KBW Matches Sandler on Deal Value

KBW Inc. matched a rival on the total value of deals it closed in the first half of 2012 and reported a 66.2 percent increase in investment banking revenue yesterday compared with the same quarter a year ago.

The boutique, which focuses on financial firms, said its investment banking segment revenue was $25.3 million in the three-month period that ended on June 30, up from $15.2 million in the same span a year ago. While the second quarter figure was off 6.5 percent from the prior quarter due to fewer M&A assignments, its chief executive officer said that the conditions are in place for more bank mergers. (See Verbatim, page 4.) Lower trading volumes reduced commission income and fixed income revenue fell, so that total revenue declined about 7.5 percent versus the second quarter of 2011.

KBW advised on 12 transactions worth about $1.43 billion that were completed in the first half of 2012, according to data compiled by Bloomberg. Closely-held competitor Sandler O’Neill & Partners LP worked on 15 deals worth about the same amount, the data show.

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