The 2019 data show the five leading US investment banks generated one-third of total investment banking revenue in 2019, holding a market share of more than 33%.
JP Morgan, who ranked as the world’s largest bank, made almost USD 6.9 billion profit from investment banking in 2019. In 2019, the twelve largest US and European banks generated USD 77.5 billion from investment banking, or USD 3 billion less compared to 2018, revealed the Wall Street Journal and Dealogic data.
Morgan Stanley and Bank of America ranked third and fourth with revenues of around USD 4.8 billion and USD 4.7 billion in 2019, respectively. Citigroup took fifth place on this list, with USD 3.8 billion of revenue in 2019.
The position of American banks in this area has been strengthened as a host of European banks - such as Deutsche Bank, Royal Bank of Scotland and UBS - have withdrawn from investment banking after suffering losses in the 2008 financial crisis.
The role of an investment bank is to help companies and governments raise capital from investors, such as pension funds or other money managers. The banks take the role of underwriter, making sure that bonds or stocks are competitively priced and sold. Investment bankers also help clients manage mergers and acquisitions.
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