Investment Banking and Securities Brokerage in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: August 2023
ANZSIC K6411aRevenue
$6.4bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
14,689
Businesses
216
Wages
$X.Xbn
Investment Banking and Securities Brokerage in Australia industry analysis
The performance of investment bankers and securities brokers has fluctuated Strongly in recent times. Uncertainty surrounding global economic growth, due to firstly the COVID-19 pandemic and subsequently inflationary pressures and related cash rate hikes, has hurt business confidence and stymied market activity. Incomes were buoyed by strong amounts of merger and acquisition (M&A) activity and intermittent surges in IPO activity. Compliance costs and increasing competition from online trading platforms have weighed on traditional stockbrokers' performances, despite higher trading volumes. Industry revenue is expected to fall at an annualised 2.7% over the five years through 2023-24, to $6.4 billion. The gradual easing of Inflationary pressures, plateauing interest rates and stabilising business confidence are anticipated to improve revenues for investment banks and brokers. Consequently, revenue is set to rise by 6.0% in the current year.The industry is highly regulated and in the declining phase of its economic life cycle. The industry is also characterised by low market share concentration. Investment banks charge a premium for specialised services like listing valuations and regulatory compliance filings. Several high-value IPOs occurred before the COVID-19 outbreak, including spin-offs of businesses like Coles and Viva Energy from Wesfarmers and Vitol. High-value M&A activity also occurred during the same time, like Asahi's acquisition of Carlton United Brewery and Coca-Cola European Partners' acquisition of Coca-Cola Amatil. Although absolute trade volumes have increased, higher compliance costs and growing process automation have forced many brokers to seek alternate revenue streams.Trading conditions are anticipated to remain challenging before inflationary pressures stabilise to acceptable levels. Sharemarket trade numbers are forecast to increase significantly over the next five years. This trend will likely offset forecast declines in commission fees over the period. Competition in the brokerage market is forecast to intensify, with online brokers likely to improve their market knowledge through partnerships with larger investment banks. New technologies are projected to continue altering brokerage firm operations, with more retail clients placing trades through online channels. Overall, industry revenue is forecast to grow at an annualised 2.9% over the five years through 2028-29 to total $7.4 billion.
Trends and Insights
- Inflationary pressures and related cash rate hikes saw trade volumes plummet dramatically in 2022-23. Higher costs and negative business confidence warded off many investors from engaging in trading. This has meant lower fees for banks and brokers.
- Investment banking services include advice related to merger and acquisition (M&A) activity, underwriting debt and equity products in private placements and public offerings, and other corporate activities. Brokers settle transactions on behalf of their clients, like buying and selling securities.
- Most invest banking and stockbroking businesses set up shop in financial hubs, like Sydney and Melbourne. Consequently, New South Wales and Victoria combined account for just under 70% of establishments.
- There is low concentration among investment bankers and stockbrokers. Boutique firms can appeal to a range of corporate and retail clients due to the perception of enhanced quality of service.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 2.7 % over the past five years, to reach an estimated $6.4bn in 2023.
Trends and Insights
Dampened financial market activity has limited avenues for income generation for investment banks and brokers
- Inflationary pressures and related interest rate hikes saw the number of stock market trades plummet in 2022-23.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Unfavourable macro-economic conditions are slated to continue hounding the industry over the short-term
- The potential for further interest rate rises and wider global market volatility are projected to limit incomes for firms.
Biggest companies in the Investment Banking and Securities Brokerage in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Macquarie | 980.0 | |
UBS Holdings | 757.0 | |
Citigroup Global Markets | 320.0 |
To view the market share and analysis for all 6 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Brokerage services, M&A services and Capital-raising services. Brokerage services is the largest segment of the Investment Banking and Securities Brokerage in Australia.
