Breaking the bank: More extensive regulation and fines are likely to dampen industry growth

The Investment Banking and Securities Brokerage industry has endured extensive volatility since the onset of the financial crisis. Despite sweeping regulatory changes, intermittent scandals, large fines for misconduct and an uncertain political environment, the industry is expected to expand steadily over the five years through 2017-18. Following the financial crisis, the industry quickly rebounded as unstable conditions drove up both trading volumes and margins. However, some operators were severely affected by the financial crisis and were ill positioned to profit from improving market conditions in the following years. IBISWorld expects industry revenue to grow at a compound annual rate of 2.5% to £50.2 billion over the five years through 2017-18...read more.

Industry Statistics & Market Size
Revenue
£50bn
Annual Growth 13-18
2.5%
Forecast Growth 18-23
Profit
Employment
52,731
Businesses
1,025

Industry Threats & Opportunities

  • The regulatory environment is expected to tighten further, moderating industry expansion
  • Rising funding costs are expected to put pressure on industry profit margins
  • The industry is highly globalised will be significantly affected by leaving the European Union
  • Industry Report - Industry Locations Chapter

    LondonLondon is one of the world’s largest financial centres. For this reason, it generates an estimated 45% of the financial services sector’s value-added to the UK economy. Investment banking activity is strongly centred in London to cater to the many large companies that have their headquarters or European bases located there. Stockbrokers catering to retail clients tend to be slightly more widely dispersed, because the retail brokerage segment’s customer base is more spread out geographically.The concentration of firms in London reflects the city’s status as a global banking hub. According to figures from the ONS, in 2017 London was home to 35.8% of investment banking and brokerage establishments in the United Kingdom...purchase to read more.

    Additional Insights for the Investment Banking & Securities Brokerage Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Investment Banking & Securities Brokerage Industry are

  • Access to highly skilled workforce
  • Having a good reputation
  • Ability to quickly adopt new technology
  • IBISWorld analysts also discuss how external factors such as FTSE 100 and Official bank rate in the Investment Banking & Securities Brokerage industry impact industry performance..

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    What's in this report

    What is the Investment Banking & Securities Brokerage Industry?

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

    Industry Products
  • FICC trading
  • Equities trading
  • Underwriting
  • Financial advisory services
  • Industry Activities
  • Underwriting, advising on and assisting capital raising
  • Brokering securities and market-making
  • Advising on transactions, including mergers, acquisitions and asset sales
  • Proprietary trading
  • Researching investments
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • FTSE 100
  • Official bank rate
  • Mergers and acquisitions involving UK companies
  • House price index
  • World price of crude oil

  • Current Performance
  • EU referendum
  • Significant change
  • Regulatory conditions
  • Consolidation activity
  • Harsh penalties
  • Chart: Revenue Growth

  • Industry Outlook
  • Single market
  • Exit strategy
  • Confident markets
  • Banking reform
  • Table: Investment Banking & Securities Brokerage Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Investment Banking & Securities Brokerage Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Manufacturing
  • Financial and Insurance Activities
  • Reinsurance
  • Fund Management Activities

  • Key Selling Industries
  • Accounting & Auditing
  • Legal Activities

  • Products & Services
  • FICC trading
  • Equities trading
  • Underwriting
  • Financial advisory services
  • Chart: Investment Banking & Securities Brokerage Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Financial sector
  • Non-financial clients
  • Government clients
  • Retail clients
  • Chart: Major Market Segmentation for the Investment Banking & Securities Brokerage Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesRent and depreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Investment Banking & Securities Brokerage

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Investment Banking & Securities Brokerage Industry

  • Industry Globalization
    Barclays plc, Goldman Sachs Group Holdings (UK) Limited,
  • Table: Barclays plc - financial performance
  • Table: Goldman Sachs Group Holdings (UK) Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Investment Banking & Securities Brokerage Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Investment Banking & Securities Brokerage Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Ficc Trading
  • Trading in fixed income products, commodities and currencies. An ancillary service offered by investment banks.
  • Initial Public Offering (Ipo)
  • The first time a company sells its stock to the general public to raise money.
  • London Interbank Offered Rate (Libor)
  • The average interbank interest rate offered by the world's most creditworthy banks.
  • Mid-Cap
  • A term used to describe companies that have medium-size market capitalisations. Market capitalisation is calculated by multiplying the number of outstanding shares by the current stock price.
  • Residential Mortgage-Backed Securities (Rmbs)
  • Securities that yield cash payments from homeowners paying off their mortgages.
  • What Our Customers Say

    Why buy this report?

    The Investment Banking & Securities Brokerage market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Investment Banking & Securities Brokerage:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Investment Banking & Securities Brokerage market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Investment Banking & Securities Brokerage, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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