HSBC moves into top 10 as JP Morgan leads

IFR 2236 2 June to 8 June 2018
7 min read
Americas, EMEA, Asia
Christopher Spink

HSBC looks to be making a move in capital markets globally under new chief executive John Flint, who succeeded Stuart Gulliver at the end of February.

Over the first five months of the year, HSBC has moved up two places to ninth in the table of global investment banking fees compared with the same period a year ago, according to data from Thomson Reuters.

Overall industry fees to the end of May were down 11% from a year ago to US$39.69bn, but HSBC has done better than all others in the top 10, with a 4% dip in fees to US$842m. That has allowed it to leapfrog RBC Capital Markets and Wells Fargo.

JP Morgan remains top of the overall fees table, generating US$2.87bn from 1,656 transactions.

The fees cover M&A advisory, debt and equity underwriting and syndicated lending. HSBC’s rise comes despite problems in its M&A business, where it has lost a number of senior dealmakers this year (see separate story).

The data show HSBC is performing particularly well in debt capital markets, sitting sixth with US$475.5m in fees from bonds alone. That makes up over half the bank’s total fee income.

Flint has said he wants to grow its lending activity onshore in China, making the most of its Asian heritage. However, the bank is only 13th for loan fees globally and 14th for fees from Asia-Pacific and Japan.

Morgan Stanley, Goldman Sachs, Citigroup, JP Morgan, Credit Suisse, UBS and Deutsche Bank are all ahead of it in terms of investment banking fees in the region. The table is topped by regional powerhouses, Bank of China, Mizuho and Sumitomo Mitsui.

HSBC has had a stellar year in Europe, the Middle East and Africa, ranking fourth for fees in the region.

Overall, bond issuance has been weaker this year, on the back of rising rates in the US. DCM deal volumes globally are down 9% year-on-year to US$3trn. Equity capital markets volumes are down 2% year-on-year to US$321bn and loans are 15% lower at US$1.63trn, according to Thomson Reuters data.

M&A is the stand-out market, with US banks Morgan Stanley, Goldman Sachs and JP Morgan dominating. The total value of announced deals is up 68% to US$2.11trn.

Global Investment Banking Fees: May 2018
Global Investment Banking Fees: May 2018
Managing bank or groupNo of issuesTotal US$(m)Share (%)
​ 1JP Morgan1,6562,865.607.2
2Goldman Sachs1,0442,411.906.1
3BofA Merrill Lynch1,5802,062.605.2
4Morgan Stanley1,3992,028.805.1
5Citigroup1,4841,841.304.6
6Barclays1,1391,387.103.5
7Credit Suisse8971,367.703.4
8Deutsche Bank1,0281,193.603
9HSBC1,196841.72.1
10RBC CM9648242.1
11Wells Fargo & Co1,145774.92
12Mizuho Financial1,3677241.8
13UBS495704.31.8
14MUFG1,072691.81.7
15BNP Paribas852667.91.7
16Sumitomo Mitsui1,161655.41.7
17Bank of China995524.91.3
18Jefferies352509.61.3
19Credit Agricole CIB531408.11
20SG CIB481386.11
Total​20,34939,694.70
Americas Investment Banking: May 2018
Americas Investment Banking: May 2018
Managing bank or groupNo of issuesTotal US$(m)Share (%)
1JP Morgan1,1461,881.809.6
2Goldman Sachs6141,608.008.2
3BofA Merrill Lynch1,1711,555.307.9
4Morgan Stanley7231,322.406.7
5Citigroup8801,088.705.5
6Barclays6838654.4
7Credit Suisse504790.94
8Wells Fargo & Co1,074714.13.6
9RBC CM790672.83.4
10Deutsche Bank490600.43
Total​7,37919,696.00
Asia-Pacific & Japan Investment Banking: May 2018
Asia-Pacific & Japan Investment Banking: May 2018
Managing bank or groupNo of issuesTotal US$(m)Share (%)
1Bank of China925478.94.9
2Mizuho Financial870459.64.7
3Sumitomo Mitsui832458.54.7
4Morgan Stanley472368.13.7
5Citic1,105346.43.5
6MUFG608342.33.5
7Goldman Sachs200318.63.2
8Citigroup229304.23.1
9JP Morgan107303.33.1
10Credit Suisse154284.62.9
Total​9,0229,830.50
EMEA Investment Banking: May 2018
EMEA Investment Banking: May 2018
Managing bank or groupNo of issuesTotal US$(m)Share (%)
1JP Morgan403680.66.7
2Barclays337485.74.8
3Goldman Sachs233485.34.8
4HSBC453452.94.5
5Citigroup377448.54.4
6Deutsche Bank361400.83.9
7BNP Paribas395360.83.5
8BofA Merrill Lynch247342.23.4
9Morgan Stanley206338.23.3
10Credit Suisse240292.12.9
Total​4,09710,168.10
Global Bonds: May 2018
Global Bonds: May 2018
Managing bank or groupNo of issuesTotal US$(m)Share (%)
1JP Morgan861852.46.9
2BofA Merrill Lynch814717.95.8
3Citigroup897692.45.6
4Goldman Sachs533640.65.2
5Barclays688533.24.3
6HSBC829475.53.8
7Morgan Stanley903467.93.8
8Deutsche Bank616460.33.7
9Credit Suisse4933933.2
10Wells Fargo & Co6693332.7
Total​11,27712,395.7 ​
Global Equities: May 2018
Global Equities: May 2018
Managing bank or groupNo of issuesTotal US$(m)Share (%)
1Morgan Stanley209693.58.2
2Goldman Sachs163679.18.1
3JP Morgan167615.37.3
4Citigroup154445.15.3
5BofA Merrill Lynch114388.64.6
6Credit Suisse108365.94.3
7Deutsche Bank852873.4
8UBS83258.63.1
9Barclays78245.92.9
10RBC CM84142.51.7
Total​2,3298,421.30
Global Loans: May 2018
Global Loans: May 2018
Managing bank or groupNo of issuesTotal US$(m)Share (%)
1BofA Merrill Lynch592571.76.6
2JP Morgan523561.76.5
3MUFG709466.45.4
4Bank of China232368.14.3
5Mizuho Financial471349.14
6Sumitomo Mitsui503348.94
7Citigroup359316.53.7
8Barclays310291.43.4
9Wells Fargo & Co408284.73.3
10Deutsche Bank286282.93.3
Total​3,7898,649.50