Asia investment banking revenue hit $9.16 billion
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