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Global fees up 22% to record US$160bn

 | Updated:  |  Christopher Spink

Almost every major bank enjoyed a rise in investment banking fees last year after revenue across the industry from debt and equity underwriting, M&A advisory and syndicated loans increased 22% to a record US$159.5bn, according to Refinitiv data.

JP Morgan and Goldman Sachs led the charge and extended their lead as the top two banks, after fees leapt 40% and 38% from 2020, respectively (see P&M front page story).

Jefferies also had a stunning year and its fees jumped 44% from a year earlier to US$2.9bn, thanks to a strong year in equity capital markets and M&A advisory.

Jefferies ranked ninth for global fees last year, from 12th in 2020, leapfrogging Wells Fargo, RBC and BNP Paribas, who all lost market share.

BMO Capital Markets, the investment bank arm of Bank of Montreal, also had a stellar year and jumped to 20th in the global fee rankings, from 31st in 2020. Its fee revenue increased 56% to US$1.42bn and it advised on 1,962 deals, compared to 1,548 the year before.

BMO was the only newcomer to the top 20 firms from 2020. It meant the top 20 included eight US banks, six European banks, two Canadian firms, and four Asian banks – with two apiece from China and Japan.

The big five US banks kept a firm grip on the top positions. Morgan Stanley moved ahead of Bank of America into third, and Citigroup completed the top five positions.

Credit Suisse just managed to retain sixth position thanks to a strong showing in M&A advisory, where it has a 3.5% market share. Its total fees rose a modest 8% to US$4.6bn, putting it just US$86m ahead of Barclays, which remained in seventh place after a 19% rise in fees.

Deutsche Bank kept its eighth spot, but was some way behind its European rivals, recording US$3.1bn of fees overall, up 25% on the previous year.