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M&A fees up for first time in 12 months

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<div>THE global banking industry will be able to breathe a sigh of relief today after new data showed that investment banking fees rose in the second quarter of this year for the first time in 12 months.<br /><br /> According to preliminary data from Thomson Reuters, investment banks have raked in $16bn (&pound;9.8bn) so far this quarter, as cash flooded back into the system giving a boost to the lucrative mergers &amp; acquisitions (M&amp;A) they advise on.<br /><br />The figure, which is based on early readings, could rise still if more deals complete between now and the end of the quarter next Tuesday.<br /><br />But while many banks raked in more fees in the second quarter than they did in the first, M&amp;A activity in the first six months of the year remained subdued, falling to its lowest first-half level since 2003, the data shows.<br /><br />According to the report, there have been $872bn worth of global M&amp;A deals this year so far &ndash; 44.5 per cent lower than the same period a year ago.<br /><br />US investment banking giant Morgan Stanley currently tops the global M&amp;A league table, according to the data, having advised on 115 deals worth $329bn. In the first half of 2008 the bank ranked eighth in the world.<br /><br />Goldman Sachs, which was the world number one in the first half of last year, is currently in second place this year having advised on deals worth $306bn.<br /><br />The biggest global M&amp;A deal in 2009 was the acquisition of US drugs firm Wyeth by giant rival Pfizer, a deal worth $64.5bn that involved advice from seven investment banks, said the report.<br /><br />The fourth and fifth largest deals globally were the UK Treasury&rsquo;s acquisitions of shares in Lloyds, worth $22bn, and RBS, worth $19bn. <br /><br />FAST FACTS M&amp;A REPORT<br /><br />
<div>&bull;&nbsp;The financial sector has seen the most M&amp;A activity so far this year with $198.4bn of transactions accounting for 22.7 per cent of the market</div>
&bull;&nbsp;This was down 12.2 per cent compared to the first half of 2008&nbsp;</div>
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