Bank on it: Lingering unfavourable trading conditions have limited industry performance
The performance of investment bankers and securities brokers has fluctuated Strongly in recent times. Uncertainty surrounding global economic growth, due to firstly the COVID-19 pandemic and subsequently inflationary pressures and related cash rate hikes, has hurt business confidence and stymied market activity. Incomes were buoyed by strong amounts of merger and acquisition (M&A) activity and intermittent surges in IPO activity. Compliance costs and increasing competition from online trading platforms have weighed on traditional stockbrokers' performances, despite higher trading volumes. Industry revenue is expected to fall at an annualised 2.7% over the five years through 2023-24, to $6.4 billion. The gradual easing of Inflationary pressures, plateauing interest rates and stabilising business confidence are anticipated to improve revenues for investment banks and brokers. Consequently, revenue is set to rise by 6.0% in the current year.
Industry operators provide investment banking and brokerage services. Brokerage services include trading stocks, shares or other financial assets on a commission or transaction fee basis. Investment banking services include corporate finance and advisory services, underwriting and principal trading.
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.
Table of Contents
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- UBS Holdings Pty Ltd
- Macquarie Group Limited
Methodology
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