Report: Investment banks’ revenues in Russia fall 60% to $326 million 2014

MOSCOW, Jan 19 (PRIME) -- Investment banks’ revenues in Russia fell 60% to U.S. $326.3 million in 2014, the lowest figure since 2004, Thomson Reuters reported on Monday.

There was a double-digit decline in all types of assets, particularly underwriting commissions on the debt capital market fell by 77% sharply to $67.1 million, it said.

Commissions from syndicated lending fell 70% to $48.9 million.

Total commissions from underwriting on the equity market fell 52% to $50.7 million.

Commissions from consulting on finished mergers and acquisitions (M&A) fell 38% to $159.7 million.

State-run Sberbank, which has a 15% share on the investment market and received $47.8 million commissions, was Russian top investment bank in 2014. VTB and City Bank were on the second and the third positions, respectively.

M&A, equity, debt market dynamics

Russia’s M&A market stagnated 71% on the year to $17.3 billion in 2014, the record low since 2002, while international M&A market rose 48%.

The largest deal on the M&A market was the $3.5 billion merger of Tele 2 Russia with Rostelecom in February 2014.

The activity of Russian companies on foreign M&A market rose 92% on the year to $5.4 billion. Italy was the most attractive destination for investors, which accounted for 30% of M&A deals.

Barclays received largest commissions from Russian companies’ M&A deals at $4.8 billion in 2014, while Goldman Sachs and Credit Suisse were on the second and the third place, respectively.

The Russian equity market decreased 76% to $2.3 billion in 2014, the record low since 2003. Retailer Lenta, which raised $974 million by an initial public offering (IPO), was the largest deal on the market. VTB Capital was the market’s leader with a 19% market share.

Investment banks’ revenues from activities on the Russian debt capital market amounted to $18 billion, the record low since 2005. The largest bid was a $1.4 billion placement by Gazprom in June 2014.

Debt capital market fell 70% to $9.5 billion in 2014. The largest player was VTB Capital with a 23% market share, Gazprombank was on the second place and JP Morgan was on the third place.

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