The investment bankers in London are rather pessimistic about their bonus for next year. At UBS however most expect to get a higher bonus.
In two months time, the bonus seasons is upon us once again. Investment banking had a rather turbulent 2019, which makes it less-than-surprising that expectations aren’t running high.
In London, Europe's investment banking hub, staff at European firms on average expect to get 2.6 percent less in bonus than this year. The U.K.-based careers portal «Emolument» surveyed investment-banking staff in the rank of director.
Their colleagues at U.S. banks based in London were decidedly more optimistic about their bonus check, expecting an increase of 14 percent on average.
Optimistic Majority
The ranking of the banks displays huge differences in expectations (see table below). Three out of four bankers at BNP Paribas and 95 percent of employees at Société Générale expect to get more next year, despite the cost cuts enacted in 2019.
UBS Staff Remains Hopeful
At UBS, 67 percent of bankers expect to get a higher bonus. Switzerland’s largest bank had a big drop in profit in the first quarter, a fine second quarter, followed by a third quarter that was better-than-expected but weaker than the bank had hoped. The investment bank reported lower revenues for all business units.
No Bonus?
The survey revealed that 14 percent of the UBS investment bankers based in London expect to get no bonus at all in 2020. Only Deutsche Bank staff and HSBC bankers were even less optimistic, with 17 and 22 percent respectively expecting no bonus.
The latter two in 2019 announced the elimination of tens of thousands of jobs – making the depressing 14 percent a rather sobering reading for UBS.
