Investment Banking - Statistics & Facts
Statistics and facts about investment banking
An investment bank is a type of financial institution that is somewhat different to those found in the commercial banking sector. Investment banks provide services that assist governments, corporations and individuals in raising capital by acting as an underwriter or agent by issuing securities.
An investment bank may also provide equity to help companies with expansionary goals. The equity invested may be what the organization requires to make an initial public offering and thus gain access to capital markets. The investment bank would aid the newly floated company by issuing bonds to raise debt capital and then by finding buyers for those bonds. It would also take care of the bureaucratic side of the flotation and support the organization in an advisory capacity allowing the company to raise capital for expansion. Mergers and acquisitions-or the facilitation of company mergers or buyouts - also falls under the remit of an investment bank and are often very lucrative deals indeed. In return for the services it provides, an investment bank takes a fee. The fee structures generally include success fees, breakup fees, minimum transaction fees and expense reimbursements. The fee system is an important source of income for investment banks.
Investment banks are heavily reliant on the success of their operations, which, in free market economics, is never guaranteed. In the wake of the 2008 financial crisis, tighter regulation of investment banking practices has, to some extent, reigned in the frivolous, high-risk investment culture that had become commonplace on Wall Street, earning the investment banking sector its alternative name ‘casino banking’. Despite this fact, investment banker wages are still among the highest in the financial services sector.
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|Global market share of the revenue of the leading investment bank||8%||Details →|
|Market capitalization of HSBC||193,794m||Details →|
|Global investment banking fee||$76.3bn||Details →|
|Brand value of the largest investment bank||$10,821m||Details →|
|Top leading investment bank in the world by the value of managed M&A deals||Goldman Sachs||Details →|
|Number of M&A deals made by the leading investment bank worldwide H1 2014||182||Details →|
|The leading U.S. investment bank by value of M&A deals||Goldman Sachs||Details →|
- Leading financial adivsors to global M&A 2014, by deal valueLeading financial adivsors to global M&A 2014, by deal value
Leading financial advisors to global M&A in 2014, by deal value (in billion U.S. dollars)
- Revenue of global investment banks, by product group 2014Revenue of global investment banks, by product group 2014
Revenue of world's largest investment banks, by product group in 2014 (in million U.S. dollars)
- Leading global inestment banks 2013, by feeLeading global inestment banks 2013, by fee
Leading global investment banks up to Q3 2013, by fee (in million U.S. dollars)
- Global financial sponsor fees as a share of total market 2013Global financial sponsor fees as a share of total market 2013
- Morgan Stanley investment banking revenue 2009-2013Morgan Stanley investment banking revenue 2009-2013
- Global profit before tax for investment banking at Barclays from 2011 to 2013Global profit before tax for investment banking at Barclays from 2011 to 2013