Brokerages are rebounding from the deep financial crisis, a new report says. Investment banking fee revenue around the world recovered 12%, hitting $66.3 billion (U.S.) last year, the report Monday by International Financial Services London said, but that was down by more than a fifth from the record fees of 2007.
"Equity underwriting, fixed income underwriting and mergers and acquisitions (M&A) advisory work each accounted for around a third of investment banks' business in 2009," said the report from the organization, which represents the British financial services sector.
Revenue from M&A advisory work, typically the main source of investment banks' business, has fallen considerably since the start of the economic crisis. With less competition following the closure of a number of banks, some investment banks posted large profits in 2009 as they were not faced with trading losses and writedowns to the same extent as in the previous two years.
The report added that the assets of the world's biggest 1,000 banks rose 6.8% in the 2008-2009 fiscal years to a record $96.4 trillion, though profits fell by 85% to $115 billion.