Citi says investment banking client revenues in Asia-Pacific in 2025 were the strongest the bank has seen in over a decade, led by record gains from its mergers and acquisitions business.

According to data provider Dealogic, the bank’s investment banking revenues rose 33% from 2024 to US$514 million last year, with cross-border M&A deals leading the surge.

Equity capital markets were another key growth area for Citi amid busy listing activities in Hong Kong and India. During the year, the bank helped Asian clients in raising over US$250 billion from global capital markets.

The bank expects another strong year ahead. “The investment banking pipeline across this region is one of strongest I have seen on record. It’s across all areas really, but M&A is particularly strong,” says Jan Metzger, co-head of investment banking for Japan, Asia North and Australia ( JANA ) and Asia South at Citi.

Kaustubh Kulkarni, co-head of JANA and Asia South IB at Citi, adds: “It’s also a healthy mix across sectors from consumer and healthcare to TMT ( technology, media and telecommunications sector ), and sponsor activity will be a key theme in 2026, and we are well-positioned with recent investments in our sponsor franchise locally and globally.”

Colin Banfield, head of the bank’s Asia M&A franchise, predicts that M&A activity across the entire APAC region will remain robust this year, “driven by a strong pipeline of multinational-led cross-border deals, particularly in the China and India markets, and by a resurgence in financial sponsor buyside and sellside situations”.

He notes that strategic planning by multinational corporations ( MNCs ) remains focused on the region, given its importance as the world’s key growth engine.

Key APAC trends to persist

Over the past 12 months, there has been increased M&A activity from Gulf Cooperation Council ( GCC ) countries into China and other Asian markets, including related financings. Citi expects this trend to continue.

China and Asia will remain critical markets as MNCs pursue growth opportunities in the region, thus ensuring robust cross-border M&A activity, Citi says.

The bank also believes healthcare, TMT, and AI will dominate financing, while Hong Kong’s equity market revival will persist, along with the shift from A-shares to H-shares. One or two international names are also expected to list in Hong Kong.

Other Citi forecasts:

• Sponsor activity will gain increasing importance for Asian investment banking. This financial capacity will be deployed in key transactions, with an anticipated rise in sell-downs.
• Convertible bonds will remain attractive as companies leverage financially advantageous financing opportunities.
• India is poised for another strong year of initial public offers, with fewer deals but larger average sizes. Local demand will continue to anchor transactions, while MNCs will continue monetizing their local Indian businesses.
• Following a record year, Japanese investment banking will continue to feature prominently. Australia is also experiencing vibrant M&A activity.
• Private credit will see further expansion across Asia. While public markets will remain the primary choice, private credit will grow to support increased high-yield Asian issuance.
• Asean equity capital markets will see increased activity, with positive surprises anticipated in deal flow, both locally and internationally.