Moscow Bankers See Fees Slide 67% as Ukraine Crisis Grows - Bloomberg

Moscow Bankers See Fees Slide 67% as Ukraine Crisis Grows - Bloomberg:



"Investment banks in Moscow led by VTB Capital, Sberbank CIB and JPMorgan Chase & Co. (JPM) endured a 67 percent slide in fees so far this year as the Ukraine crisis brought threats of stiffer U.S. and European sanctions.



Bankers collected $108 million on Russian deals through April 20, compared with $325 million a year earlier, according to data from Freeman & Co., a New York consulting firm. The slump included some of the most lucrative segments, with fees from mergers and acquisitions falling 33 percent to $46 million, Freeman reported. Income from syndicated loans plunged 88 percent to $13 million, bond fees shrank 76 percent to $28 million and equities tumbled 24 percent to $21 million.



“The reality is that 2014 is probably already a lost year,” Chris Weafer, a partner at Moscow-based Macro Advisory and former chief strategist at Sberbank CIB, said in e-mailed comments. “The second quarter is likely to be worse than the first quarter as the big international investment funds stay away from Russia until the political risk is a lot clearer.”"



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