APAC investment banking fees drop to lowest in 5 years

Its total ECM underwriting fees were its lowest since 2013.

Investment banking fees generated in Asia Pacific (excluding Japan) fell to its lowest level in five years in 2024, according to data from the London Stock Exchange Group (LSEG).

The region generated $20.3b in investment banking fees throughout the year, down 11% compared to 2023 and its lowest annual period since 2019.

APAC ex. Japan accounted for 17% of total fees earned globally in 2024, LSEG said. The Americans and Europe accounted for 54% and 23% of all fees, respectively.

APAC ex. Japan’s equity capital markets (ECM) underwriting fees, syndicated lending fees, and advisory fees from completed mergers & acquisitions (M&A) both declined.

ECM underwriting fees dropped 36% year-on-year (YoY) to $3.7b, its lowest period since 2013.

Estimated advisory fees earned from completed M&A transactions also fell by 24% YoY to $2.2b.

Syndicated lending fees are down 13% YoY to $2.3b.

In contrast, debt capital market (DCM) fees saw a 5% increase compared to a year earlier, to $12.1b, LSEG found.

Amongst financial institutions, CITIC took the top spot for overall investment banking fees in APAC excluding Japan, with a total of $1.1b.

CITIC accounted for 5.5% of the wallet share of the total APAC investment banking fee pool.

In the ECM underwriting rankings, Citi took the lead in APAC, clinching 7.3% of the market share and $13.97b in proceeds.

For APAC-issued bonds underwriting, CITIC once again took the lead, accounting for 6.3% of the market share with $278.7b in related proceeds.