REFILE-Investment banking fees rise 13 pct as deal volumes surge

Thu Oct 2, 2014 9:24am EDT
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* Fees reach $68.8 billion by end of Q3

* Best start to a year since 2007

* JPMorgan is top-ranked bank for fees

LONDON, Oct 2 (Reuters) - Increased deal activity in the first nine months of the year has netted investment banking advisers $68.8 billion in fees, 13 percent more than they earned a year earlier, new data showed on Thursday.

It was the best start to the year for investment banking fees since 2007, according to data for the year to Oct. 1, compiled by Thomson Reuters and Freeman Consulting.

Greater levels of confidence and the availability of cheap financing have encouraged companies to pull the trigger on mergers and acquisitions, lifting volumes by more 60 percent to $2.7 trillion, while strong investor demand has driven up equity capital market (ECM) deals by a quarter to $678.1 billion, separate data showed this week.

The end of the third quarter featured Chinese e-commerce company Alibaba's $25 billion initial public offering (IPO), for which bankers earned fees of $300 million.

The deal, the world's largest ever listing, helped to lift fees in the Asia Pacific region by 23 percent in the first nine months. Elsewhere, fees rose by almost a third in Europe, while in the Americas fees were 7 percent higher. Only Japan recorded a decline, with fees down 11 percent.   Continued...