American banking giant, JP Morgan raked $6.92 billion in fees out of the total $27.51 billion to lead four other top investment banks that amassed a significant share globally in 2022.
Data from Finbold shows the fees came from mergers and acquisitions, loans, bonds, and equity.
The global investment banking scene remained competitive across 2022, with different players moving to dominate the market by offering services and products such as loans and deals advisory.
Finbold shows a significant share of JP Morgan’s fees came from mergers and acquisitions (M&A) activity which accounted for 37 percent, followed by loans at 31 percent, while bonds represented 22 percent of the fees. Equity accounted for 10 percent of the bank’s fees in 2022.
Goldman Sachs ranked second in fees at $6.5 billion. Bank of America Securities emerged third at $5.52 billion, while Morgan Stanley ranked fourth after collecting $4.61 billion in fees. Citi was fifth at $3.96 billion.
Notably, all the top five banks by fees emanated from the United States, with United Kingdom’s Barclays ranking sixth at $2.83 billion. Other banks accounting for significant fees include Credit Suisse ($2.23 billion), Wells Fargo ($2.03 billion), CITIC ($1.9 billion), and RBC Capital Markets ($1.73 billion).
Finbold report highlighted strong reputation and expertise as the underlying factors behind global investment banks’ varied and significant fees.
“Despite the highlighted banks having varied fees, they have built a strong reputation and recognition as experts in the industry. As a result, they can charge premium fees for their services. The significant fees generated have emerged in an environment of high volatility and the disruptive increase in interest rates. At the same time, the banks’ expenses have likely surged with the soaring inflation, slowdown in deal-making, geopolitical tensions, and possible job cuts”, noted Finbold report
Moving into 2023, the banks will be monitoring the economic outlook with a focus on factors such as inflation and geopolitical tensions worldwide.
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