The investment bankers and brokers industry has grown at a CAGR of 3.9% to $379.9 billion over the past five years, including an anticipated decrease of 1.7% in 2024 alone, with profit falling to 31.7% of revenue in the current years. Revenue from the industry's debt and equity underwriting segments increased drastically over 2020 and 2021 as companies and governments needed to raise cash quickly. Also, the industry encountered greater demand from SPAC IPOs in 2020 and 2021 which significantly grew revenue in the same years. In addition, economic uncertainty spiked as a result of health policy measures implemented by governments leading to increased market volatility. As a result, investors repositioned their portfolios and industry operators' revenue benefitted from increased trade activity due to volatility in financial markets over the past five years.
Trends and Insight
- Volatility in financial markets primarily stems from investor uncertainty. Increased volatility in financial markets has led to increased trading and investment-grade debt activity for companies.
- Debt underwriting’s share of industry revenue has increased. Investment banks serve as the middlemen between companies looking to raise funds by securitizing a company’s ownership or debt to be traded to investors in exchange for capital.
- Brokerages are in proximity to large population regions. The size of the population affects the size of the retail market.
- Economies of scale are essential. Businesses with the best and most cost-effective technological network are more competitive.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
This industry covers global investment banking and brokerage activities. Operators provide a diverse range of securities services, including investment banking and broker-dealer services. Operators also offer banking and asset management services and engage in proprietary trading, such as trading their own capital for a profit.
What's included in this industry?
- Underwriting, originating or maintaining markets for securities issuance
- Principal and proprietary trading
- Providing corporate strategy advisory services
- Providing corporate finance services
Table of Contents
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Citigroup Inc.
- JPMorgan Chase & Co.
- Morgan Stanley
- Bank of America Corporation
- Goldman Sachs Group Inc.
Methodology
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