APAC’s total investment banking fees in 2021 highest-ever on record

The region recorded its highest-ever equity capital market fees collected in a year.

Investment banking fees in the Asia Pacific (excluding Japan) reached an estimated $33.5b in 2021, 11.8% higher than the previous year, according to a report by Refinitiv.

This marks the highest annual period since records began in 2000, Refinitiv reported.

Equity capital markets (ECM) fees totalled $11.7b, up 21% from 2020, and the region’s strongest annual period on record. 

Debt capital markets (DCM) underwriting fees amounted to $14.1b, higher than 2020’s total DCM fees by 3.5%. 

Fees generated from completed mergers and acquisitions (M&A) transactions totalled $3.8b, a 16.9% rise from 2020’s numbers, and represented 11.3% of the region’s investment banking fees. 

Deal-making activity involving the Asia Pacific excluding Japan companies witnessed US$1.6 trillion worth of M&A transactions in 2021, up 68.1% in value from a year ago. This makes M&A transactions made in 2021 the highest-ever for an annual period since records began in 1980. 

Volume-wise, Asia M&A grew 16.8% from a year ago, also an all-time high, according to Refinitiv. In particular, the second half of 2021 saw the strongest quarters, with $559.3b during the third quarter and $419.4b in the fourth-quarter period.

Syndicated lending fees made up the remaining 11.5%. Syndicated loan fees grew 23.3% from 2020 and reached $3.9b. 

Amongst institutions, CITIC took the lead for overall investment banking fees in the Asia Pacific, excluding Japan, in 2021 with 5.9% of the share, reported Refinitiv.