Investment Banking & Securities Brokerage in the UK Industry Market Research Report now updated by IBISWorld

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The Investment Banking and Securities Brokerage industry has been on a roller-coaster ride over the past five years. IBISWorld estimates industry revenue will contract at an annualised 1.6% over the five years through 2012-13 to total £41.6 billion. The industry faces challenges over the next five years. With European politicians and regulators seemingly intent on damaging the UK banking sector and the economy forecast to remain sluggish for a few years, subdued revenue growth and more job losses are expected in 2013-14. However, all is not lost for the industry. Investment banks have shown an extraordinary capacity to reinvent following the many crises and changes that have affected the industry since the Great Depression. In the longer term, the outlook for investment banks and brokers should brighten as the economy recovers and investors rediscover equities. Having trimmed their balance sheets, cut staff and restructured their operations, investment banks should be well placed to capitalise on this. IBISWorld forecasts revenue will return to growth over the next five years to 2017-18. For these reasons, industry research firm IBISWorld has updated its report on the Investment Banking & Securities Brokerage industry.

IBISWorld Market Research

IBISWorld Market Research

Industry operators are starting to recover from the downturn

The Investment Banking and Securities Brokerage industry has been on a roller-coaster ride over the past five years. IBISWorld estimates industry revenue will contract at an annualised 1.6% over the five years through 2012-13 to total £41.6 billion. The industry faces challenges over the next five years. IBISWorld industry analyst Ee Jen Lee says, “with European politicians and regulators seemingly intent on damaging the UK banking sector and the economy forecast to remain sluggish for a few years, subdued revenue growth and more job losses are expected in 2013-14”. Volatile and downward trending equity markets and widespread investor wariness of shares will likely continue to hit smaller brokers hard, driving consolidation in the sector. Other major banks are also expected to follow the RBS's lead in reviewing their proprietary trading, equity markets and investment banking activities. Regulation changes forcing the ring fencing of retail banking operations could result in some of the industry's largest players separating their investment banking operations. Securities brokers will continue to lose business to online competition.
However, all is not lost for the industry. Lee adds, “investment banks have shown an extraordinary capacity to reinvent following the many crises and changes that have affected the industry since the Great Depression”. In the longer term, the outlook for investment banks and brokers should brighten as the economy recovers and investors rediscover equities. Having trimmed their balance sheets, cut staff and restructured their operations, investment banks should be well placed to capitalise on this. IBISWorld forecasts revenue will return to growth over the next five years to 2017-18.
The Investment Banking & Securities Brokerage industry has a low level of market share concentration. The demise of a number of firms such as Royal Bank of Scotland due to the financial crisis has driven an increase in concentration. The major companies include Barclays and Goldman Sachs. Major companies include Barclays and Goldman Sachs.
For more information on the Investment Banking & Securities Brokerage industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.

IBISWorld industry Report Key Topics

Investment banks and brokers act as intermediary between those wishing to raise capital (the sell side) and those able to provide it (the buy side), and facilitate the secondary trading of securities. Services to the sell side include underwriting capital raisings, and advising on mergers and acquisitions. Services to the buy side include research and trade execution. Investment banks also undertake proprietary trading on their own account.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.

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