If you work for J.P. Morgan now, you should be basking in the glow of your investment banking pre-eminence. The U.S. bank is now top of the league tables in pretty much every sector out there, according to a new ranking. For Deutsche Bank, it’s been a year to forget.
U.S. investment banks are, of course, top of the tree in the new 2016 league table released today by research firm Coalition. But J.P. Morgan’s grip on the top has got even tighter. Much of J.P. Morgan’s supremacy can be pinned on a new-found dominance in Europe, and also the fact that it’s moved up the ranks in equities globally. J.P. Morgan is now first in Europe across fixed income, currencies and commodities, the investment banking division and equities. This time last year, it was only tied at the top in FICC with Deutsche Bank and ranked second for everything else.
J.P. Morgan has knocked Deutsche Bank off the number one spot in European FICC, and is tied with Goldman Sachs for the number one slot in IBD. Deutsche Bank has retained the second place overall in European investment banking, but had to share it with Goldman. It’s also the only European bank to make it into the top five on their home turf. Barclays did, however, move into sixth thanks to an increase in its FICC revenues, but this – according to Coalition’s definition – still makes it a tier two bank.
Deutsche Bank has made way for Morgan Stanley in the top five globally, moving into sixth. In the U.S., where Deutsche Bank has continued to make some senior hires, it’s lost ground to Barclays and is now ranked seventh overall. However, it’s also lost its top spot in APAC – again, J.P. Morgan is top in the region along with Citi – and moved to joint third alongside Nomura, Morgan Stanley and Goldman Sachs. Still, Coalition does not include local Asian banks in it’s ranking and international firms now only account for 19% of the Asian investment banking wallet.
Deutsche’s traditional strength in FICC has started to ebb away last year. Deutsche lost its tier one position in rates in 2016 as other investment banks rates desks rebounded after the Brexit vote and Donald Trump’s election as president, suggest the figures.
Coalition bases the rankings on a combination of public announcements and its own research. Globally, there has been little movement year on year. Citi is now ranked number two overall, up from third in 2015. Bank of America Merrill Lynch is now also a tier two bank, having shifted down from second to fourth.
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