Wealth wishes: Continued macroeconomic activity and rising interest rates will boost industry revenue

Strong returns in a wide variety of financial markets and continued macroeconomic growth have benefited operators in the Investment Banking and Securities Dealing industry over the five years to 2018. Industry revenue growth was hindered during most of the period due to structural changes to the trading services that industry operators were permitted to conduct. However, operators are expected to benefit from numerous trends in 2018, including the total value of initial public offerings increasing. Boutique investment banks have focused on merger and acquisition advising, increasing their share of this product line, a trend that is expected to continue...purchase to read more.

Industry Statistics & Market Size
Revenue
$133bn
Annual Growth 13-18
3.2%
Forecast Growth 18-23
Profit
Employment
158,053
Businesses
15,165

Industry Threats & Opportunities

  • Declining fixed income and FICC trading revenue have forced the industry’s smaller operators to evolve
  • Proprietary and off-exchange trading have led industry revenue growth to remain muted
  • The industry is expected to benefit from moderate growth in trade volumes, interest rate growth and continued growth in business activity
  • Industry Report - Industry Analysis Chapter

    While the Investment Banking and Securities Dealing industry remains below its prerecessionary levels, it has grown steadily over the five years to 2018. Operators in the industry 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 2018, industry revenue is anticipated to increase an annualized 3.2% to reach $133.4 billion. The industry’s growth has largely stemmed from the value of initial public offerings (IPO) increasing significantly in 2017. This coupled with other key macroeconomic factors such as rising interest rates, this is expected to lead industry revenue to increase a robust 2.6% in 2018 alone...purchase to read more.

    Additional Insights for the Investment Banking & Securities Dealing Industry

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

  • Market research and understanding
  • Access to a highly skilled workforce
  • Having a high profile in the market
  • IBISWorld analysts also discuss how external factors such as Corporate profit and Investor uncertainty in the Investment Banking & Securities Dealing industry impact industry performance..

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    What's in this report

    What is the Investment Banking & Securities Dealing Industry?

    This industry is composed of companies and individuals that provide a range of securities services, including investment banking and broker-dealer trading services. They also offer banking and wealth management services and engage in proprietary trading (trading their own capital for a profit) to varying degrees. Investment banking services include securities underwriting and corporate financial services, while trading services include market making and broker-dealer services.

    Industry Products
  • Underwriting services (debt)
  • Trading and related services
  • Underwriting services (equity)
  • Advising 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
  • Corporate profit
  • Investor uncertainty
  • S&P 500
  • Initial public offerings

  • Current Performance
  • Securities underwriting activities
  • Cyclical and structural influences on trading revenue
  • Smaller operators evolve
  • Chart: Revenue Growth

  • Industry Outlook
  • Cyclical and structural influences on trading revenue
  • Smaller operators evolve
  • Table: Investment Banking & Securities Dealing Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Life Insurance & Annuities
  • Health & Medical Insurance
  • Reinsurance Carriers
  • Retirement & Pension Plans
  • Health & Welfare Funds
  • Open-End Investment Funds
  • Consumers

  • Key Selling Industries
  • Stock & Commodity Exchanges

  • Products & Services
  • Trading and related services
  • Underwriting services (debt)
  • Advising fees
  • Other
  • Underwriting services (equity)
  • Chart: Investment Banking & Securities Dealing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other
  • Financial
  • Energy and power
  • Healthcare
  • High technology
  • Industrial
  • Chart: Major Market Segmentation for the Investment Banking & Securities Dealing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Brokerage, clearing and exchange fees
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Investment Banking & Securities Dealing

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

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

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Investment Banking & Securities Dealing 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 Investment Banking & Securities Dealing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Corporate Profit (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Initial Public Offering (Ipo)
  • When a company (called the issuer) issues common stock or shares to the public for the first time.
  • Leveraging
  • Investing with borrowed money, which can increase potential gains but also risks greater losses.
  • Market-Making
  • Buying, selling or otherwise transacting with customers under a variety of market conditions and providing prices in response to customer requests.
  • Tier 1 Capital
  • Secure and transparent core capital comprising equity capital and disclosed reserves.
  • Troubled Asset Relief Program (Tarp)
  • A program instituted by the US government to purchase assets and equity from financial institutions in order to strengthen the financial sector.
  • 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

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    This report on Investment Banking & Securities Dealing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
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    • 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 Investment Banking & Securities Dealing 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

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