Investment banks play a crucial role in facilitating capital raising, mergers and acquisitions, and other financial services for corporations and institutions. Their performance and rankings in various sectors and regions serve as an important indicator of their competitiveness and market share. In 2020, despite the challenges posed by the COVID-19 pandemic, major investment banks around the world remained active in deal-making across industries. Analysing the league tables provides insights into the strengths of different investment banks.
Goldman Sachs led in global M&A advisory in 2020
According to Refinitiv league tables, Goldman Sachs ranked No.1 in the global M&A financial advisory sector in 2020, having advised on $748 billion worth of deals. This cemented its position as one of the most dominant investment banks in advising large M&A transactions. Morgan Stanley took the second spot with $684 billion in deal value, followed by JP Morgan at No.3. The top 10 also included European banks like Rothschild & Co and Lazard which have traditionally been strong in M&A advisory.
Equity capital markets were led by Chinese and American banks
In global equity capital markets underwriting, Chinese state-owned investment banks China International Capital Corporation and Citic Securities took the top two spots in 2020, underwriting $67.7 billion and $44.8 billion in deals respectively. They were followed by American banks JP Morgan, Goldman Sachs and Morgan Stanley in the top 5. Chinese banks benefited from the boom in Chinese stock listings, especially the STAR Market tech board in Shanghai. U.S. banks still held strong positions due to their global footprint.
Morgan Stanley topped Asia ex-Japan M&A rankings in 2020
According to Bloomberg league tables, Morgan Stanley was the top investment bank for M&A deals in Asia ex-Japan in 2020, having advised on $115 billion worth of transactions. UBS and Goldman Sachs took 2nd and 3rd place respectively. Chinese banks like CICC and Citic Securities also featured in the top 10, reflecting their increasing clout in Asian markets. The rankings highlight the continued dominance of American and European banks in the Asia M&A space despite competition from Chinese rivals.
JD.com’s IPO boosts investment banks focused on China
JD.com’s $4.5 billion secondary listing in Hong Kong was the largest IPO globally in 2020. It provided a boost to investment banks with strong China capabilities, with Bank of America topping the rankings as the lead left underwriter, followed by UBS, CLSA and CICC. According to Dealogic, Chinese companies accounted for 40% of the total IPO proceeds in Asia Pacific in 2020. Hence banks able to leverage their China expertise like CICC performed strongly in equity capital market underwriting.
The 2020 investment banking league tables reflect both the geographic strengths of banks and their sector expertise. Chinese banks made strong gains but American powerhouses like Goldman Sachs and Morgan Stanley still dominate high value complex deals. Banks with China capabilities benefited from Chinese companies’ active capital raising.