07 Jan 2011
Fresh from being named the top European investment banking fee earner in 2010, Deutsche Bank has claimed another title – top European payer of investment banking fees for the same period.
The German bank, which topped the European investment banking revenue rankings last year with a 7.1% market share, was also the top investment banking fee payer, according to estimates by data provider Dealogic.
The financial institution paid $408m in fees last year, according to Dealogic estimates, much of which was generated via the bank’s $14bn October rights issue.
The Dealogic data includes fees paid for mergers and acquisitions, equity and debt capital markets work and loans. Where fees are not officially disclosed, Dealogic generates estimates.
The figures also include fees that banks pay their own divisions for any advisory or capital raising work. Deutsche Bank acted as a lead manager on its rights issue alongside 19 other lead managers, ensuring a high percentage of the $408m in fees will have been effectively recycled and paid to the bank's own divisions.
German car company Porsche was the second highest European fee payer after spending $171m for investment banking services, while natural resources giant BHP Billiton was third after spending $166m. UK bank Royal Bank of Scotland and Spain’s BBVA completed the top five, while the UK Government was in 10th place following a number of sizeable syndicated debt deals and the November sale of a high-speed rail line.
As Financial News reported yesterday, the biggest fee-payers to investment banks globally last year were institutions that were bailed out by the US government with Fannie Mae, Freddie Mac and AIG paying a combined total of more than $2bn for investment banking services.
Fannie Mae, the government-backed mortgage provider, topped the global investment banking fee payer rankings, according to Dealogic.
It spent $884m for investment banking services last year, while fellow government-sponsored entity Freddie Mac ranked second after paying $656m in fees. The two entities have received close to $150bn in aid since they were nationalised by the US government in September 2008.
AIG, the US insurance group that was bailed out by the US government in the same month, was the third biggest fee-payer to investment banks. It spent $582m in fees, most of which was derived from the divestment of its Asian arm AIA through an initial public offering in October last year.
-- write to matthew.turner@dowjones.com
source: www.efinancialnews.com
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