Numis warns of lower deal volumes in ‘deteriorating’ market backdrop

Receive free Numis Corp PLC updates

Investment bank Numis has warned that market conditions are deteriorating, with economic worries pushing down deal volumes, especially in the initial public offerings market.

In a trading update ahead of its acquisition by Deutsche Bank this year, UK-based Numis said revenues in the three months to the end of June were weaker than they had been in the previous six months, “reflecting a deteriorating market backdrop across the investment banking industry”.

“Macro-economic concerns have resulted in a prolonged period of exceptionally low deal volumes across the market and the effective closure of the IPO market,” the company said on Wednesday.

The comments suggested the tough conditions endured by investment banks in the first half of the year would continue into the second.

Deutsche Bank’s acquisition of Numis is due to complete in the final quarter of this year.