Asia-Pac i-banking hit by subprime

YTD 2006 YTD 2007

%Change
(YoY)

Value
($mil)DealsValue
($mil)Deals UBS465.10189.00605.40253.0030.20 Citi533.50659.00507.30600.00-4.90 Goldman Sachs & Co501.20199.00408.60199.00-18.50 Morgan Stanley257.40189.00394.30183.0053.20 JP Morgan206.10174.00386.10205.0087.40 Nomura451.00474.00356.40461.00-21.00 Merrill Lynch240.40184.00278.10207.0015.70 Credit Suisse189.80131.00275.60158.0045.30 Mizuho Financial Group359.201073.00251.40985.00-30.00 Deutsche Bank AG214.50199.00250.20225.0016.70 Industry Total8669.1012058.0010709.8012988.0023.50 Source Thomson Financial  The data compiled by Thomson Financial show that investment banking fees in August was the lowest in the current calendar year, and it is likely that September may be worse. Investment banking fees in June 2007 at $738 million remained the highest since October 2006.  Year-to-date figures show investment banking fees surging 23.5 per cent from the same period last year, earning fees of $10.7 billion compared with $8.7 billion in the same period last year. Fees from M&A deals comprised 52 per cent, while ECM transactions fees shared 34.7 per cent.  Fees from M&A deals increased 41.1 per cent from the same period last year, while equity deals went up by 15.5 per cent. The deals in debt market declined by 9.7 per cent, while loan deals marginally went up by 2.8 per cent over the same period last year.  Indian investment banking fees registered the biggest leap, increasing 67 per cent from the same period last year. India also captured 9.4 per cent share in fees in the current year compared with 6.9 per cent in the same period last year. China remains at top with a share of 18.3 per cent, up from 13.7 per cent in 2006.  North Asia, which includes China, is still the most active sub-region in terms of fees earned, capturing 35.5 per cent of total regional share. However it is South Asia, which includes India, which increased its deal making fee earnings the most with an increase of 71.8 per cent.  In whole of Asia Pacific/Japan, only Japan posted a 26.6 per cent decline in fees over the same period last year. China raked in a total of almost $2 billion, up 64.9 per cent.  UBS is still the top fee earner list thus far this year with almost 53.5 per cent of fees earned from equity transactions. UBS topped both fee league tables for M&A and equity transactions.  Citigroup is closely trailing behind, earning $507 million with 48.4 per cent of its fees earned from equity deals. The top five fee earners captured 30 per cent of total investment banking fee pool in the region.