HSBC leapfrogs rivals in DCM to lead on fees

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HSBC worked with Budweiser brewer AB InBev on a big bond issue in January

The bank has this year stolen market share from rivals and marched to the top of the DCM revenue rankings for Europe, the Middle East and Africa, according to data from Dealogic.

HSBC earned $ 375 million in revenues from debt capital markets work in the region over the year to November 30, around $ 40 million more than UK rival Barclays in second. Deutsche Bank makes up the top three with DCM revenues of $ 317 million.

The UK bank’s fees earned in 2016 have already outstripped last year’s total of $ 330 million, which gave it a 6.3% market share. Its share of the overall fee pool this year has risen to 7.4%.

HSBC’s position at the top with just one month of the year left is notable as it has only ended among the top three fee earners in DCM once since 2006; the other occasion coming in 2014 when it finished third.

The success – in a year dominated by political upsets in the shape of the UK’s Brexit vote and Donald Trump’s US election win – comes after a push to take market share in the wake of organisational changes at HSBC’s global banking division, according to global co-head of DCM Jean-Marc Mercier.

A February 2016 revamp of HSBC’s investment bank saw a merger of the division’s banking and capital financing units in a move designed to bring product teams and client relationship managers closer together.

Mercier told FN: “Talking to clients in one voice from the same room has really helped.”

HSBC started the year as one the bookrunners as beer giant AB InBev sold $ 45.8 billion of bonds to help finance its acquisition of rival SABMiller. Other landmark deals have included its work on Saudi Arabia’s $ 17.5 billion bond in October.

The bank was also on one of the first deals to come to market in the wake of the UK’s vote to leave the European Union, helping British American Tobacco sell £500 million of notes at the end of June.

Mercier said: “When markets were tougher, we would push dollars. Before the US presidential election we encouraged our clients to pursue dollar issuance. The dollar market was wide open when sometimes Europe was a bit volatile.”

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