Since the start of this year, BofA says it's hired at least 15 senior bankers. Senior bankers told Bloomberg in June that the focus is now on, "deepening long-term relationships" and that things should bounce back now that the internal Steinhoff investigation is over. Morgan have been helping to finance massive deals like Bayer's $57bn purchase of Monsanto.īofA would undoubtedly argue that it's not all bad. At the same time, BofA is said to be less willing than before to extend loans to help finance M&A deals after losing $292m on a loan to the Steinhoff Corporation - even as rivals like J.P. The exits were reportedly the result of internal squabbling and an excruciating approach to risk management as BofA's risk managers scrutinized potential deals from every conceivable angle and approved them slowly - if at all. bank was suffering an exodus of top M&A bankers: at least 14 managing directors had left, of whom 10 were in the U.S. advisory house may be attributed to reasons highlighted by Bloomberg in June. However you look at it, it's a fall from grace: BofA's M&A business has traditionally ranked between third and fifth in the U.S. market.īofA's sudden demise as a U.S. market were just $228m - less than a third of market leader Goldman Sachs. M&A revenues in the first half of 2018, down from third in 2017. Figures from Dealogic show that BofA ranked eighth for U.S.
What went wrong? At the time of its first quarter results, BofA blamed particularly strong comparables in 2017. Today, again, it said last year's second quarter was a "record," implying that some sort of drop off will be inevitable.Įven so, there are indications that something's up. Last year, they were $465m in the second quarter alone. As a result, BofA's M&A revenues are just $545m for the whole of the first half of 2018. The collapse in BofA's M&A revenues in the second quarter follows an earlier year-on-year fall of 30% in the first quarter.
Morgan and Citi saw M&A revenues rise year-on-year in the second quarter of 2018, at BofA they fell - dramatically.
The chart below reflects BofA's M&A aridity. While rivals' M&A revenues increased, BofA's withered on the vine. bank's M&A bankers saw very little rain in the three months to June, too. Today's second quarter results from Bank of America suggest the U.S. The 2018 drought isn't just restricted to Northern Europe.
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