A boom in UK deals is set to bolster investment banking revenues at Numis by 47% this year, as the firm pushes to expand beyond its City broker roots.
Numis is set to post £150m in investment banking revenues for the full year ending 30 September, it said in a trading update, with M&A and private markets transactions bolstering earnings alongside its traditional capital markets activities.
“Whilst there was an anticipated pause in IPO activity and more subdued markets in general over the summer period, this was offset by the completion of a number of significant M&A transactions involving Numis in a lead advisory capacity,” the bank said.
Numis holds more corporate broking mandates than any other firm, according to Adviser Rankings, but has been pushing to move away from its traditional roots as a broker into a fully-fledged investment bank.
It has been hiring dealmakers over the past two years to bolster its M&A business, and a boom in UK deals this year — particularly as US private equity firms have swooped on British companies — has helped bolster revenues.
The bank said that full-year revenue across the firm will be £215m, compared to £154.9m for the full year 2020. Profits will be “significantly higher” than last year’s £37.1m, it added.
“During the second half we continued to selectively invest in talent, to both increase the capacity of the investment banking platform and broaden our capabilities,” the statement added.
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