The Strategist

FT: Banks earn record $ 125 billion in fees in 2020

12/30/2020 - 04:25

Banks earned a record $124.5bn in fees in 2020, thanks to increased volatility in the equity market and rising debt markets, reported the Financial Times (FT), citing data from researchers at Refinitiv.

Jason Goldberg, an analyst at Barclays UK, says: "This year has been a very busy year for both bond and equity markets as companies have turned to the capital markets to strengthen their balance sheets in the face of the uncertainty caused by the pandemic.

Refinitiv calculates that companies have floated a record $5 trillion in bonds and other debt this year. The activity in the debt market has allowed banks involved in bond offerings and borrowings to earn $43 billion in fees alone from this activity, up 25% from a year earlier. 

In addition, a surge of initial public offerings in the second half of the year also played into the hands of the organizing banks: their commissions for the IPO rose by 90%, to $ 13 billion, which is a record since 2000.

Earlier, it became known that this year Western investment banks will earn a record on transactions with Chinese securities. 

According to Dealogic calculations, since the beginning of the year such commissions of investment banks that are not based in China, have already grown by 113% for 11 months of the year, compared with last year, and reached $ 1.73 billion, so the record of 2010 ($ 1.77 billion) that is likely to be broken in 2020.