An increase of 12 per cent was seen in global investment banking revenue last year.
According to a study from International Financial Services London, investment banking fees revenue rose to $66.3 billion (£42.3 billion) in 2009 due to recovery in equity markets and trading volumes.
Compared to record fees reported in 2007's investment banking, last year's figure was down by more than a fifth.
The report said: "The UK is the source of around a quarter of European fee revenue, and about a half of European investment banking activity is conducted through London."
Investment banks' business last year was made up of equity underwriting, fixed income and mergers and acquisitions advisory work, the study from the British finance industry lobbying group discovered.
Europe made up 38 per cent of last year's total investment banking revenue, with the US accounting for 46 per cent.
According to Stephen Hester, Royal Bank of Scotland's (RBS) chief executive, the bank's return from part-nationalisation to the private sector would be influenced by the profitability of the organisation's investment banking arm.
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