There has been a slow start to 2018 for merger and acquisitions and syndicated lending, leading to the second quietest quarter since the start of 2014. Danielle Myles reports.

Global investment banking revenues in the first three months of the year are at a two-year low, according to data from Dealogic.

The statistics reveal that banks earned $17.096bn from mergers and acquisitions (M&A), syndicated loans and debt and equity capital markets (DCM and ECM) mandates in the first quarter of 2018. This is the second smallest quarterly figure in four years. The worst-performing quarter over that timeframe was the first quarter of 2016, when the sectors earned $16.484bn.

The first-quarter decline is due to two major factors. The first is syndicated lending, from which banks earned $2.533bn, making it the worst quarter in four years. The other is M&A, which generated $5.104bn compared with the $6bn to $7bn figures recorded over the previous seven quarters.

DCM revenues picked up slightly from the last quarter of 2017. ECM had a bumper 2017 thanks to the resurgence in initial public offerings, but revenues for the first three months of this year are back in line with 2016 levels.

All data sourced from Dealogic

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