Asia in­vest­ment bank­ing rev­enue hit $9.16 bil­lion

The Pak Banker - - Company& -

HONG KONG: This year is of­fi­cially the best one ever for in­vest­ment banks in the Asian-Pa­cific mar­ket, in­dus­try data showed, a sign that their push in the fast-grow­ing re­gion is bear­ing fruit.

For the year to date, core in­vest­ment-bank­ing rev­enue for the Asia-Pa­cific re­gion, ex­clud­ing Ja­pan, hit $9.16 bil­lion on Wed­nes­day, ac­cord­ing to in­dus­try data providers Dealogic, over­tak­ing 2007, the next-high­est year on record at $9.01 bil­lion.

Banks still gen­er­ate less rev­enues in the Asia-Pa­cific re­gion than in the U.S. and Europe, but Asia's con­tri­bu­tion is grow­ing fast. And gains in Asia this year com­pare fa­vor­ably with the scene else­where.

U.S. in­vest­ment-bank­ing rev­enues in the year to date stand at $20.58 bil­lion, just be­low $21.02 bil­lion for all of 2009. In Europe, where the con­tin­u­ing sov­er­eign-debt cri­sis has hurt in­vestor con­fi­dence, in­vest­ment-bank­ing rev­enues dropped sharply to $13.16 bil­lion from $18.61 bil­lion for all of 2009.

A big rea­son for the jump in Asian rev­enues is China. Chi­nese com­pa­nies con­trib­uted the biggest share of rev­enues within Asia, at 51% so far this year, the high­est per­cent­age ever and up from 35% last year, as they sought ad­vice on rais­ing cap­i­tal or ac­quir­ing com­pa­nies around the world. Next on the list were Aus­tralia, In­dia and Hong Kong.

The data cov­ers rev­enues col­lected from rais­ing money both through stock and debt, as well as from work on merg­ers and ac­qui­si­tions.

"From the con­ver­sa­tions we are hav­ing with clients, this mo­men­tum will con­tinue through the first quar­ter," said Cit­i­group Inc.' s Farhan Faruqui, head of global bank­ing in Asia. -PB News

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