Fee income of investment bankers to reach record US$1.3 billion in 2023
MUMBAI: Investment bankers raved about the bank as its fee income touched a new record of US$1.3 billion in 2023, up 28 per cent from last year. At US$1.3 billion in estimated fees through 2023, investment bankers collected 28 percent more than last year, and the most since records began in 2000, according to data collected by LSEG Deals Intelligence, formerly Refinitiv. is the most.
Investment bankers’ fee income increased due to higher equity and debt issuance volumes, which offset a sharp decline in deal activity.
According to the agency, State Bank of India topped the investment banking fee chart with collections of US$102.7 million, which is 7.7 per cent of the country’s total investment banking fee pool.
The fee income chart was led by M&A (mergers and acquisitions), which contributed US$416.1 million, down 7 percent year-on-year. The agency said Deal Street saw a massive 51 percent decline in value compared to 2022.
It said the second largest fee source was fees from equity capital markets (ECM) underwriting, which reached US$343.5 million, up 68 percent compared to 2023.
ECM activities raised US$31.2 billion in 2023, up 59.6 percent from 2022, making the latest collection figure the highest since 2021.
The number of ECM offerings also saw a 48.9 percent increase year-over-year. ECM mart was led by follow-on offerings, which accounted for 78 percent of total ECM revenue, generating US$24.4 billion, up 105.1 percent year-on-year, while volume increased 39.8 percent.
IIFL Holdings led the rankings for ECM underwriting fees with US$3.7 billion in total income, or 12 percent of the total market, the agency said, but did not say how much IIFL collected in underwriting fees.
This year saw a record with over 240 initial public offerings and offers for sale, with the main board alone seeing 59 issues worth about Rs 54,000 crore, although in value terms this was down 17 per cent from last year.
On the other hand, debt capital markets (DCM) underwriting fees totaled US$247.3 million, up 23 percent from a year earlier.
Syndicated loan fees increased 70 percent from the comparable period year and generated US$325 million.
M&A this year fell to a three-year low of US$83.8 billion, down 50.6 per cent year-on-year, of which India-targeted M&A reached US$76.4 billion, up 51.5 per cent from a year earlier. is low and is the lowest annual period by value. From 2020.
Domestic M&A totaled US$51.8 billion, down 56.4 per cent.
Inbound M&A fell 36.4 percent to US$24.6 billion, the lowest since 2015, and outbound M&A fell 40.4 percent to US$5.9 billion, with the United States the most targeted with a 22.6 percent market share. Is the country.
Primary bond offerings are set to raise US$85.1 billion in 2023, a 25.5 percent increase in proceeds, the most since 2019.
Financial sector issuers captured 76.7 percent market share and raised US$65.3 billion, an increase of 41.3 percent.
The agency said ICICI Bank topped the rankings for bond underwriting worth US$12.9 billion with 15.2 per cent market share.
