Monday, Apr 16, 2012
Dubai: Investment banking fees earned by banks operating in the Middle East and North Africa (Mena) declined 8 per cent in the first quarter of 2012, according to data compiled by Thomson Reuters.
Investment banking fees fell this quarter continuing last years trend as the Arab Spring continues to take its toll on the banking sector.
This quarter was the lowest quarter for fees in the region since the second quarter of 2005, said Russell Haworth, Managing Director, Middle East and Africa at Thomson Reuters.
The Middle East debt issuance nearly doubled to $11 billion (Dh40.39 billion) during the first quarter compared to $5.7 billion in the same period last year. Investment grade corporate debt accounted for 81 per cent of the regional corporate debt issuance in the region while high yield debts accounted for about 10 per cent.
The overall investment banking fees reached $90.9 million during the first quarter compared to $98.6 million in the same period last year, posting the lowest quarterly fee income in the region since the second quarter of 2005.
By Babu Das Augustine, Deputy Business Editor
Gulf News 2012. All rights reserved.
