Bank bonuses to rise on IPO surge Bonuses at the London arms of major banks are set to rise after UK investment banking fees rose by 12.5pc last year to $4.65bn (£2.83bn) as companies enlisted financial advisers in a flurry of stock market flotations. The rise in fees will be welcome news for the Square Mile's banks, which, over the past few years, have suffered a slump in trading revenues, a series of regulator inquiries and, in some cases, fines for excessive risk-taking. Bankers in equity capital markets (ECM) divisions enjoyed the biggest leap in fees last year. London IPO fees soared by 111pc to $310.5m in 2013, from $147m the year before. The UK IPO market enjoyed a recovery last year, with the London Stock Exchange reporting a six-year high. A total £15.7bn was raised on the LSE last year as 105 businesses listed on the bourse and 15 company IPOs were launched on the main market, according to exchange figures. UK IPO banking fees made up almost half of the total fees pulled in by all European IPO banks. Goldman Sachs remained the UK's top IPO bank, raking in $29.9m for its work on share offerings, while JP Morgan, Deutsche Bank, Bank of America Merrill Lynch and Morgan Stanley made up the top five. Meanwhile, UK bankers in M&A divisions suffered a 14pc drop in fees, from $1.57bn in 2012 to $1.35bn last year, as dealmaking stalled.