$6.4bn
$XXX.Xm
14,689
216
$X.Xbn
The performance of investment bankers and securities brokers has fluctuated Strongly in recent times. Uncertainty surrounding global economic growth, due to firstly the COVID-19 pandemic and subsequently inflationary pressures and related cash rate hikes, has hurt business confidence and stymied market activity. Incomes were buoyed by strong amounts of merger and acquisition (M&A) activity and intermittent surges in IPO activity. Compliance costs and increasing competition from online trading platforms have weighed on traditional stockbrokers' performances, despite higher trading volumes. Industry revenue is expected to fall at an annualised 2.7% over the five years through 2023-24, to $6.4 billion. The gradual easing of Inflationary pressures, plateauing interest rates and stabilising business confidence are anticipated to improve revenues for investment banks and brokers. Consequently, revenue is set to rise by 6.0% in the current year.The industry is highly regulated and in the declining phase of its economic life cycle. The industry is also characterised by low market share concentration. Investment banks charge a premium for specialised services like listing valuations and regulatory compliance filings. Several high-value IPOs occurred before the COVID-19 outbreak, including spin-offs of businesses like Coles and Viva Energy from Wesfarmers and Vitol. High-value M&A activity also occurred during the same time, like Asahi's acquisition of Carlton United Brewery and Coca-Cola European Partners' acquisition of Coca-Cola Amatil. Although absolute trade volumes have increased, higher compliance costs and growing process automation have forced many brokers to seek alternate revenue streams.Trading conditions are anticipated to remain challenging before inflationary pressures stabilise to acceptable levels. Sharemarket trade numbers are forecast to increase significantly over the next five years. This trend will likely offset forecast declines in commission fees over the period. Competition in the brokerage market is forecast to intensify, with online brokers likely to improve their market knowledge through partnerships with larger investment banks. New technologies are projected to continue altering brokerage firm operations, with more retail clients placing trades through online channels. Overall, industry revenue is forecast to grow at an annualised 2.9% over the five years through 2028-29 to total $7.4 billion.
Industry revenue has declined at a CAGR of 2.7 % over the past five years, to reach an estimated $6.4bn in 2023.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2024 | Revenue ($m)
2024 |
---|---|---|
Macquarie | 980.0 | |
UBS Holdings | 757.0 | |
Citigroup Global Markets | 320.0 |
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Industry revenue is measured across several distinct product and services lines, including Brokerage services, M&A services and Capital-raising services. Brokerage services is the largest segment of the Investment Banking and Securities Brokerage in Australia.
The appeal of online brokers has placed pressure on brokerage services fees charged
Industry operators provide investment banking and brokerage services. Brokerage services include trading stocks, shares or other financial assets on a commission or transaction fee basis. Investment banking services include corporate finance and advisory services, underwriting and principal trading.
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ANZSIC 6411 - Investment Banking and Securities Brokerage in Australia
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Inflationary pressures and related cash rate hikes saw trade volumes plummet dramatically in 2022-23. Higher costs and negative business confidence warded off many investors ...
Learn about an industry's products and services, markets and trends in international trade.
Investment banking services include advice related to merger and acquisition (M&A) activity, underwriting debt and equity products in private placements and public offerings, ...
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Most invest banking and stockbroking businesses set up shop in financial hubs, like Sydney and Melbourne. Consequently, New South Wales and Victoria combined account for just...
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
There is low concentration among investment bankers and stockbrokers. Boutique firms can appeal to a range of corporate and retail clients due to the perception of enhanced q...
Learn about the performance of the top companies in the industry.
Global investment banks like Goldman Sachs, and Citigroup operate in Australia. A depreciation of the Australian dollar has benefited foreign buyer activity in Australia's mi...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
The industry is heavily regulated by pieces of numerous legislation and institutional bodies. For example, the Corporations Act and ASIC govern the ASX and its members. On to...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Most Investing banking or broking businesses are labour-intensive, although cost structures vary between investment banks and securities brokers. Cost structures can also dif...
Including values and annual change:
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Key data sources in Australia include:
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
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The market size of the Investment Banking and Securities Brokerage industry in Australia is $6.4bn in 2024.
There are 216 businesses in the Investment Banking and Securities Brokerage industry in Australia, which has grown at a CAGR of 0.8 % between 2018 and 2023.
The market size of the Investment Banking and Securities Brokerage industry in Australia has been declining at a CAGR of 2.7 % between 2018 and 2023.
Over the next five years, the Investment Banking and Securities Brokerage industry in Australia is expected to grow.
The biggest companies operating in the Investment Banking and Securities Brokerage market in Australia are Macquarie, UBS Holdings and Citigroup Global Markets
Brokerage services and M&A services are part of the Investment Banking and Securities Brokerage industry.
The company holding the most market share in Australia is Macquarie.
The level of competition is high and increasing in the Investment Banking and Securities Brokerage industry in Australia.