Investment bank income down 23 percent on year
March 21, 2011 1:08 PM EST
Income for top investment banks fell by almost a quarter last year to $167 billion from a record performance in 2009, according to an industry report.
The drop came as staffing levels at the top 10 investment banks recovered to pre-crisis levels of about 66,000, following a 10 percent drop during the financial crisis, according to the study released on Monday.
Coalition, an independent research firm for the investment banking industry, said income for the top 10 investment banks fell 23 percent from a record $219 billion in 2009. Income had slumped to $124 billion in 2008 from $184 billion in 2007.
The London-based research firm said bankers in fixed income generated more income than their peers, bringing in an average of $3.7 million per person last year, almost double the average $1.8 million generated by bankers in equities and origination.
Fixed income has consolidated its position as the dominant driver of revenues in the last four years, Coalition said, despite greater market volatility and the need for banks to hold more capital for the business.
Fixed income contributed $94 billion of revenues last year, or 56 percent of the total, down from the record $139 billion in 2009 but up from $83 billion in 2007, when it accounted for 45 percent of overall revenues.
Equities brought in $37 billion last year, down from $55 billion in 2007, while origination and advisory revenues were $36 billion in 2010, down from $47 billion three years earlier.
The report estimated that the top 1,000 clients accounted for more than 65 percent of the banks' revenue pools.
(Reporting by Steve Slater)
Most Popular Slideshows
- Kristen Stewart Moving On With Nicholas Hoult, Jennifer Lawrence Dating Chris Martin – Reports [PHOTOS]
- Chris Martin Dating Reports: Jennifer Lawrence Vs Gwyneth Paltrow [PHOTOS]
- Kate Middleton Suffocated in Kensington Palace, Queen Elizabeth Reported War With The Duchess [PHOTOS]
- 2014 MTV Video Music Awards: Everything To Know [PHOTOS]
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- Saudi Arabia: Brothers Beheaded For Smuggling Marijuana Into The Kingdom
- ISIS Posts Graphic Beheading Video of US Journalist James Foley
- ISIS: More Journalists Beheading To Come After James Foley and Steven Sotloff [Video]
- Moto X+1 is Likely Nexus 6 Template; Motorola Shamu is 1st Android Silver with Snapdragon 810 – Reports
- Nexus 6 Release Date Dilemma with Motorola Shamu Details Pointing to Better Smartphone and Killer Features
- James Foley’s Executioner Has British Accent—A Chilling Reminder That ISIS Has Foreign Members
- After James Foley, ISIL Threatens to Behead Another American Journalist Steven Sotloff