Bloomberg Television - Barclays Annual Bonuses Could Rise as Much as 20%
This year, traders in equity and debt capital markets are anticipating bonuses between 5% to 20%, a significant increase from previous years when bonuses were down due to a dry spell in dealmaking. Last year, bonuses were down 43%, and the year before, they were down 8%. However, this year is looking promising for investment banks, particularly Barclays, which has seen improved performance due to cost-cutting measures led by CEO Venkat. Barclays has been pursuing a $2 billion cost-cutting drive, which included layoffs, but by Q3, advising revenue more than doubled, and traders in fixed income and equities exceeded expectations. This positive trend is not just limited to Barclays; Wall Street and European investment banks are also expecting higher bonuses, with some estimates suggesting increases of 24% to 35% in capital markets.
Key Points:
- Traders expect bonuses between 5% to 20% this year, a significant increase from last year's downturn.
- Barclays has improved performance through a $2 billion cost-cutting drive, leading to higher revenues.
- Investment banks, including Barclays, are seeing better results in fixed income and equities trading.
- Wall Street and European banks are also anticipating higher bonuses, with potential increases of 24% to 35%.
- The positive trend in bonuses is attributed to improved market conditions and strategic cost management.