Investment Banking Fees Fell 15% in Q3-to-Date for Major Banks, Jefferies Reports

Investment banking revenue for eight major global banks has fallen 15% year-over-year in the third quarter to date, dragged down by a sharp decline in debt and advisory activity, according to a new analysis from Jefferies. The total revenue pool of $9.7 billion also represents a 27% drop from the previous quarter, signaling a slowdown in dealmaking momentum.

A Mixed Third Quarter

The decline in overall fees was driven by significant weakness in two of the three core investment banking segments. The analysis, which tracks performance through September 1, highlighted a divergence in market activity:

• Equity Capital Markets (ECM): This was the sole bright spot, with revenues rising 22% year-over-year to $2.4 billion.
• Advisory: Fees from M&A and other advisory services fell 14% to $4.3 billion.
• Debt Capital Markets (DCM) & Lending: This segment saw the steepest decline, with revenues plummeting 32% to $3.1 billion.

Divergent Bank Performance

Performance varied significantly among the U.S. banking giants. According to Jefferies, Goldman Sachs and JPMorgan demonstrated the most resilience, with their investment banking revenues declining by only 2% and 4%, respectively.

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In contrast, Bank of America experienced a much sharper downturn, with its investment banking revenue falling by 40% during the same period, lagging its major peers.

Annualized Trends Show Underlying Growth

Despite the third-quarter slump, the picture for the full year remains more positive. On an annualized basis for 2026, global revenues are up across all major segments compared to 2025. Annualized ECM revenues have surged 40% to $22.7 billion, while DCM revenues are up 13% to $34.8 billion.

Global M&A advisory revenues for 2026 stood at $46.6 billion on an annualized basis, a 7% increase from the prior year. U.S. banks have maintained a strong position, capturing 39.1% of global M&A fees and 40.5% of ECM fees, the report noted. This longer-term data suggests that while the current quarter is challenging, the foundational market for capital raising and M&A has been stronger in 2026 than in the previous year.