Trends and Insights
The appeal of online brokers has placed pressure on brokerage services fees charged
- Investment banks and stockbrokers execute trades on formal exchanges for clients. Brokers charge commission on the dollar value of trades.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Custody, Trustee and Stock Exchange Services in Australia
- Mortgage Brokers in Australia
- Funds Management Services in Australia
- Financial Planning and Investment Advice in Australia
International industries
- Global Investment Banking & Brokerage
- Investment Banking & Securities Dealing in the US
- Securities Brokering in the US
- Investment Banking & Securities Intermediation in the US
- Merchant Banking Services in the US
Table of Contents
About this industry
Industry definition
Industry operators provide investment banking and brokerage services. Brokerage services include trading stocks, shares or other financial assets on a commission or transaction fee basis. Investment banking services include corporate finance and advisory services, underwriting and principal trading.
What's included in this industry?
Brokerage servicesM&A servicesCapital-raising servicesCompanies
MacquarieUBS HoldingsCitigroup Global MarketsPurchase this report to view all 6 major companies in this industry.
Related Terms
INITIAL PUBLIC OFFERING (IPO)EQUITY CAPITAL MARKETSPROPRIETARY TRADINGDARK POOLMARGIN LENDINGMIDDLE MARKET (MID-MARKET)Industry Code
ANZSIC 6411 - Investment Banking and Securities Brokerage in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Inflationary pressures and related cash rate hikes saw trade volumes plummet dramatically in 2022-23. Higher costs and negative business confidence warded off many investors ...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Investment banking services include advice related to merger and acquisition (M&A) activity, underwriting debt and equity products in private placements and public offerings, ...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Most invest banking and stockbroking businesses set up shop in financial hubs, like Sydney and Melbourne. Consequently, New South Wales and Victoria combined account for just...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
There is low concentration among investment bankers and stockbrokers. Boutique firms can appeal to a range of corporate and retail clients due to the perception of enhanced q...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Global investment banks like Goldman Sachs, and Citigroup operate in Australia. A depreciation of the Australian dollar has benefited foreign buyer activity in Australia's mi...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Macquarie's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of UBS Holdings's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Citigroup Global Markets's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for 3 additional companies
Detailed analysis
- Description and key data for Macquarie, and factors influencing its performance in the industry
- Description and key data for UBS Holdings, and factors influencing its performance in the industry
- Description and key data for Citigroup Global Markets, and factors influencing its performance in the industry
- Description, key data and performance trends for 3 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The industry is heavily regulated by pieces of numerous legislation and institutional bodies. For example, the Corporations Act and ASIC govern the ASX and its members. On to...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Most Investing banking or broking businesses are labour-intensive, although cost structures vary between investment banks and securities brokers. Cost structures can also dif...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Investment Banking and Securities Brokerage industry in Australia in 2024?
The market size of the Investment Banking and Securities Brokerage industry in Australia is $6.4bn in 2024.
How many businesses are there in the Investment Banking and Securities Brokerage in Australia industry in 2023?
There are 216 businesses in the Investment Banking and Securities Brokerage industry in Australia, which has grown at a CAGR of 0.8 % between 2018 and 2023.
Has the Investment Banking and Securities Brokerage industry in Australia grown or declined over the past 5 years?
The market size of the Investment Banking and Securities Brokerage industry in Australia has been declining at a CAGR of 2.7 % between 2018 and 2023.
What is the forecast growth of the Investment Banking and Securities Brokerage industry in Australia over the next 5 years?
Over the next five years, the Investment Banking and Securities Brokerage industry in Australia is expected to grow.
What are the biggest companies in the Investment Banking and Securities Brokerage market in Australia?
The biggest companies operating in the Investment Banking and Securities Brokerage market in Australia are Macquarie, UBS Holdings and Citigroup Global Markets
What does the Investment Banking and Securities Brokerage in Australia include?
Brokerage services and M&A services are part of the Investment Banking and Securities Brokerage industry.
Which companies have the highest market share in the Investment Banking and Securities Brokerage in Australia?
The company holding the most market share in Australia is Macquarie.
How competitive is the Investment Banking and Securities Brokerage industry in Australia?
The level of competition is high and increasing in the Investment Banking and Securities Brokerage industry in Australia.
