The New York-based company, which reported strong earnings Friday, also provided financial advice on 91 transactions announced through the end of September, coming in first on The Deal's league tables for sales higher than $100 million with at least one party in the U.S. As for the bank's traditional rivals, Goldman Sachs (GS) - Get Goldman Sachs Group, Inc. (GS) Report came in second with 77 deals; Morgan Stanley (MS) - Get Morgan Stanley (MS) Report, with 76, placed third; Bank of America's (BAC) - Get Bank of America Corp ReportMerrill Lynch was fourth with 60; and Citigroup (C) - Get Citigroup Inc. Report, with 45, was sixth, according to The Deal, a subsidiary of TheStreet.
While mergers and acquisitions this year have generally been smaller than the mega-deals announced in 2015, advising the companies involved remains a lucrative business for Wall Street. The five biggest U.S. investment banks are expected to report $5.2 billion in such revenue, which is generally recorded once deals are completed, in the three months through September, according to brokerage Keefe, Bruyette & Woods.
That's about 5.2% lower than last year, reflecting the reluctance of executives to propose major acquisitions amid the volatility generated by slowing growth in China, lower oil prices, Britain's exit from the European Union and a tumultuous presidential election in the U.S.
The volume of announced deals so far this year is about 22% lower than last year, which Brian Kleinhanzl of Keefe Bruyette said will probably lead to a 15% decline in advisory revenue for major U.S. banks this year and a drop of 20% in 2017.
JPMorgan CFO Marianne Lake said in July that it was too soon to evaluate the impact of June's so-called Brexit vote on mergers and acquisitions, but investors will scrutinize the bank's third-quarter report tomorrow for more insight.
"Generally speaking, uncertainty is not particularly conducive or constructive for M&A but, in this case, I think there are some offsets," Lake said when JPMorgan reported earnings for the three months through June. The company posted $1.05 billion in advisory revenue in the first half of the year, compared with $1.57 billion at Goldman, $1.09 billion at Morgan Stanley, $638 million at Bank of America and $465 million at Citigroup.
"In terms of the actual strategic dialogue with CEOs and at the boardrooms, it is as good as it's ever been," Lake noted. "And if you think about just the other factors that would be supportive of M&A, like cheap financing globally, low organic growth, good multiples, a solid economy in the U.S. and globally -- notwithstanding a bit of steam taken out in Europe or the U.K. -- all of that should continue to be supportive of strategic M&A."
The release of The Deal's league tables come after JPMorgan and a host of big banks reported earnings Friday. JPMorgan reported strong earnings, in part driven by a 14% increase in investment banking fees, where revenue climbed to $1.74 billion amid higher fees from deal advisory services as well as stock and bond underwriting.
Total revenue of $25.5 billion topped analysts' projections of $24.3 billion. Bond-trading revenue climbed 48% to $4.3 billion in the three months through September, supporting a prediction from Goldman Sachs that the biggest U.S. banks would see double-digit gains in fixed-income, currencies and commodities businesses.