Investment bank 2010 income down 23% YoY: Study
Income for top investment banks fell by almost a quarter last year to USD 167 billion from a record performance in 2009, according to an industry report.
March 21, 2011 / 14:48 IST
Income for top investment banks fell by almost a quarter last year to USD 167 billion from a record performance in 2009, according to an industry report.
The drop came as staffing levels at the top 10 investment banks recovered to pre-crisis levels of about 66,000, following a 10% drop during the financial crisis, according to the study released on Monday.Coalition, an independent research firm for the investment banking industry, said income for the top 10 investment banks fell 23% from a record USD 219 billion in 2009. Income had slumped to USD 124 billion in 2008 from USD184 billion in 2007.The London-based research firm said bankers in fixed income generated more income than their peers, bringing in an average of USD 3.7 million per person last year, almost double the average USD 1.8 million generated by bankers in equities and origination.Fixed income has consolidated its position as the dominant driver of revenues in the last four years, Coalition said, despite greater market volatility and the need for banks to hold more capital for the business.Fixed income contributed USD 94 billion of revenues last year, or 56% of the total, down from the record USD 139 billion in 2009 but up from USD 83 billion in 2007, when it accounted for 45% of overall revenues.Equities brought in USD 37 billion last year, down from USD 55 billion in 2007, while origination and advisory revenues were USD 36 billion in 2010, down from USD 47 billion three years earlier.The report estimated that the top 1,000 clients accounted for more than 65% of the banks' revenue pools. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
