Investment Banking Industry Profile

Report Page Length: 10-12
Last Quarterly Update: 11/21/2011
SIC Codes: 6211
NAICS Codes: 52311
Chapters Include:
Industry Overview Trends & Challenges Industry Forecast
Quarterly Industry Update Call Prep Questions Website & Media Links
Business Challenges Financial Information Glossary & Acronyms
View Full Sample Add To Cart

Excerpt from Investment Banking Industry Profile

The US investment banking industry includes about 3,000 companies with combined annual revenue of about $125 billion. Major companies include Bank of America's Merrill Lynch, Morgan Stanley, Goldman Sachs, Lazard, and Jefferies. Investment banking is highly concentrated: the largest 50 firms generate more than 90 percent of industry revenue.

Major investment banks based outside the US include Barclays Capital (UK), CITIC Securities (China), Nomura (Japan), and UBS Investment Bank (Switzerland). London is Europe's dominant financial hub, while Hong Kong is China's primary financial center. Investment banks are increasingly engaging in deals in emerging markets: nine of 2009's 10 biggest IPOs came from emerging markets, including six from China.

COMPETITIVE LANDSCAPE

Demand is driven by economic activity that results in company mergers, acquisitions, or public financing. The profitability of an investment bank depends on its ability to accurately assess both the value of a business transaction and the readiness of the market to buy the attendant debt or equity. Big firms have an advantage because large customer transactions require firms with substantial financial resources. Small investment banks can compete by participating in syndications and operating in regional markets or specialized industries. Although labor-intensive, the industry produces very high value: average annual revenue per employee at large firms is over $1 million.

The global financial crisis of 2008-2009 dramatically altered the landscape of the investment banking industry. The demise of firms such as Lehman Brothers ...

 
View Full Sample Add To Cart Return to the Industry Profile Menu

Related Profiles

Here are a few profiles related to Investment Banking that you also might be interested in viewing:

Would you or your company benefit from having unlimited access to First Research's industry intelligence tools?

Learn More About Subscription Options