And HSBC CEO warns of lower profitability for banks in 2017.
According to Reuters, Deutsche Bank will slash bonuses for senior employees including investment banker in London and New York by about 90%, Spiegel reported, without citing the source of the information. Read more here.
In another report, Reuters revealed that Morgan Stanley laid off a number of senior investment bankers last week and cut bonuses by roughly 15% because of a decline in revenue from dealmaking and capital raising across Wall Street. Read the full story here.
Bloomberg cites a survey by New-York based recruiter Options Group Inc. that says among regional financial-services managers, 40% say they expect to increase their headcount for information technology-related roles this year. By comparison, only 18% of the 380 managers surveyed intended to add jobs in investment banking, while 29% may do so in fixed income and equities sales and trading. Read more here.
Investors need to lower their expectations for bank profitability, as a 10% return on equity is probably as good as large universal lenders can do, according to the chief executive officer of Europe’s biggest bank. Read more from Bloomberg here.
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