Fading mergers and acquisitions activity and fewer syndicated loans are shrinking the cash flow to Australia’s investment banks.
Revenue for investment banking in Australia dropped 23% to $678 million in the six months to June, according to Dealogic.
This was lowest first half revenue result since 2010 when the banks pulled in $591 million.
Syndicated loans led the decline with a 60% fall to $46 million.
Mergers and acquisitions revenue fell 8% to $247 million.
The size of deals was down 33% Australia to $32.8 billion, the lowest since 2009. And the number of deals at 608 was the lowest since 2005.
The shrinking deals is part of a global trend. Global merger and acquisition activity for the first half fell 18% to $1.71 trillion, according to Dealogic.
Macquarie Bank grabbed the biggest share of revenue in the six months with 17.6%. UBS and Credit Suisse followed, as this chart shows: