European Investment Banks: Strong momentum

Research evidence excerpt

European Investment Banks: Strong momentum

Deutsche Bank

Research

Europe Industry Date

1 July 2026

Banks European

Banks Industry Update

Investment Banks

Strong momentum

Benjamin Goy

June-26 IB fee growth accelerates Research Analyst

June-26 marked another strong month for IB activity, with total fees rising 14% YoY

Sharath Kumar

(Figure 3), comfortably ahead of the 2025 trend (+19%) after accounting for typical

Research Analyst

post-month-end upward revisions (Figure 2). While Equity Capital Markets (ECM,

+64% YoY) remained the principal growth driver, M&A (+10% YoY) and Debt Capital Rishika Garg

Markets (DCM, +5% YoY) also contributed, the latter led by Investment Grade Research Associate

issuance (+27% YoY). The main area of weakness remained Syndicated Lending Robert Noble

(-20% YoY), while DCM High Yield was softer (-18% YoY). June fee generation Research Analyst

reached $11bn, one of the strongest monthly outcomes since 2H 2021 (Figure 22). Alfredo Alonso

2Q26 and 1H26 close on a strong note Giovanni Razzoli, CFA

The strength in June helped lift 2Q26 IB fees to +25% YoY (Figure 5), representing Research Analyst

a further acceleration from the growth rates achieved during 2025 (Figure 9). ECM

Marlene Eibensteiner

remained the standout segment (+88% YoY), but the recovery is becoming broad-

based, with DCM (+22% YoY) and M&A (+12% YoY) contributing positively, more

than offsetting ongoing weakness in Syndicated Lending (+1% YoY). Looking at 1H Miriam Killian

2026 (Figure 7), total fees grew 24% YoY, supported by ECM (+73% YoY), M&A Research Analyst

(+21% YoY) and DCM (+16% YoY). The recent pickup in M&A volumes (Figure 20) Atul Hanamante

and continued strength in capital markets activity suggest fee momentum could Research Associate