Of interest: The falling Australian dollar has boosted offshore investment in the sharemarket

The Investment Banking and Securities Brokerage industry has grown strongly over the past five years. Industry income generated from investment banking activity rose over the period, as merger and acquisition (M&A) deal volumes and sizes increased. However, the industry’s brokerage side did not post significant growth. Compliance costs and increasing competition from online trading platforms have weighed on the performance of traditional stockbrokers, despite higher trading volumes. Overall, industry revenue is expected to increase at an annualised 4.6% over the five years through 2018-19, to $6.6 billion. This includes an anticipated increase of 3.6% in 2018-19.The industry is highly regulated, and in the mature phase of its economic life cycle...read more.

Industry Statistics & Market Size
Revenue
$7bn
Annual Growth 14-19
4.6%
Forecast Growth 19-24
Profit
Employment
15,727
Businesses
261

Industry Threats & Opportunities

  • Large IPOs have been beneficial to the industry’s performance over the past five years
  • Higher compliance costs and increased automation have put pressure on the broking sector
  • Sectors such as healthcare, technology and aged care are projected to be areas of growth
  • Industry Report - Industry Analysis Chapter

    The Investment Banking and Securities Brokerage industry relies heavily on client activity, which is influenced by many macro-economic factors. In line with economic activity, industry revenue is prone to sharp fluctuations. Merger and acquisition (M&A) activity was strong for most of the past five-year period. However, M&A activity was tempered over the second half of 2015-16, largely due to political uncertainty surrounding Australia’s 2016 Federal Election and the UK’s European Union referendum. Despite this, industry revenue is expected to grow at an annualised 4.6% over the five years through 2018-19, to $6.6 billion.Largely due to the increasing globalisation of local investment banking firms, industry enterprise numbers and employment have risen over the past five years. Hei...purchase to read more.

    Additional Insights for the Investment Banking and Securities Brokerage Industry

    IBISWorld has determined the most important Key Success Factors for the Investment Banking and Securities Brokerage are:

  • Market research and understanding
  • Having a high market profile
  • Producing premium goods and services
  • IBISWorld analysts also discuss how external factors such as Number of stock market trades and All Ordinaries index in the Investment Banking and Securities Brokerage industry impact industry performance..

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    What's in this report

    What is the Investment Banking and Securities Brokerage Industry?

    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.

    Industry Products
  • Brokerage services
  • M&A services
  • Capital-raising services
  • Industry Activities
  • Stockbroking or trading on commission
  • Commodity futures and securities broking and dealing, on commission
  • Financial-asset broking
  • Underwriting and new equity raising
  • Corporate finance and advisory services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of stock market trades
  • All Ordinaries index
  • Amount of equity capital raising
  • Business confidence index
  • Cash rate

  • Current Performance
  • Broking
  • IPO activity
  • M&A activity
  • Chart: Revenue Growth

  • Industry Outlook
  • Investment banking
  • Broking
  • Blockchain technology
  • Table: Investment Banking and Securities Brokerage Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Funds Management Services
  • Superannuation Funds Management Services

  • Key Selling Industries
  • Custody, Trustee and Stock Exchange Services
  • Financial Asset Investing
  • Legal Services
  • National and Regional Commercial Banks

  • Products & Services
  • Capital-raising services
  • Brokerage services
  • M&A services
  • Chart: Investment Banking and Securities Brokerage Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Corporate clients
  • Institutional clients
  • Private clients
  • Chart: Major Market Segmentation for the Investment Banking and Securities Brokerage Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Fees and commission
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Investment Banking and Securities Brokerage

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

  • Industry Globalization
    Macquarie Group Limited, UBS Holdings Pty Ltd,
  • Table: Macquarie Group Limited - financial performance
  • Table: UBS Holdings Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Investment Banking and 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 and Securities Brokerage Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Dark Pool
  • A market place where transactions between institutional clients are not displayed to the general public.
  • Equity Capital Markets
  • Includes IPOs, secondary capital raising by listed companies and debt issuance.
  • Ipo (Initial Public Offering)
  • The offering of new shares to the public by listing on a stock exchange.
  • Margin Lending
  • A form of borrowing to invest in shares and managed funds.
  • Proprietary Trading
  • Trading by a financial institution on its own accord using its own funds.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Investment Banking and Securities Brokerage market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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
    • Quickly build competitive intelligence
    This report on Investment Banking and 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 of 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 and 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 and 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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