Numis, the traditionally city-focused investment bank, is preparing to compete with bigger rivals in mainland Europe after opening its post-Brexit office in Dublin.
The investment bank has hired traders, sales staff and compliance expertise as it builds a team of up to 15 people in the Irish capital, after opening the doors to its new operation in the European Union at the end of August.
“We see this as an opportunity to push harder in Europe on all fronts, from institutional investors to issuers and corporates across the continent,” said Numis co-CEO Ross Mitchinson. Financial News. “After Brexit, we found ourselves in a position where we couldn’t talk so easily to European customers, and now we can.”
Numis has attempted to diversify away from its historic role as the city’s largest broker, entering more areas of investment banking and hiring traders in its 300-person London office in recent years. According to Adviser Rankings, it has 176 corporate clients in the UK, the most of any investment bank, including JPMorgan, which has 157, and far more than its rivals.
Numis has assembled its management team in Ireland, having installed former Goodbody chief commercial officer Garret Ward as chief executive and Michael Byrne as chief financial officer earlier this year. Meanwhile, dealmaker Matthew O’Dowd will be moving from London to Dublin, and more banker hires are on the way, Mitchinson said.
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European regulators have cracked down on banks supposedly brass-plating their operations in the European Union following Britain’s official departure from the bloc last year.
Banks are unable to access customers on the mainland without dedicated resources in the region, with regulators cracking down on various loopholes, including so-called chaperoning, the practice in which an EU colleague attends calls which are actually run from the UK. As a result, companies have been forced to recruit staff, and a major European Central Bank review of European banking hubs in May found that 56 trading desks – a fifth of those examined – warranted targeted surveillance action. .
City-focused businesses also began to expand beyond the UK. Numis rival Peel Hunt is set to open an office in Copenhagen, says chief executive Steven Fine FN previously that the broker intends to put “boots on the ground” in the new office.
Numis is generally dependent on revenue from the equity capital markets business, which has been falling so far in 2022. In the first half of 2022, capital markets revenue at Numis fell 61% to 24, £7m as overall transaction fees fell 41.4%. as increased revenues from mergers and acquisitions helped to catch up some of the lag.
Last year, transaction fees from non-UK clients accounted for 18% of overall investment banking revenue at Numis, and Mitchinson said the bank aims to increase that proportion through mergers and acquisitions, capital markets activities and fundraising with private companies through its growth capital solutions. unity.
“Some people have misinterpreted our Dublin office as an attempt to generate more business in Ireland and eat the lunch of local brokers,” Mitchinson said. “But we already have a number of Irish corporate clients. The aim is to use Dublin as a bridgehead to develop our business across Europe.”
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