APAC investment banking fees surpass US and Europe, reaching $11.9b in first half of 2025

In the first half of 2025, investment banking fees in the Asia-Pacific region, excluding Japan, saw a significant increase compared to Europe and the US, driven by growth in mergers and acquisitions (M&A) activities and equity capital markets (ECM). Data from LSEG revealed that a total of $11.9 billion in investment banking fees were generated in the Asia Pacific region, excluding Japan, marking a 27% rise from the previous year.

While Asia Pacific (ex-Japan) experienced substantial growth, the investment banking fees in the US and Europe declined by 5% and 11%, respectively, during the same period. Despite this growth, APAC fees only comprised 20% of the total global fees, with the Americas and Europe contributing 53% and 22%, respectively.

The rise in investment banking fees in the Asia-Pacific region was fueled by the surge in underwriting fees in the equity capital markets, reaching $2.3 billion in the first half of 2025, representing a 44% increase from the previous year, the highest first-half proceeds since 2023. Additionally, advisory fees from completed M&A deals in the region reached $1.6 billion, a 51% increase compared to the previous year.

The first half of 2025 also witnessed the announcement of at least 12 mega deals in the Asia-Pacific region, totaling $181.9 billion—the highest sum recorded since 2015. Noteworthy among these deals was the $24.4 billion takeover bid of Santos, Australia’s second-largest independent gas and liquids producer, by an international consortium led by XRG P.J.S.C., a subsidiary of Abu Dhabi National Oil Company.

Another significant deal on the horizon is the pending sale of Hong Kong’s CK Hutchison’s global ports business, including two port terminals in the Panama Canal. This deal is expected to further boost investment banking fees in the region.

Furthermore, debt market fees in Asia Pacific saw a 22% increase to $6.9 billion, while syndicated lending fees rose by 7% to $1.1 billion from the previous year. Chinese investment bank CITIC emerged as the leader in overall investment banking fees in the Asia-Pacific region (excluding Japan), earning a total of $649.1 million, accounting for 5.5% of the total investment banking fee pool in Asia-Pacific.

Amidst an eventful first half of 2025, characterized by the US imposing tariffs against major trading partners, including China, trade tensions continued to present challenges in the region. However, efforts to lower reciprocal tariffs by China and the US in early May provided some relief. As the 90-day suspension of tariffs nears expiration in early July, uncertainties surrounding trade are still clouding investment confidence.

Despite these challenges, analysts noted that Asia’s stable inflation rates, favorable liquidity conditions, and proactive government policies could offset potential threats to growth. In addition, the weakening US dollar may lead to an appreciation in regional currencies, attracting capital inflows and accelerating domestic consumption.