Corporate and Investment banking
Banking on buoyancy
Business growth is driving a demand for capital
If the month of October 2016 were a measure of corporate activity, the corporate and investment banking sector could easily be described as buoyant. This assertion is admittedly based on two rather substantial deals that may skew the true nature of the merger and acquisition (M&A) scene. This two-deal exuberance — AB InBev’s monumental takeover of SABMiller and Blue Label Telecoms’ R5.5bn deal to buy 45% of Cell C — does, however, point to a level of intensity bubbling under the surface of a generally sedate year. For bankers this should be pleasing news, given a lacklustre consumer market that has come under increasing pressure from slow growth and higher living costs. With the prospect of close to zero growth this year and the threat of a sovereign credit-rating downgrade in November, banks will be happy for any good news. However, the shimmer of improved performance in the corporate banking business may prove to be elusive, if the EY financial services index for the third quarter...
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