LONDON, Feb 25 (Reuters) - Global investment banking fees hit a record $84.3 billion in 2007, helping offset the losses many banks suffered on business related to high-risk U.S. home loans, a London financial services body said on Monday.

Half of the fees, which were up 21 percent on 2006, came from merger and acquisition advisory, with the rest earned through equity and fixed income underwriting, said International Financial Services London (IFSL).

More than half of total investment banking fees were generated in the U.S. market and just over a third in Europe, Middle East and Africa.

Investment banks reported losses of $130 billion on their exposure to U.S. subprime mortgages up to the end of January, IFSL said.

“Many investment banks are likely to experience further losses in 2008 on their investments in assets backed by subprime mortgages,” the industry body said in its banking report. (Reporting by Olesya Dmitracova; Editing by David Holmes)