Newfound interest: Major industry players will benefit from heightened interest rates and volatility

The Global Investment Banking and Brokerage industry's focus on recovery has been damaged by persistent interest rate stability and regulatory changes over the five years to 2017. Central bank monetary policies, coupled with regulatory changes that either restrict or eliminate proprietary trading, have harmed the industry's fees and profit margins from trading services. Nevertheless, the industry's smaller operators are continuing to evolve. Since competing in FICC requires scale and massive investments in technology and compliance, boutique investment banks have alternatively focused on M&A advising, steadily increasing their share of this product line...read more.

Industry Statistics & Market Size
Revenue
$214bn
Annual Growth 12-17
-2.3%
Forecast Growth 17-22
Profit
Employment
199,969
Businesses
22,258

Industry Threats & Opportunities

  • Much of the industry's trouble in recent years has stemmed from fixed income, commodities and currencies trading operations
  • Regulatory introductions are anticipated to temper expected profitability gains
  • Improving cyclical trends are forecast to return the industry to growth
  • Industry Report - Industry Analysis Chapter

    Over the five years to 2017, the Global Investment Banking and Brokerage industry has struggled to combat the continued fallout from the most recent global financial crisis. Industry operators primarily earn revenue from two broad product and service lines: traditional investment banking services (e.g. securities underwriting and corporate advisory services) and trading services. Over the five years to 2017, industry revenue is anticipated to decline at an annualized rate of 2.3% to reach $213.5 billion, despite growth of 3.0% in 2017, as a result of weak global growth, struggling M&A markets in key regions and challenging conditions in 2016. Thi...purchase to read more.

    Additional Insights for the Global Investment Banking & Brokerage Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Global Investment Banking & Brokerage Industry are

  • Well-developed internal processes
  • Provision of a related range of services
  • Having a good reputation
  • IBISWorld analysts also discuss how external factors such as Global investor confidence and MSCI World Index in the Global Investment Banking & Brokerage industry impact industry performance..

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    What's in this report

    What is the Global Investment Banking & Brokerage Industry?

    This industry covers global investment banking and brokerage activities. Firms provide a diverse range of securities services, including investment banking and broker-dealer services. They also offer banking and asset management services and engage in proprietary trading (trading their own capital for a profit).

    Industry Products
  • Trading and related services
  • Interest from investments
  • Loan commitment fees
  • Debt underwriting fees
  • Equity underwritng fees
  • M&A fees
  • Industry Activities
  • Underwriting, originating or maintaining markets for securities issuance
  • Principal and proprietary trading
  • Providing corporate strategy advisory services
  • Providing corporate finance services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Global investor confidence
  • MSCI World Index
  • LIBOR - London Interbank Offered Rate
  • Downstream Demand - Mining

  • Current Performance
    Market conditionsThe regulatory environmentSmaller firms evolve
  • Chart: Revenue Growth

  • Industry Outlook
    Subdued economic expansionInnovating and evolving
  • Table: Global Investment Banking & Brokerage Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Global Investment Banking & Brokerage Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Global Life & Health Insurance Carriers
  • Global Pension Funds
  • Global Consumers

  • Key Selling Industries
  • Global HR & Recruitment Services

  • Products & Services
  • Trading and related services
  • Interest from investments
  • Debt underwriting fees
  • M&A fees
  • Equity underwritng fees
  • Loan commitment fees
  • Chart: Global Investment Banking & Brokerage Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other
  • Financial companies
  • Energy and power companies
  • Industrial companies
  • Government and agencies
  • High technology companies
  • Chart: Major Market Segmentation for the Global Investment Banking & Brokerage Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Global Investment Banking & Brokerage

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Global Investment Banking & Brokerage Industry

  • Industry Globalization
    JPMorgan Chase & Co., Bank of America Corporation, Citigroup Inc., Morgan Stanley, The Goldman Sachs Group, Inc., Deutsche Bank AG, Barclays,
  • Table: JPMorgan Chase & Co. - financial performance
  • Table: Bank of America Corporation - financial performance
  • Table: Citigroup Inc. - financial performance
  • Table: Morgan Stanley - financial performance
  • Table: The Goldman Sachs Group, Inc. - financial performance
  • Table: Deutsche Bank AG - financial performance
  • Table: Barclays - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Global Investment Banking & Brokerage Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Global Investment Banking & Brokerage Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • MSCI World Index (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Leveraging
  • Investing with borrowed money, which can increase potential gains but also risks greater losses.
  • Market-Making
  • The decision to buy, sell or otherwise transact with customers for a specific security. Revenue is generated through the difference between buy and sell prices on transactions.
  • Tier 1 Capital
  • Secure and transparent core capital comprising equity capital and disclosed reserves.
  • Volcker Rule
  • A specific section of the Dodd-Frank Wall Street Reform and Consumer Protection Act that restricts US banks from making certain kinds of speculative investments that do not benefit their customers.
  • What Our Customers Say

    Why buy this report?

    The global economy presents its own set of opportunities and threats for businesses in a range of industries. IBISWorld’s Global Investment Banking & Brokerage global market research report offers insightful industry analysis and research into the market at an international level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Global Investment Banking & Brokerage:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Global Investment Banking & Brokerage market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Global Investment Banking & Brokerage, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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