Morgan Stanley 2015 Annual Report Download - page 56

Investment Banking.
Investment Banking Revenues.
% Change
from Prior Year:
2015 2014 2013 2015 2014
(dollars in millions)
Advisory revenues ....................................... $ 1,967 $ 1,634 $ 1,310 20% 25%
Underwriting revenues:
Equity underwriting revenues ............................ 1,398 1,613 1,262 (13)% 28%
Fixed income underwriting revenues ....................... 1,643 1,956 1,805 (16)% 8%
Total underwriting revenues ................................ 3,041 3,569 3,067 (15)% 16%
Total investment banking revenues .......................... $ 5,008 $ 5,203 $ 4,377 (4)% 19%
Investment Banking Volumes.
2015(1) 2014(1) 2013(1)
(dollars in billions)
Announced mergers and acquisitions(2) ...................................... $ 1,550 $ 657 $ 497
Completed mergers and acquisitions(2) ....................................... 636 624 526
Equity and equity-related offerings(3) ........................................ 67 72 61
Fixed income offerings(4) ................................................. 256 286 291
(1) Source: Thomson Reuters, data at January 15, 2016. Announced and completed mergers and acquisitions volumes are based on full credit to each of the advisors
in a transaction. Equity and equity-related offerings and fixed income offerings are based on full credit for single book managers and equal credit for joint book
managers. Transaction volumes may not be indicative of net revenues in a given period. In addition, transaction volumes for prior periods may vary from
amounts previously reported due to the subsequent withdrawal or change in the value of a transaction.
(2) Amounts include transactions of $100 million or more. Announced mergers and acquisitions exclude terminated transactions.
(3) Amounts include Rule 144A issuances and registered public offerings of common stock and convertible securities and rights offerings.
(4) Amounts include non-convertible preferred stock, mortgage-backed and asset-backed securities, and taxable municipal debt. Amounts include publicly
registered and Rule 144A issues. Amounts exclude leveraged loans and self-led issuances.
2015 Compared with 2014.
Investment banking revenues of $5,008 million in 2015 decreased 4% from the prior year due to lower underwriting
revenues, partially offset by higher advisory revenues.
• Advisory revenues increased led primarily by merger, acquisition and restructuring transactions (“M&A”) in the
Americas. Global industry-wide announced M&A volume activity for 2015 increased significantly compared with
2014.
• Equity underwriting revenues decreased driven by decreases in initial public offering volumes. Fixed income
underwriting revenues decreased primarily driven by lower non-investment grade bond and loan fees.
2014 Compared with 2013.
Investment banking revenues of $5,203 million in 2014 increased 19% from the prior year driven by increases across both
underwriting and advisory revenues.
• Advisory revenues from M&A increased due to increased deal activity in the Americas and Asia-Pacific regions.
Industry-wide announced M&A volume activity for 2014 increased across all regions compared with 2013,
primarily driven by cross-border activity.
• Equity underwriting revenues increased driven by increased activity with clients across all regions. Fixed income
underwriting revenues increased driven by increased investment grade volumes.
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