Transaction fees at the leading investment banks plummeted during the first half of the year. Credit Suisse may have been hit particularly hard.
Transaction fees worldwide fell 38 percent overall to $39.4 billion, while revenue in Europe fell by the same percentage to $9.1 billion, Financial News (behind paywall) reported Wednesday, citing data from data provider Dealogic.
Credit Suisse suffered the sharpest decline among leading investment banks, down about 56 percent compared with the same period last year, according to the data. Switzerland's second-largest bank has had to deal with several crises and an exodus of dealmakers over the past 12 months and seeing its share of fee income falling from 3.7 percent to 2.8 percent during that time.
Boom Busted
Even with fees declining by around 47 percent US bank J.P. Morgan, still leads the overall leader in fee generations during the first six months of the year, according to the data. At number two Goldman Sachs, fees declined by 46 percent.
Last year saw a number of banks break records in fee generation and new money inflows, with investment banks collecting $130 billion in fees in 2021, but recession fears and rising interest rates have broken the boom. Mergers and acquisitions are down from last year's highs, and financing large deals through the leveraged loan market has become much more difficult.
The flow of transactions has been slowed in recent weeks by rising interest rates, the prospect of recession and inflationary pressures, it said.
