UK investment banks have witnessed their worst year for fee revenue since 2002 this year, thanks to the grim economy and markets, data from Dealogic showed yesterday.
The UK’s banks generated just $2.5bn (£1.6bn) of revenue in the past nine months, slashing their share of the global market to only 4.6 per cent, almost half the level it has historically gained.
The damage to the banks was most acute in the past three months, when UK investment banking revenue crashed to just $509m, the lowest since 1997. The UK’s share of the global market fell to just 3.8 per cent.
The shocking figures reflect the battered state of financial markets, where investors have suffered multiple blows to confidence this year over Eurozone countries’ debt burdens and stuttering global growth.
IPOs worldwide fared just as badly, raising half as much in the past three months as they did a year ago in the worst quarterly performance since mid-2009.
Companies globally raised just $27.6bn in the quarter, while the number of new IPOs dropped 15.8 per cent to 267.
London was hit still harder, with the number of new IPOs coming to market in the quarter slumping 63.3 per cent from 2010’s level, to 12 deals worth just $645.9m.
The figures confirm that the IPO market have worsened later in the year, with volatility in July and August sending equity market activity off a cliff in the third quarter.
Global IPOs have raised $142.5bn in 2011 so far, a far smaller 7.5 per cent decline compared to 2010. The UK raised $4.8bn in the year to date – just 6.8 per cent down from a year earlier.