Japanese banks see market share gains as JP Morgan extends lead

IFR 2153 1 October to 7 October 2016
7 min read

JP Morgan was well ahead of rivals as the top fee earner from M&A advisory, bond and equity underwriting and corporate loans in the first nine months of 2016, taking more than 7% market share, according to data from Thomson Reuters.

Overall fee income is down 16% from a year ago to US$57.3bn, reflecting a fall in M&A activity from last year’s record levels and a slump in equity issuance.

But the decline in overall fees from a year ago has narrowed considerably from a month ago (when fees were running 26% lower than year-ago levels) showing revenues were strong during September. That could lift optimism that banks had a decent third quarter and are improving after an awful start to 2016.

JP Morgan earned US$4.1bn in fees from working on 3,027 deals through to September 29, giving it a 7.1% share of the market and ahead of its nearest rival Goldman Sachs, which took a 6.3% share, according to the Thomson Reuters data. At the same stage of 2015, JP Morgan and Goldman were neck-and-neck, each with a market share of just under 7%.

US banks continued to fill the top five positions. Barclays has overtaken Deutsche Bank in sixth spot (see: “Deutsche in risky capital stand-off” and “Deutsche woes reopen AT1 wounds”).

Japanese banks have made progress outside the top 10 positions this year.

Mizuho Financial took US$991m in fees in the first nine months, to give it a 1.7% market share, up from 1.3% at the same stage last year. That lifted it to 12th from 16th position.

Sumitomo Mitsui moved up to 16th from 19th. Mizuho and Sumitomo rank second and third in Asia-Pacific fees so far this year, behind leading bank in the region, Morgan Stanley.

JP Morgan topped the rankings in the Americas with a 9.9% share of the market, ahead of Goldman, which had an 8.4% share. JP Morgan also led in EMEA, where it had 5.8% of the market.

Global Investment Banking Fees - September 2016
Global Investment Banking Fees - September 2016
Managing bank or groupNo ofTotal US$(m)Share (%)
​ 1JP Morgan3,0274,055.207.1
2Goldman Sachs1,7283,609.106.3
3BofA Merrill Lynch3,1533,258.205.7
4Morgan Stanley2,3883,091.105.4
7Deutsche Bank1,8401,925.703.4
8Credit Suisse1,2951,874.103.3
9Wells Fargo & Co2,4341,415.202.5
10RBC CM1,6031,203.302.1
12Mizuho Financial2,223990.51.7
14BNP Paribas1,391949.61.7
16Sumitomo Mitsui1,756675.31.2
17Jefferies LLC632633.61.1
18Mitsubishi UFJ1,669620.41.1
20Rothschild & Co221587.71
Americas Investment Banking - September 2016
Americas Investment Banking - September 2016
Managing bank or groupNo ofTotal US$(m)Share (%)
1JP Morgan2,1412,998.009.9
2Goldman Sachs1,0152,520.908.4
3BofA Merrill Lynch2,4142,460.408.2
5Morgan Stanley1,2731,777.705.9
7Credit Suisse7501,322.404.4
8Wells Fargo & Co2,2921,320.104.4
9Deutsche Bank9991,145.803.8
10RBC CM1,3751,078.803.6
Asia-Pacific & Japan Investment Banking - September 2016
Asia-Pacific & Japan Investment Banking - September 2016
Managing bank or groupNo ofTotal US$(m)Share (%)
1Morgan Stanley811665.25
2Mizuho Financial1,499584.84.4
3Sumitomo Mitsui1,293410.23.1
5Goldman Sachs3314033
9Bank of China1,461314.92.4
10China Securities1,0862742.1
EMEA Investment Banking - September 2016
EMEA Investment Banking - September 2016
Managing bank or groupNo ofTotal US$(m)Share (%)
1JP Morgan6528035.8
2Goldman Sachs390685.14.9
4Morgan Stanley309648.24.7
5BNP Paribas729598.34.3
6Deutsche Bank580576.14.2
8BofA Merrill Lynch425547.63.9
10Rothschild & Co151387.42.8
Global Bonds - September 2016
Global Bonds - September 2016
Managing bank or groupNo ofTotal US$(m)Share (%)
1JP Morgan1,6891,309.807.1
2BofA Merrill Lynch1,7661,232.206.7
4Goldman Sachs1,057884.54.8
6Morgan Stanley1,754865.64.7
7Deutsche Bank1,213802.84.3
8Wells Fargo & Co1,442703.73.8
9Credit Suisse759606.23.3
Total​22,54318,473.0 ​
Global Equities - September 2016
Global Equities - September 2016
Managing bank or groupNo ofTotal US$(m)Share (%)
1JP Morgan254773.97.3
2Morgan Stanley242651.16.2
3Goldman Sachs2035695.4
4BofA Merrill Lynch1955465.2
6Credit Suisse1683813.6
7Deutsche Bank143316.93
9RBC CM188236.12.2
Global Loans - September 2016
Global Loans - September 2016
Managing bank or groupNo ofTotal US$(m)Share (%)
1BofA Merrill Lynch1,055731.97.1
2JP Morgan8925905.8
5Wells Fargo & Co836403.53.9
6Deutsche Bank384397.63.9
7Mitsubishi UFJ1,059365.23.6
8Mizuho Financial785313.23.1
9Goldman Sachs273303.33
10Sumitomo Mitsui753286.42.8