Which of the Big Four accounting firms pays the best? The truth is, it’s not always clear. Much like the top tier banks, PwC, Deloitte, EY and KPMG are all competing against one another for talent. And much like top tier banks, their pay can be very similar for similar roles, especially in the junior ranks.
If you make it to partner level in the Big Four, there's a clearer hierarchy, with Deloitte leading the charge. In 2018/19 partners at Deloitte got paid an annual salary of £882k ($1.5m), PWC partners got £765k ($1m) each, partners at EY got £679k and partners at KPMG (which is cutting costs) got £640k. While that's not exactly on a par with the amount investment banks pay their top staff (their 'material risk takers'), it's not bad, either.
There are plenty of bad-sounding rumours about the Deutsche Bank bonus pool; the bank’s going to be announcing its biggest loss since 2015 this year (albeit mainly driven by restructuring charges and goodwill writedowns rather than operational performance). And since DB has been given permission from the regulators to run down capital levels as a result of these charges, it would be awkward to say the least if the capital was further eroded by big payments to employees. So, anyone getting any more than a token bonus can probably count themselves to have been a star. But this leaves an awkward and painful dilemma for Christian Sewing – what about the management board itself? If anyone gets zeroed this year, it should surely be management board members.
It won't be the first time. The Deutsche management board got their first bonuses in five years last year. According to “people with knowledge of the matter”, the options under...
HSBC didn't comment on Wallace's departure, which is thought to be being announced internally this afternoon.
The reason for Wallace's exit is unclear. Insiders suggested it may not actually be related to the strategy shakeup being implemented by interim CEO Noel Quinn.
Wallace joined HSBC from Credit Suisse in 2011 and was initially global head of the resources and energy group. He was promoted to head of global banking for Europe in September 2018. Wallace spent nearly 12 years at Credit Suisse after beginning his career at Kleinwort Benson.
In 2019 HSBC ranked 10th in Europe for investment banking revenues, up from 11th one year previously. HSBC is strongest in debt capital markets, where it ranked 5th in EMEA in 2019. It ranked outside the top 10 in M&A and equity capital markets.
HSBC's global banking business has been through various changes in recent years. Ex-Goldman Sachs banker Matthew Westerman joined as co-head of global...
If you're a developer in JPMorgan's corporate and investment bank (CIB), you may be feeling a little apprehensive today. Insiders say the bank is trialling a partnership with BlueOptima, a third party company that measures the efficiency of 'software resources.'
JPMorgan declined to comment on the pilot project, which insiders say was announced internally in a memo from head of CIB technology Mike Grimaldi this week. "It will deliver management metrics around individual developer productivity and contributions," says one JPM insider. "There's a very lively debate around it on our internal Symphony chatroom."
Dealmakers at Rothschild and Lazard in Germany have eclipsed their US rivals by landing top spots in the European M&A rankings.
Dirk Pahlke, head of M&A German-speaking countries at Rothschild & Co worked on four deals with a combined value of €17.366bn in 2019, making him the most prolific Frankfurt-based M&A rainmaker in 2019. Pahlke’s whose deals included advising Scout24 on the €2.8bn sale of AutoScout24 to Hellman & Friedman, just squeezed past Ken Oliver Fritz, who is head of investment banking for Germany at arch-rival Lazard, to claim top spot.
Goldman is making a push to move away from Slang as the language of SecDB. This has been underway for a few years, with technologists asked to code 'Java wrappers' to act as a Slang interface, but it's now being taken to a different level.
Goldman is currently advertising around 11 roles for C++ and Java engineers in Bengalaru, London and Singapore to work on a "rapidly expanding team" tasked with updating the SecDB platform for the next five to ten years. As Goldman embraces Amazon Web Services and aspires to become the finance industry's lead provider of Application Programming Interfaces (APIs), the growing team is tasked with, "migrating services from the proprietary platform to modern solutions for scalable microservices architecture."
There's no mention of Slang in the job specification. However, there is mention of "20-year old code to refactor" and to "uplift into the new century." That's Slang right there.
If you work for a U.S. investment bank, you should already have the measure of your bonus for 2019. JPMorgan announced today and most other U.S. banks announced late last week.
So, how were they? As ever, it depends upon who you speak to and where they work. As a rule of thumb, however, credit bonuses seem to have been best, equities bonuses seem to have been worst, macro bonuses were sort of ok and investment banking division bonuses were flat - if you were lucky.
If you’re thinking about the ideal location to work for Google Cloud in Asia, Google’s sprawling APAC headquarters in suburban Singapore probably springs immediately to mind. The tech firm has 21 Singapore-based cloud jobs on its career site right now, many of them with regional responsibilities.
