Standard Bank and Citi have highest earnings from investment banking fees

Standard Bank and Citibank have been the biggest winners in terms of investment-banking fees earned in 2019 for transactions in Sub-Saharan Africa, according to the latest figures published by Refinitiv.

The financial markets data and infrastructure firm recently published its report into investment-banking fees for the first half of 2019, which showed that of the $227m earned by investment banks, Standard Bank topped the tables with a 14% ($32m) market share.

In a separate category, which measures fees earned from any African businesses involved in merger and acquisition activity (usually as subsidiaries of larger multinational companies undertaking this form of corporate activity), Citibank achieved the largest market share with 30% of the fees. 

The value of these transactions reached $20.9bn, up 42% from the same period in 2018 and the highest first-half total since 2010. 

However, the overall investment banking fees paint a gloomy picture of stagnant activity in the underlying economies, with fees earned being 19% lower than the in same period in 2018, and the lowest first-half total in three years.

“This is testament to our earlier observations that the region would most likely experience subdued investment activities in the first half of the year due to countries and companies, globally, having become more inward looking, with companies rather choosing to take a risk-off approach and holding onto their capital, for now,” Refinitiv investment and advisory market development manager for the Middle East and Africa Franita Neuville said.

thompsonw@businesslive.co.za