Investment Banking Revenues in 2007

Investment-banking revenue generated in North America, the world’s biggest capital market, rose 8% to $39.8 billion last year from $36.7 billion a year earlier, while European revenue rose just 5% to $30.6 billion, according to Dealogic.


In Europe the U.K. remains the region’s biggest fee pool, though investment-banking revenue fell 2% to $6.6 billion.
Italy experienced the fastest growth, jumping by a fifth to $2.2 billion.
Revenue in France rose 5% and German fees increased 4%.
The biggest fall was in Spain, where investment banking revenue dropped 8% from 2006.

U.S. investment-banking revenue accounted for 46% of the $86.4 billion global fee pool, with Europe contributing 35%.

The Middle East and Africa recorded a 64% rise in investment banking fees to $2.2 billion, growth surpassed only by Latin America, where fees surged 88% to $2.4 billion.

Investment bankers have predicted faster rates of revenue growth in their operations in Europe, Middle East and Africa and have made those regions a priority for 2008.

Wall Street firms have given more autonomy to their European operations and some have shifted the management of global operations to London.

Citigroup’s global fixed-income division is managed from London, as is the world-wide mergers-and-acquisitions operation of Morgan Stanley, which topped the European deal rankings.