DBS leads as Singapore investment banking fees hit 4-year high in 2025 amid M&A rebound

SINGAPORE - Investment banking activity in Singapore surged in 2025, driven by a sharp recovery in merger and acquisition (M&A) advisory and strong performances in capital markets businesses, even as syndicated lending slumped.

Investment banking fees rose 28.9 per cent in 2025 from a year ago to reach US$864.6 million (S$1.1 billion), the highest annual total since 2021, according to the London Stock Exchange Group’s (LSEG) Deals Intelligence team.

Advisory fees from completed M&A transactions amounted to US$265.1 million, up 55.3 per cent from 2024. 

Equity capital markets (ECM) underwriting fees more than doubled to US$210.9 million, the strongest showing since 2021. 

Debt capital markets fees also recorded a historic jump of 55.9 per cent to US$155.2 million, marking the highest level on record. 

By contrast, syndicated lending fees fell 24.1 per cent to US$233.4 million.

Home-grown DBS Group retained its position as Singapore’s leading investment bank, generating US$72.9 million in fees to capture an 8.4 per cent market share of the total fee pool.

Despite the robust fee performance, overall M&A activity involving Singapore slowed. The total value of deals reached US$70.4 billion in 2025, down 9.1 per cent from 2024. The number of announced transactions fell 22.1 per cent to a 10-year low.

At least fifteen deals worth over US$1 billion were announced in 2025, with a combined value of US$27.8 billion, though activity tapered off towards the end of the year as only one mega-deal was unveiled in the fourth quarter.

Deals targeting Singapore companies rose 8.4 per cent to US$26.9 billion, underpinned by foreign investor interest.

Inbound M&A activity, where a foreign company buys a local one, jumped 16 per cent to US$19.2 billion. Domestic M&A activity slipped 6.7 per cent to US$7.8 billion.

Outbound M&A, where a Singapore company targets a foreign one, fell 7.2 per cent to US$22.6 billion, the lowest level in a decade.

From a sector perspective, energy and power was the most targeted industry, accounting for 17.4 per cent of the total deal value at US$12.2 billion, roughly double the level in 2024.

Real estate ranked second with US$10.3 billion, down 4.2 per cent from 2024. High technology followed closely with US$9.8 billion, up 37.6 per cent from the preceding year.

Swiss banking giant UBS topped the league table for M&A transactions involving Singapore, advising on deals worth US$8.3 billion and taking an 11.8 per cent market share.

Singapore’s equity capital markets slowed in the final quarter of 2025, raising US$1.7 billion, a 33.2 per cent decline from the previous three months.

Despite the lost momentum in the fourth quarter, total ECM proceeds in 2025 reached US$7.4 billion, more than double the amount raised during 2024 and the best annual total since 2021. The number of issues also rose by 66.7 per cent compared to 2024.

A total of 38 initial public offerings (IPOs) by Singaporean companies were issued in 2025, raising US$2.5 billion.

Of these, 27 IPOs were listed offshore – two in Hong Kong and 25 in the United States – raising a combined US$662.1 million. Eleven issuers chose to list on the Singapore Exchange, generating US$1.9 billion in proceeds.

Real estate players were the biggest contributors to ECM volumes, accounting for 42.7 per cent of proceeds, or US$3.2 billion, aided by capital raisings from listed real estate investment trusts. The high technology sector followed, securing a 33.2 per cent share worth US$2.5 billion, while healthcare issuers contributed 10.4 per cent of total proceeds.

DBS Group secured the top spot in Singapore’s domestic equity and equity-linked underwriting league table for 2025, with US$983.6 million in related proceeds.

Singapore’s debt capital markets staged a strong performance in 2025, with total bond issuance by local entities reaching US$41.3 billion. This is up 30.5 per cent from 2024 and the second-highest annual total since records began in 1980.

Financial institutions dominated activity, capturing 64.8 per cent of the market and raising US$26.7 billion, a 47.5 per cent increase from 2024. This is bolstered by large bank issuances, including several from DBS and United Overseas Bank. 

Government and agencies accounted for 17.4 per cent of the market, with proceeds of US$7.2 billion, down 0.6 per cent from 2024.

Real estate raised US$1.9 billion, a 27.1 per cent growth from 2024.

DBS also topped the Singapore bond underwriting league table, leading with US$5.4 billion in deal proceeds and a 13.2 per cent market share.