London investment bankers earn over £1bn in takeover fees

The Guardian reported that professionals in London’s financial and legal sectors collected in excess of £1bn in fees from merger and acquisition work during 2026. The surge in fees reflects a sharp increase in the value of UK‑listed‑company deals, which the London Stock Exchange said grew 175% to $132.9bn, or about £100bn.

Deal volume fuels fee growth

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Bankers at JP Morgan topped the advisory rankings, handling 14 transactions that together were valued at $89.4bn, roughly £67.6bn, according to LSE data cited by the Guardian. The firm’s activity outstripped all other banks in the city for the year.

Financial brokers were paid huge sums while the people who keep this country moving struggle to make ends meet.

Charlotte Brumpton-Childs, national secretary, GMB union

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The most lucrative single transaction was the £10.6bn purchase of testing group Intertek by private‑equity firm EQT. The Guardian noted that the deal is expected to generate more than £370m in advisory fees, with Morgan Stanley, Barclays and Deutsche Bank advising EQT, while Intertek retained Goldman Sachs, JP Morgan Cazenove and PJT Partners.

Industry response and public concern

Union leaders quoted in the Guardian warned that the fee boom occurs while many households face a cost‑of‑living squeeze. Paul Nowak, general secretary of the Trades Union Congress, called for a windfall tax on banks, arguing that high payouts for senior staff indicate capacity to contribute more to public finances.

The fee surge also coincides with the removal of a bonus‑cap rule in 2023, allowing banks to set their own limits. The Guardian reported that some banks now permit bonuses up to 25 times base salary, further inflating earnings for top dealmakers.

Analysts cited in the article cautioned that while advisory income is rising, other revenue streams such as sell‑side research may decline as fewer companies list in London. The Guardian noted only seven listings in the first half of the year, raising £577m in total.

The next step for regulators could involve reviewing the bonus framework or considering additional taxation on financial‑sector profits, though no formal proposals have been announced as of the date of reporting.