By Sarah Butcher | eFinancial Careers
Despite everything that happened last year, investment banks had a strong end to 2020. In a report out today, banking analysts at KBW point out that the KBW bank index rose 34% in the fourth quarter versus a 12% rise in the S&P 500. Fixed income sales and trading revenues were at record highs; so too were revenues in investment banking divisions. All things being equal, there should be some hiring at least in 2021.
Where will that hiring happen? Without getting too far into the realms of speculation, it’s worth noting that some banks have already flagged precisely where they plan to recruit this year, and that in some cases this recruitment is already underway. It’s also a fair assumption that there will be some movement after this year’s challenging bonus round. – KBW’s analysts are predicting, for example, that Goldman will squeeze compensation for 2020 to just 28.5% of revenues as it boosts its bottom line; this could come as a shock to Goldman traders and bankers who are expecting their bonuses to rise by up to 20%.
Which kind hiring is a sure-thing for 2021? Digital sales and digital transformation will be towards the top of the list. – JPMorgan already released a handful of new digital roles in New York City and a role for a digital product manager for FICC sales in London. Sustainability is also a sure-thing; Morgan Stanley is advertising for a technologist to work on ESG data in its investment management division. Compliance surveillance and monitoring will also remain a priority with staff still working from home – Goldman Sachs still has vacancies in its compliance surveillance and monitoring team on both sides of the Atlantic.
In terms of the front office, though, the most assured recruitment is the European banks that outlined their exact intentions in December. And at the U.S. bank that has just announced its intention of expanding its investment banking capabilities.