Brexit May Cut Investment Banks’ Revenue by $8 Billion, BCG Says
- Boston Consulting Group sees global fees falling on EU vote
- Banks could shut some units or move to other European cities
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Britain’s vote to leave the European Union will probably reduce global investment banks’ revenue by about $8 billion and could push securities firms to exit some trading businesses, according to a report by the Boston Consulting Group.
Revenue from mergers and acquisitions advice, equity underwriting, bond sales and securities trading is forecast to fall to about $204 billion in 2016 from $228 billion a year ago, the consulting firm wrote in a research report published on Friday. The estimate was revised down from $212 billion as a direct consequence of Brexit, which has the potential to cut M&A fees in the European region by as much as 60 percent.