Investment banking revenues in 2019 fell to their lowest levels since 2008, according to Coalition’s full-year 2019 Investment Bank Index. The index, based on data from the world’s 12 largest investment banks, shows that revenue on an industry-wide level fell by 3% year on year, from $151.4bn to $147.5bn.
This specific decline was particularly down to a weaker performance in equities, where revenue fell 10% year on year. Lower trading volumes and continued margin compression in cash equities, as well as a weaker performance in equity derivatives, including fewer strategic transactions, led to an overall decline. The investment banking division also saw revenue fall by 3%, due to a decline in cross-border merger and acquisition activity and smaller equity capital markets revenues in Europe, the Middle East and Africa. Debt capital markets, however, enjoyed a stable performance.
