Goldman buoyed by 140% fee forecast
Goldman Sachs has recorded the largest quarter-on-quarter increase in investment banking revenues among its global rivals this year, according to new research, with fee income more than doubling in the three months to the end of June compared to the first quarter.
Revenues from debt and equity underwriting, and mergers and acquisitions at Goldman Sachs hit $1.31bn (€931m) in the second quarter, a 143% increase on the first three months of the year, while the world’s top bank’s on average recorded a 64% increase over the period, according to Morgan Stanley analysis of Dealogic data.
Equity capital market was largely responsible for the increase in Goldman Sachs’s performance, with revenues rising 1,338% in the second quarter to $850m, while the bank’s M&A income fell 15%.
Goldman is due to release its second quarter results on July 14. The bank declined to comment.
The world’s largest fee earner remains JP Morgan, which made $1.7bn over the last three months, a 111% increase on the $804m it made in the first quarter, while Bank of America Merrill Lynch completes the top three with a fee income for the period of $1.02bn, up 65%.
Morgan Stanley analysts wrote: “Whilst these are just the ‘IBD’ part of the business, we think they are directionally illustrative of what else we see, with a flourishing range of businesses – such as credit, equities and commodities.”
Europe’s best performing bank in terms of the percentage increase in its investment banking fee income was Calyon, which recorded a 66% increase taking its revenues to $192m, while Credit Suisse made the most money of any bank in the region, generating fees worth $791m.
Credit Suisse is part of a group of banks, including JP Morgan and Deutsche Bank, that Morgan Stanley has called ‘flow monsters’, which have won a disproportionate share of investment banking fees so far this year.
--write to hwilson@efinancialnews.com
del.icio.us
Digg
Newsvine
reddit
StumbleUpon