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Australia’s investment banking sector generated an estimated US$1.5 billion in fees during the first half of 2026, representing a 5.8 per cent increase compared with the same period last year, according to LSEG data.
The growth was driven by sharp increases in equity and debt capital markets activity, even as completed M&A advisory fees declined and the number of announced deals fell year-on-year.
Westpac Banking led Australia’s investment banking fee league tables with an estimated US$87.3 million in related fees, capturing 5.8 per cent wallet share. Barclays placed second with US$80.6 million, followed by JP Morgan with US$80.1 million.
M&A Activity Hits Four-Year High
M&A activity involving Australian companies reached US$58.4 billion in the first half of 2026, up 43.4 per cent year-on-year and the highest first-half total since 2022, according to LSEG data.
However, the number of announced deals declined 23.2 per cent compared with the same period last year, suggesting a shift toward larger transactions.
Target Australia M&A reached a five-year high of US$48.3 billion, up 57.3 per cent year-on-year. Domestic M&A activity grew 51 per cent from a year ago to US$21.1 billion, despite a 27.4 per cent decline in deal count.
Inbound M&A totalled US$27.2 billion, up 62.6 per cent from a year ago, while outbound M&A fell 37.3 per cent year-on-year to US$3.9 billion.
Macquarie Group led the Australia-involvement announced M&A league tables, advising on US$11.4 billion of transactions and capturing 19.5 per cent market share. Goldman Sachs placed second with US$10.4 billion and 17.8 per cent market share, while JP Morgan took third with US$9.8 billion.
Materials And Industrials Dominate Deal Activity
By sector, materials dominated M&A activity with US$13.2 billion in value, accounting for 22.5 per cent market share and up 38.9 per cent from a year ago, according to LSEG data.
Industrials followed with 21.3 per cent market share worth US$12.5 billion, representing a six-fold increase in value year-on-year. Financials grew 7 per cent year-on-year to US$8.9 billion, capturing 15.3 per cent market share.
Healthcare saw a fifteen-fold increase in deal value to US$6.3 billion, capturing 10.7 per cent market share. In contrast, high technology fell 47.7 per cent to US$4.6 billion with 7.9 per cent market share.
Largest Deals Of The Half
The largest announced deal during the period was the intended acquisition of Steadfast Group by an investor group, valued at US$4.7 billion. That was followed by Diamond Infraco 1’s intended US$4.4 billion acquisition of Atlas Arteria and Dhilmar’s pending US$3.9 billion deal for the Morabah North Joint Venture, according to LSEG data.
Other notable transactions included Regis Resources’ pending US$3.4 billion acquisition of Vault Minerals, Jardine Matheson Holdings’ pending US$2.4 billion deal for I-MED Radiology Network and Yancoal Australia’s pending US$2.4 billion acquisition of Kestrel Coal Group.
Equity Capital Markets Post Five-Year High
Equity and equity-linked issuances by Australian-domiciled issuers totalled US$14.1 billion during the first half of 2026, a 65.7 per cent increase from the same period in 2025 and the highest first-half total in five years, according to LSEG data. The number of equity issues increased 7.4 per cent from a year ago.
Follow-on offerings raised US$9.98 billion, up 50.4 per cent from a year ago, while the number of issues grew 6.5 per cent. Convertibles reached US$3.2 billion, a five-fold increase from a year ago and the highest first-half total since 2007.
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Australian issuers priced thirteen IPOs, raising US$929.2 million. That figure was down 30.4 per cent from a year ago despite a 44.4 per cent increase in the number of IPOs, reflecting smaller deal sizes.
IREN was the largest ECM deal of the half, raising US$3 billion through a convertible issue. NextDC followed with a US$1.08 billion follow-on offering, while MMG raised US$800 million through a follow-on listed in Hong Kong.
Goldman Sachs topped the Australia-domiciled ECM underwriting league tables with US$1.65 billion in related proceeds and 11.7 per cent market share. Citi placed second with US$1.5 billion and 10.6 per cent market share, while Canaccord Genuity took third with US$1.19 billion.
ECM Sector Breakdown
The materials sector led ECM activity, accounting for 37.9 per cent market share and raising US$5.4 billion, up 172.7 per cent from a year ago, according to LSEG data.
High technology captured 35.2 per cent market share worth US$5 billion, more than seven times the amount raised a year ago. Financials completed the top three sectors, raising US$1.4 billion, up 155.8 per cent year-on-year, accounting for 10 per cent of total ECM proceeds.
Record Bond Issuance
Primary bond issuance by Australia-domiciled issuers reached a record US$148.9 billion in the first half of 2026, up 33.3 per cent compared with the first half of 2025, according to LSEG data. That marked the highest semiannual total since records began in 1980.
The number of bond offerings increased 282 per cent year-on-year, making it the busiest first-half period since 2005.
Financials led issuance with 57.1 per cent market share, raising US$85.1 billion, a 26.7 per cent increase from a year earlier. Government and agencies followed with US$43.1 billion in proceeds, up 67.7 per cent year-on-year, capturing 28.95 per cent market share.
Industrials rounded out the top three sectors, raising US$4.8 billion, a 47 per cent increase compared with the first half of 2025.
The Commonwealth of Australia was the single largest bond issuer, with two sovereign issues raising US$10.03 billion and US$5.3 billion respectively. ANZ Banking Group and Westpac Banking Corp each issued US$2.25 billion in US-dollar-denominated investment grade corporate bonds.
DCM League Table
Westpac Banking led the Australian-domiciled bonds underwriting league table with US$19.1 billion in related proceeds and 12.9 per cent market share, according to LSEG data. National Australia Bank placed second with US$18.1 billion and 12.2 per cent market share.
UBS took third with US$12.7 billion, followed by Barclays with US$11.6 billion and Commonwealth Bank of Australia with US$11.1 billion.
Investment Banking Fees By Asset Class
DCM underwriting fees accounted for the largest share of the overall fee pool, totalling US$490 million and capturing 32.6 per cent of overall fees, an increase of 30 per cent from a year earlier, according to LSEG data.
ECM underwriting fees reached US$428.7 million, accounting for 28.5 per cent of the total fee pool and rising 72 per cent year-on-year.
Syndicated lending fees declined 19 per cent year-on-year to US$328.6 million, while completed M&A advisory fees fell to US$257 million, down 34 per cent compared with the first half of 2025.
Global Context
Australia’s fee growth of 6 per cent came in below the global average increase of 14 per cent, which saw US$78.2 billion in fees generated worldwide during the period, according to LSEG data.
The Americas led regional growth with fees of US$45.7 billion, up 25 per cent. Japan recorded a 23 per cent increase to US$2.9 billion. Europe grew 4 per cent to US$16.1 billion, while the Asia-Pacific region declined 3 per cent to US$12.1 billion. The Middle East and Africa fell 9 per cent to US$1.2 billion.
Last Updated on July 7, 2026 by Nick Ross
