Banks in Asia slash bonuses by 30%

If you’re an equities or fixed income trader at a global bank in Hong Kong or Singapore, you’ll probably want to forget Q4 2018. Not so fast. The fourth quarter, which was generally dire for trading revenues, continues to cast a shadow over the current job market. Bonuses are down for traders, hiring is subdued, and the threat of redundancies still looms, say recruiters.

Credit Suisse provides an extreme example of the Q4 decline. APAC fixed-income sales and trading revenues at the bank decreased 91% year on year, while equities revenues fell 28%. The Swiss bank was not the only firm to suffer as Asian markets tanked.

At HSBC, which generates most of its profits from Asia, markets revenues fell 7% in 2018, with much of the decline happening in an “extraordinarily weak” fourth quarter, CEO John Flint told analysts last month, adding that Hong Kong had endured “particularly weak” equities markets. Another Asia-focused bank, DBS, reported “unfavourable market conditions” in Q4, as profits in its Treasury Markets unit slumped 68% for 2018. In OCBC’s Global Treasury division, profits fell 23% in Q4 versus Q3.

https://news.efinancialcareers.com/sg-en/3000324/banks-asia-slash-bonuses-30-percent