Australia investment banking revenue fell for the second year in a row, by 13% to $1.6 billion in 2016, according to final numbers by analysts Dealogic.
Equity capital markets led the decline with $394 million in fees, a 40% drop from 2015. The slide reflected weaker value at $20.7 billion via 792 deals, down from $43.5 billion in 2015 via 628 deals.
IPO volume was $4.3 billion via 61 deals, down 26% from $5.8 billion in 2015. Reliance Worldwide Corp completed a $702 million listing in April, the largest Australian IPO of the year.
Fees from mergers and acquisitions increased by 16% to $541 million.
Australia’s M&A volume increased for the second consecutive year, reaching $100.3 billion, up 7% from 2015 and the highest total since 2011 ($134.1 billion).
Macquarie Group headed the investment bank rankings again in 2016 with $195 million in revenue, a 12.3% share of the pie, as this chart shows:
UBS came in second with $143 million or about 9% of fees.
Macquarie also got the lion’s share of mergers and acquisition fees at $135 million or 25% of the market.
Again, UBS was second, this time with $59 million and 10.8%.
Australia debt capital markets volume reached $171.6 billion in 2016, up 8%.
Activity of 479 deals was the highest annual total since 2012 (528 deals). Australia domestic volume dropped 5%.
The Commonwealth Bank issued a $5.8 billiobn bond, the largest Australia domestic deal of the year and fourth largest on record.