MENA investment banking fees hit three-year high at $218mln in Q1 2021: Refinitiv

Investment banking fees globally reached $39.4 billion during the first quarter of 2021

Image used for illustrative purpose.

Image used for illustrative purpose.

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Investment banking fees in the Middle East and North Africa (MENA) reached an estimated $218 million during the first quarter of 2021, up 5 percent from last year and a three-year high, according to global data provider Refinitiv. 

Advisory fees earned from completed M&A transactions generated $20.4 million, down 74 percent representing the second-lowest total in the last ten years. Equity capital markets underwriting fees fell by more than half compared to 2020, to $7 million, the lowest total since 2011.

“Syndicated lending fees increased 76 percent to $109.2 million, a three-year high in fees and the third highest total since our records began in 2000,” Refinitiv said in its report.

Bond underwriting fees also experienced an increase with $81.3 million in fees, a 64 percent increase from the same period in 2020.

Governments/agencies and financials accounted for 87 percent of total fees this quarter in MENA with 59 percent and 28 percent fees recorded, respectively.

HSBC Holdings PLC earned the most investment banking fees in the region during the first quarter of 2021, a total of $22.7 million or a 10.4 percent share of the total fee pool, Refinitiv said in its report.

Global investment banking fees

Investment banking fees globally reached $39.4 billion during the first quarter of 2021, posting a 45 percent increase compared to the first quarter of 2020 and the strongest opening period for global IB fees since records began in 2000.

The first quarter of 2021 also marks the strongest overall quarter for investment banking fees on record, besting the second quarter of 2020 which saw $35.7 billion in fees.

According to Refinitiv, the Americas contributed 59 percent of all fees generated globally with $23.2 billion, a 70 percent uptick compared to 2020 levels and the highest percentage since 2000.

Imputed fees in the EMEA region increased 27 percent to $8.1 billion during first quarter of 2021, driven by year-over-year gains in the UK and Ireland. powered by a 20 percent increase in North Asia. Total IB fees in Asia-Pacific and Japan hit $8.1 billion with a 15 percent uptick compared to 2020.

(reporting by Seban Scaria; editing by Daniel Luiz)


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