As bonus payout season approaches, what does a successful female banker, trader, analyst or even compliance officer do who fears they have been paid less than their male counterparts?
I worked on the important Louise Barton discrimination case some 7 years ago where the complainant faced the same dilemma.
Nomura is primarily looking for senior relationship managers with big books of clients as it pushes to boost its private banking headcount and assets under management (AUM) in Singapore and Hong Kong.
When you think about the kinds of roles that are there in investment banking for computer programmers, it’s usually either artificial intelligence data quants that come to mind, or else optimisers of millisecond-critical trading platforms. The design of user interfaces feels more like a retail banking field to be in – it’s nice to have a slick front end, but not something that’s going to make a big difference to the P&L.
People who have been around the block a few times, though, eventually begin to learn that this isn’t true. The greatest trading system in the world is only any good if people use it. And when faced with a system that’s confusing to use, or poorly laid out, or slow to update, investment bankers of all kinds tend to rebel. They either form a deputation to get the old “legacy” system restored, or even worse, they go back to Excel spreadsheets and paper notebooks. A great deal of the wasted IT...
M&A, Sales and Trading oder Research: Hart gearbeitet wird überall. Vielleicht müssen Sie auch einen Dolchstoß von Kollegen in ihren Rücken fürchten, Kunden legen bei Ihren Anrufen sofort den Telefonhörer auf oder stornieren einen Auftrag und Ihr Vorgesetzter bringt Sie zur Verzweiflung oder wirft Sie sogar vor den Bus.
So etwas sollte Sie weder ins Schwitzen bringen, noch entmutigen. Es handelt sich einfach um die Natur des Spiels – und nicht etwa um Ihren Fehler.
If you aspire to get a job at Goldman Sachs, now may well be the time to apply. Analysis by Thinknum Alternative Data shows that Goldman Sachs is in the middle of a hiring spree that began early last summer. Vacancies at the bank are up nearly 30% on last year.
Thinknum's chart showing the evolution of Goldman's vacancy numbers since early 2018 is shown at the bottom of this page. Monitoring the number of vacancies advertised on Goldman's own careers pages, Thinknum detected a dramatic dip in hiring between April 2018 and April 2019. This was reversed last May and - December excepted -Goldman's recruitment has been roaring ever since.
U.S. banks' bonuses haven't actually been paid yet, and the resulting 'rush' of hiring hasn't been unleashed - but banks are already stocking up on the sorts of people who are top of their recruitment lists for 2020.
Bank of America, Goldman Sachs and Morgan Stanley have all made big hires in the technology and digital space in the past few weeks. The new recruits set the tone for the year to come.
The Swiss bank employed 1,041 client advisors (its name for private bankers/relationship managers) in Asia at the end of December last year, compared with 1,138 a year previously, according to its fourth quarter results, which were announced today. UBS still has the largest front-office workforce in Asian private banking by a big margin, but this 9% fall runs counter to a long-standing trend of aggressive hiring by banks in the wealth sector.
UBS declined to comment on the headcount decline, but we understand it was driven by layoffs of underperformers and by natural attrition as banks such as Julius Baer and HSBC stepped up their hiring. “I always see UBS private bankers in the job market,” says former Merrill Lynch private banker Rahul Sen, now a global leader in private wealth management at search firm Boyden. “Bankers who want more geographic flexibility in their market coverage aren’t suited there,” he adds.
Whatever the reasons for private...
Nachdem die US-amerikanische Investmentbanken ihre Ergebnisse für das vierte Quartal und das Gesamtjahr 2019 vorgelegt haben, gibt es nun Anhaltspunkte dafür, was europäische Banken in den nächsten Tagen und Wochen berichten dürften. Mit der europäischen Bankenlandschaft befassen sich auch Analysten bei der Deutschen Bank. In ihrem neuaufgelegten „Capital Markets Pulse“ zeigen die Analysten, wo man bei der Konkurrenz am besten arbeiten sollte, und wo besser nicht.
Angesichts der Q4-Ergebnisse der US-Banken, mutmaßen die Deutsche-Bank-Analysten, dass SocGen schlecht wegkommen dürfte, wenn am 6. Februar Zahlen vorlegt werden. Grund: Die französische Bank ist stark engagiert im Handel mit Aktienderivaten – und genau auf diesem Geschäftsfeld hatten die meisten US-Banken im vierten Quartal Schwierigkeiten.
There were some rousing soundbites when UBS announced its fourth quarter results for 2019 this morning. Across the bank, profit before tax in the fourth quarter was at its highest level since 2010. Many hundreds of 'robots' have been deployed globally. A revenue line in global wealth management is growing at a compound annual rate of 15%. Behind the curtain, however, UBS's investment bankers and traders are looking enfeebled.
