capital markets, where fees dropped 15 per cent to $14.5bn.