Goldman loses ground as BofA Merrill, Deutsche climb

IFR 2039 28 June to 4 July 2014
7 min read
Americas, EMEA, Asia
Spencer Anderson

Goldman Sachs continued to lose ground against its biggest rivals in June, dropping to third in the league of fees earned from investment banking activity from the second place it has held on to for much of the year after a relatively poor month in bonds.

Its market share fell by 40bp to 6.2%, the lowest so far this year, as it pulled in fees of US$440m during the month. That was significantly less than its closest rivals JP Morgan and Bank of America Merrill Lynch, which topped the table with June fees of US$589m and US$597m respectively.

The firm seems to have been hit by a decline in advisory fees, where Goldman dominates, with June lacking some of the big mergers and acquisitions seen earlier this year. The firm slipped to seventh in bond underwriting, which tends to be the biggest fee source for most big firms.

This year is lining up to be a bumper one for most banks, with fees from dealmaking reaching US$44.6bn in the first half, a 6% improvement on a year ago. In total there were US$9.1bn worth of deals in June, up from US$7.9bn in May.

JP Morgan remains the name to beat, topping the global fees table again and even increasing its share by 20bp during the month. The lender was helped by Italian Wind’s €2.1bn high-yield deal. It also topped the Americas, EMEA, bond and loan fee tables.

It was another solid month as well for Morgan Stanley, which topped the remaining two categories of Asia-Pacific and Japan investment banking and global equity – although its market share in equities fell by 40bp.

Lower down in the top 10, Citigroup overtook Deutsche Bank for fifth place. However Deutsche has put in the biggest improvement during the first half compared with a year earlier. Its total fee haul of US$2.2bn is 20% up on last year.

Global investment banking fees: June 2014
Global investment banking fees
ManagingNo ofTotalShare
bank or groupissuesUS$(m)(%)
1JP Morgan2,2413,262.607.3
2BofA Merrill Lynch2,0902,796.006.3
3Goldman Sachs1,3192,775.306.2
4Morgan Stanley1,6922,626.005.9
5Citigroup1,6652,232.005
6Deutsche Bank1,7582,214.705
7Barclays1,5702,067.304.6
8Credit Suisse1,2251,999.804.5
9UBS7871,152.502.6
10RBC Capital Markets1,3101,140.602.6
11Wells Fargo & Co1,3191,098.102.5
12HSBC Holdings1,752924.32.1
13BNP Paribas1,080844.91.9
14Jefferies393661.31.5
15Nomura807652.81.5
16RBS1,020562.11.3
17Mizuho Financial Grp1,320534.71.2
18Sumitomo Mitsui Finl Grp1,278520.11.2
19Mitsubishi UFJ Final Grp1,115498.41.1
20BMO Capital Markets750488.71.1
Total19,72644,686.70
Americas investment banking: June 2014
Americas investment banking
ManagingNo ofTotalShare
bank or groupissuesUS$(m)(%)
1JP Morgan1,5362,220.709.1
2BofA Merrill Lynch1,5202,057.308.4
3Goldman Sachs7271,753.607.2
4Morgan Stanley8301,575.006.4
5Citigroup9751,449.005.9
6Barclays8601,364.705.6
7Credit Suisse7131,327.305.4
8Deutsche Bank8541,254.605.1
9Wells Fargo & Co1,2391,039.304.3
10RBC CM1,075963.33.9
Total​8,28124,444.60
Asia-pacific & Japan investment banking: June 2014
Asia-pacific & Japan investment banking
ManagingNo ofTotalShare
bank or groupissuesUS$(m)(%)
1Morgan Stanley563474.16.4
2Nomura513436.15.9
3Mizuho Financial9593564.8
4Sumitomo Mitsui934341.34.6
5Goldman Sachs275277.63.7
6UBS171255.13.4
7BofA Merrill Lynch261233.33.2
8Mitsubishi UFJ549231.83.1
9Daiwa Securities Group435214.22.9
10Citigroup295207.62.8
Total​6,4907,406.40
EMEA investment banking: June 2014
EMEA investment banking
ManagingNo ofTotalShare
bank or groupissuesUS$(m)(%)
1JP Morgan540848.26.6
2Deutsche Bank633772.36
3Goldman Sachs336744.15.8
4Barclays541603.74.7
5Morgan Stanley315576.94.5
6Citigroup412575.44.5
7BNP Paribas575563.14.4
8BofA Merrill Lynch329505.43.9
9Credit Suisse350489.63.8
10HSBC628476.43.7
Total​5,24012,835.70
Global bonds: June 2014
Global bonds
ManagingNo ofTotalShare
bank or groupissuesUS$(m)(%)
1JP Morgan1,0049667.9
2Citigroup904757.46.2
3BofA Merrill Lynch926735.56
4Deutsche Bank1,068727.66
5Morgan Stanley1,092723.76
6Barclays891637.35.2
7Goldman Sachs703636.55.2
8Credit Suisse634526.74.3
9HSBC1,199447.43.7
10Wells Fargo & Co579396.83.3
Total​9,22512,161.1 ​
Global equity: June 2014
Global equity
ManagingNo ofTotalShare
bank or groupissuesUS$(m)(%)
1Morgan Stanley273878.27.2
2Goldman Sachs229831.46.8
3JP Morgan271777.86.4
4BofA Merrill Lynch246708.35.8
5Citigroup214616.65.1
6Deutsche Bank204542.74.5
7Credit Suisse228537.84.4
8Barclays183448.93.7
9UBS193439.23.6
10Nomura102315.42.6
Total​2,83212,144.50
Global loans: June 2014
Global loans
ManagingNo ofTotalShare
bank or groupissuesUS$(m)(%)
1JP Morgan840832.17.8
2BofA Merrill Lynch821829.77.8
3Deutsche Bank4116245.8
4Credit Suisse269542.25.1
5Barclays395513.44.8
6Citigroup458495.34.6
7Morgan Stanley199395.13.7
8Goldman Sachs216382.53.6
9Wells Fargo & Co5753693.4
10Mitsubishi UFJ735347.63.2
Total​4,55910,700.00