City investment bank Numis is aiming to add dealmakers as larger rivals cut back, while shifting its business away from its traditional reliance on equity capital markets.
The City’s biggest corporate broker, which has been building a fully-fledged investment bank in recent years, will look to “take advantage of opportunities”, its co-chief executive Alex Ham told Financial News.
“We will selectively look to take advantage of opportunities which may come up as the market remains challenging,” he said. “There have been headlines about our competitors, large and small, reducing headcount. We think that through the cycle that’s allowed us historically to accelerate some our growth plans. So we won’t be afraid of taking advantage of those opportunities.”
Numis reported full year revenue of £144.2m for 2022 on 8 December, down by 33% on last year when investment banking fees hit record highs.
Profit slumped by 72% to £20.9m, which Numis said was down to investments in its business. Capital markets fees slid by 62% as initial public offerings dried up in Europe this year, but Numis said that revenue from advisory work was up by 26% and had hit a record for the bank.
READ City investment bank Numis eyes fresh European push from post-Brexit Dublin office
Staff numbers have increased by 11% to 324 throughout the year, as the bank hired junior and mid-level investment bankers. However, staff costs fell by 24% to £74.9m as it cut bonus payouts last year.
Larger rivals including Barclays, Citigroup, Goldman Sachs and Morgan Stanley have all trimmed dealmakers in recent months. Meanwhile, a number of Wall Street banks including JPMorgan and Bank of America are eyeing bonus pool reductions of around 30%, according to people familiar with the matter.
Numis opened its first office in the EU in August, with its new Dublin operation geared towards more IPOs, M&A and private capital markets activity on the continent.
“We acted on £1.1bn of private fundraises last year, and every single one of those was from non-UK issuers,” said Ross Mitchinson, Numis’ co-chief executive.
Last year, 14% of Numis’ investment banking fees came from outside the UK, down from 18% a year earlier.
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