Australian investment banking fees have fallen 50 per cent in the first half of this year compared to the same period in 2022 amid a period of uncertainty about the economy.
Figures from a preliminary half year report provided by Refinitiv show activities from Australian investment banks generated $US953.1m in fees down 50 per cent compared to the previous corresponding period, with equity capital markets (ECM) underwriting fees accounting for 20 per cent, or $US192.3m of the Australian investment banking fee pool, according to Refinitiv.
This was a 16 per cent decline in ECM activity compared to the first half last year.
Completed mergers and acquisitions advisory fees amounted to $US267.1m, down 62 per cent from a year ago.
Syndicated lending fees reached $US187.5 million, down 65 per cent from the first half of 2022.
The preliminary data supplied by Refinitiv shows UBS leads Australia’s investment banking fee league tables with $US89.9 million in related fees with a 9.4 per cent wallet share during the first half of 2023.
Meanwhile, announced mergers and acquisitions activity related to Australian firms amounted to $US60.5bn for the first half of this year, a 24 per cent decline in value compared to the first half of 2022, making it the lowest first half period by value since 2020 when there was $US25.1bn.
Target Australian mergers and acquisitions reached $US44.7bn, up 14 per cent compared to the first half of last year.
Domestic mergers and acquisitions fell 60 per cent from a year ago and reached $US9.4bn.
Inbound mergers and acquisitions reached a record high $US35.4bn, a 120 per cent increase in value from the first half of 2022.
Outbound mergers and acquisitions fell 71 per cent compared to the first half of last year, with $US10.5bn worth of announced deals.
From a sector perspective, materials accounted for 53.5 per cent of market share of the deal making activity involving Australia and totalled $US32.4bn, more than a six-fold increase compared to the first half of last year.
Consumer Products and Services had 9.9 per cent of the market share with $US6.0bn, followed by Healthcare with 9.1 per cent and High Technology with 6.8 per cent.
With respect to the announced mergers and acquisitions league tables, JPMorgan leads with $US26.6bn in related deal value capturing 44 per cent market share, based on preliminary data.
With respect to ECM, the Australian market saw $US7.2bn raised in the first six months of the year, a 13 per cent increase in proceeds compared to the first half of 2022.
Australian-domiciled companies raised $US7.0 billion through follow-on offerings, up 18 per cent compared to the first half of last year.
At least five Australian-issued initial public offerings priced so far this year raised $US26.4 million, down 95 per cent in proceeds from a year ago.
Convertible offerings raised $US212.3 million from five primary issuances.
Most of the issues came from the Australian materials sector, accounting for 39.1 per cent and amounting in $US2.8bn in proceeds, down 12 per cent compared to last year.
Based on preliminary data, Barrenjoey shareholder Barclays leads the Australia ECM underwriting with $US1.09 billion in related proceeds and 15.1 per cent market share during the first half of 2023.
With respect to debt capital markets (DCM) primary bond offerings from Australia-domiciled issuers raised $US84.5bn during the first half of 2023, down 13 per cent in proceeds compared to the first half of last year.
Australian companies from the Financials sector captured 61 per cent market share and raised $US51.4 billion, down 25 per cent compared to the first half of 2022.
Based on preliminary data, National Australia Bank takes the lead in the Australian bonds underwriting league table with $US10.7 billion in related proceeds, capturing 12.7 per cent market share.
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