The Global investment banks' fee income fell by nearly 25% in the second quarter, which is the most dismal performance since early 2009, mainly backed by eurozone crisis and reduced merger activity.
According to a report compiled by Thomson Reuters, the total banking fees amounted to approximately $14bn in the second quarter, with a decline of over $18bn during the first quarter of 2012.
The report also highlights that the year to date fees have summed up to $32bn, with a fall of 25% from the same period in 2011.
The wide spread dullness in the market activities in Europe has stalled the new listings of the firms in the region almost completely.
JPMorgan global head of equity capital markets Viswas Raghavan was quoted by the Reuters as saying, "Early signs were good, but while the U.S. market has remained robust, sentiment in Europe has given way to worries over the world economy and the euro zone."
The report highlighted that the weak fee income will hurt second quarter income for major investment banks.
The report reveals that bond and stock trading revenues has declined 12% from an already difficult second quarter last year, while trading revenues would be down close to 40% compared with the first quarter.
According to Industry sources, the decline in investment income will adversely affect the biggest lenders including JP Morgan, Goldman Sachs, Citi Group among others.