News Column

Investment banking fee earnings up 20 per cent

January 19, 2014

Cleofe Maceda Senior Reporter

Dubai : Fees earned for investment banking activities in the Middle East , including debt capital markets and merger and acquisition (M&A) deals, rose by a significant 20 per cent last year, Thomson Reuters reported yesterday. Investment banking fees during 2013 reached $722.2 million (Dh2.6 billion), the highest annual total in the region since 2010. Data compiled by the financial information provider showed that the increase in proceeds from investment banking services in the region last year was spurred by strong gains in fees from syndicated lending, debt capital markets and M&A. Syndicated lending fees jumped 38 per cent to $303 million from 2012, accounting for nearly half (42 per cent) of the overall fee pool and the highest share since 2004. Fees from completed M&A transactions reached $212.8 million , up 22 per cent from the previous year, and accounting for about a third (29 per cent) of the total proceeds. HSBC earned the top spot in the overall league table, raking in a total of $61.6 million in investment banking fees during 2013. HSBC was the top-ranked bank in terms of M&A fees, as well as debt capital markets and loans underwriting fees, while National Bank of Abu Dhabi (NBAD) took the first place in the region's equity capital markets fee ranking with a 10.3 per cent cut. Georges Elhedery, HSBC head of markets and capital financing, Middle East and North Africa (Mena), attributed the positive performance to the bank's strong talent pool. "We invest in the very best people in growth markets. This enables us to support our clients achieve their strategic ambitions and connect them to international growth opportunities," Elhedery told Gulf News . The biggest jump was recorded in debt capital markets fees, which reached $144.1 million , up 44 per cent from $100 million . The biggest plunge went to the equity capital markets underwriting fees, which totalled $62.4 million , down 43 per cent from 2012 and the lowest annual total since 2003.

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Source: Gulf News (United Arab Emirates)

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