* Global fees fell 11 percent, Thomson Reuters data shows
* Worldwide M&A activity slips 22 percent as merger mania
By Anjuli Davies
LONDON, Oct 4 Investment banking fees in the
Americas, the most lucrative region in the world, fell by nearly
a fifth in the first nine months of 2016 from a year earlier,
outpacing a global decline, Thomson Reuters data shows.
Global fees for services ranging from merger and
acquisitions advisory services to capital markets underwriting
fell 11 percent to $60.9 billion to the end of September, the
slowest nine months for fees since 2012.
In the Americas, fees fell 19 percent to total $32 billion,
still over half the global pool. In Europe, the Middle East and
Africa (EMEA) they fell 12 percent to $14.7 billion, whilst in
Asia Pacific they increased 19 percent to $9.6 billion.
Thomson Reuters M&A data shows the euphoria that drove
merger mania in 2015 has subsided, with worldwide M&A activity
down 22 percent year-on-year to $2.4 trillion in the first nine
months of 2016.
The stock market is hovering at record highs, while the S&P
500 Index's price-to-earnings ratio is at its highest level
since the 2008 financial crisis. Uncertainty over the U.S.
Federal Reserve's policy on interest rates, Britain's vote to
leave the European Union and fears of a slowdown in China have
made companies more cautious when it comes to M&A.
Equity capital market fees saw the steepest decline of 29
percent compared to a year ago to total $11.4 billion, dragged
down by a 41 percent drop in fees from initial public offerings.
Fees from underwriting bond deals rose 9 percent to $18.9
billion and M&A revenue declined 7 percent to $18.8 billion,
compared to a year ago.
JPMorgan topped the global league table for fees,
pulling in $3.2 billion during the first nine months, a decline
of 10 percent compared to a year earlier, followed by Goldman
Sachs and Bank of America Merrill Lynch.
None of the European investment banks made it into the top
five, and Deutsche Bank, beset by woes, slipped one position to
rank number nine, with a 27 percent decline in investment
banking fees to total $1.2 billion for the first nine months of
Despite a rise in Asia investment banking fees, U.S.
investment banks Goldman Sachs and Bank of America
Merrill Lynch are each cutting investment bankers in the
region in response to declining advisory fees and heightened
Whilst Morgan Stanley topped the league table for
fees in the Asia Pacific region, the next three banks - CITIC,
Industrial and Commercial Bank of China and Bank of China - are
(Reporting by Anjuli Davies; Editing by Adrian Croft)