Last year was a bleak one for investment banking, and things do not look likely to bounce back this year.
Merger and acquisition (M&A) fees were the most affected, down 35% for the year to date, reaching their lowest point in nine years. M&A activity totals $1.3tn for the year to date, down 38% compared to the same period last year, according to LSEG Deals Intelligence.
Syndicated lending fees declined 21%, while debt capital markets fees fell 2%. Although up 11% for the year to date, equity capital markets fees are at their third lowest point in the past 20 years, with only 2022 and 2016 seeing lower totals.
At an estimated $49.4bn, global investment banking fees earned globally so far during 2023 are down 16% from the same period last year. This is the lowest first half total since 2016.
The drop in fees follows a more complicated dealmaking environment. A number of the largest US and European investment banks are cutting staff and pay as revenues continue to weaken.
