Aussie investment banking activity down 27.9%

By Adrian Flores

— 1 minute read

23 September 2019

New data reveals Australian investment banking activities generated US$1.4 billion in the first nine months of the year, a decrease of 27.9 per cent from the same period last year, as a downturn was felt across all asset classes.

Completed merger and acquisitions (M&A) advisory fees slowed down by 21.6 per cent year-on-year (YoY) to US$358.8 million, according to Refinitiv data.

Overall Australian-involvement announced M&A activity reached US$83.8 billion so far this year, a 21.1 per cent YoY decrease, while domestic M&A slowed down by 37.3 per cent, totalling US$18.8 billion in the first nine months of the year, its lowest level since 2013.

Equity capital markets (ECM) underwriting fees totalled US$369.4 million, a 24.1 per cent decline after a strong first nine months last year, while debt capital markets (DCM) underwriting fees also fell 21.0 per cent YoY to a three-year low of US$345.9 million.

Australian equity capital markets (ECM) raised US$13.1 billion so far this year, a 38.8 per cent decrease in total proceeds from the comparable period in 2018. Initial public offerings (IPO) by Australian companies raised US$416.1 million, a 90.1 per cent decline from a year ago, and the lowest first nine months period for Australian IPOs since 2012 (US$310.5 million).

On the DCM side, primary bond offerings from Australia-domiciled issuers fell 25.4 per cent YoY, raising US$68.2 billion so far this year, making it the lowest first nine months period in more than a decade.

Syndicated lending fees also experienced a 42.8 per cent decrease to US$300.6 million after a record high in the same period in 2018.

UBS took the top spot in Australia’s investment banking fee league tables with $170.1 million in related fees and a 12.4 per cent wallet share.

Macquarie Group followed in second place, taking a 6.4 per cent market share while JPMorgan placed third with 5.7 per cent market share.