Revenues in UBS's investment bank fell 10% last year. Profits fell 37%. Costs rose to nearly 89% of revenues, compared to a group target of 75% to 78%. The investment bank's return on attributed equity, which averaged 13.9% between 2013 and 2019 fell 44% in 12 months to just 6.4%. And, as the chart below shows, UBS didn't get to attend U.S. banks' fixed income trading revenue party, seriously underperformed in primary debt and equity markets, and didn't really make amends in equities trading and M&A.
If you're trying and failing to get a job in an investment bank when you graduate from university, the new report from graduate market intelligence company High Fliers helps explain why. Every year, banks hire fewer and fewer people.
In 2020, High Fliers says investment banks in the UK now plan to hire 1,658 graduate trainees, a reduction of nearly 3% (or 47 people) on 2019.
Wall Street Oasis' figures for average working hours per bank are shown in the chart below. They reflect submissions from thousands of users and have not been validated by the banks concerned. WSO says working hours are significantly longer at boutique M&A firms like Perella Weinberg, Moelis & Co and Evercore than at French banks like Credit Agricole, Natixis and SocGen.
Hours are typically around the average for European investment banks, and slightly above the average for U.S. investment banks - although JPMorgan is an anomaly.
The second chart below shows the evolution of average working hours per bank (based on WSO figures) since 2017. Althouh average hours at many banks have fallen, at some large U.S. banks they appear to have been creeping up again in recent years. If you're looking at this chart on a mobile we suggest you save it for a desktop due to problems with our chart formatting tool.
If you work in an investment banking division on M&A deals for a major investment bank, you can expect to put in long hours. As we reported yesterday, the average across 33 major institutions is 73 hours a week - more at boutique firms with fewer employees.
There's some debate, however, as to whether this kind of hard grind continues throughout your career or stops when you make managing director and switch to overseeing the execution of M&A deals and originating new ones, instead of staying up all night working on the minutiae of pitchbooks and financial models. Recent attempts to track the activities of senior M&A bankers as they fly around the world meeting clients (HSBC), or to specify a minimum number of meetings that bankers must have (UBS) suggest doubts as to what senior bankers are really up to when they leave the office.
The kids are alright. Goldman Sachs has Wajih Ahmed, now aged around 22, who was a child prodigy long before he joined Goldman. And Credit Suisse has Hamza Lemssouguer, a comparatively recent graduate of France's Ecole Polytechnique, who seems to be making all the difference to the Swiss bank's credit trading P&L.
Aged just 29 and having graduated in mathematics from Ecole Polytechnique in 2015, Lemssouguer is now working on Credit Suisse's high yield desk. There Reuters reports that he singlehandedly generated $120m in revenues last year or around 5% of Credit Suisse's total fixed income revenues (based on 2018). Credit Suisse's high yield trading desk is said to have generated $140m in profits in 2019, and Reuters says Lemssouguer was responsible for a 'material' proportion of this.
It turns out that Barclays didn't just purge long-serving managing directors in equities sales and trading last week. Sources say that various senior names in macro sales and trading were cut too.
The exits in London are understood to include James Neale, head of UK real money FX sales, who is said to have left on Friday. Barclays isn't commenting on the exits, but a colleague confirmed Neale's disappearance.
Python programmers are in hot demand in banks and hedge funds. Fortunately the language is easy to learn – it’s often used in UK primary schools to teach the basics of programming. However, before your first encounter with Python there are a few things you should know - particularly if you want to use it in a finance context.
Now that U.S. investment banks have reported their results for the fourth quarter and full year of 2019, we have a better idea what to expect when European banks report in the days and weeks to come. Accordingly, Deutsche Bank's European banking analysts have issued an updated 'Capital Markets Pulse' with their verdict on rival European banks and the best and worst places to sit in all banks right now.
In light of U.S. banks' fourth quarters, Deutsche's analysts suggest SocGen might be a bad place to be when it reports on February 6th. This is because the French bank is highly exposed to equity derivatives trading, a business where most U.S. banks struggled in Q4.
So, JPMorgan won't be moving into the Hotel De La Marine on Place de la Concorde after all. Bloomberg reports that the U.S. bank has instead purchased BNP Paribas's former Paris office at 21 Place du Marché Saint-Honoré in the 1er arrondissement, close to the Louvre.
The new building marks an apparent change of heart for JPMorgan. The bank was previously said to be holding out for the Hotel De La Marine, which is being refurbished and won't be available until the coming spring. Some employees at the bank in Paris complained to eFinancialCareers previously that they were working from temporary offices on the outskirts of the French capital.
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