Investment bankers at global banks in Asia will see lower bonuses this year due to a slump in dealmaking in the region.
The bonus pool at UBS’ investment banking unit is 14 percent lower than 2019 for Asia ex-Japan, and 9 percent lower at Morgan Stanley.
At Citi the decline was lower, at 6 percent, while Goldman Sachs kept overall bonuses flat, the report, which cited unnamed sources, said.-
According to the publication, slowing economic growth in China, which reached a 30-year low in 2019, was partly behind the slump in dealmaking, with the value of mergers falling 9 percent. Fee compression was also cited as a factor behind the lower bonuses.
UBS, which is undergoing a global revamp of its business, took a hit as it was suspended from sponsoring IPOs in Hong Kong. The ban was lifted two months early in January.
Following a record year in 2018, Morgan Stanley’s overall investment banking revenue declined about 12 percent, and its Asia bonus pool was cut after lower merger and acquisition fees, a source said.