JPMorgan, Goldman top fee tables again as Wall Street faces squeeze

JPMorgan and Goldman Sachs held on to their one-two rankings in investment banking revenue in 2022, while Bank of America pushed its way into the third slot in a year of shrinking business, according to Dealogic.

All told, the top 10 investment banks on Wall Street booked $56.4bn in revenue in 2022 as of 14 September, down nearly 39% from $92bn in 2021 as of the same date, and about 8% lower than 2020’s tally of $61.3bn.

The figures reveal the shrinking investment banking revenue that may force Wall Street firms to impose layoffs this year as the business lags from a lack of initial public offerings and other capital raising activities.

With the pie now smaller than last year, market share by the four major components of investment banking has changed. Mergers and acquisitions, which have remained fairly healthy this year, now comprises 45% of all investment banking revenue, up from about 32% in 2021.

READ Goldman to cut poor performers in annual cull

Equity capital markets now comprises about 15% of investment banking revenue, down from nearly 28% in 2021. Debt capital markets revenue has remained stable with 25% revenue share in both 2022 and 2021, while syndicated lending also remained steady at about 15%.

JPMorgan has drawn in $4.55bn of investment banking fees year-to-date as of 14 September, down from $8.52bn in 2021 and $5.86bn in 2020 as of the same date.

Goldman Sachs has tallied $4.2bn in year-to-date investment banking revenue, down from $8.1bn in 2021 and $4.9bn in 2020.

BofA Securities, the investment banking arm of Bank of America, moved into number three from the fourth slot with year-to-date investment banking revenue of $3.49bn, down from $5.7bn in 2021 and $4.26bn in 2020.

Morgan Stanley ranks fourth with investment banking revenue of just under $3bn in 2022, down from $5.3bn in 2021 and $3.95bn in 2020, all as of 14 September.

Citigroup remains in fifth place overall in 2022 with $2.36bn in investment banking revenue, down from $4.59bn in 2021 and $3.3bn in 2020.

This article was published by Dow Jones Newswires, a fellow Dow Jones Group service.

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