Wall Street's elite are betting on bigger bonus checks.
Financial sector executives could see as much as a 10 percent boost to their annual bonuses this year after two of the largest US banks on Tuesday reported profits boosted by profitable trading — the type of business that leads directly to a cushy cash base.
That would make it the second straight year of double-digit bonus check bumps.
Last year, the average bonus check rose 15 percent to $164,530, according to New York State Comptroller Thomas DiNapoli.
The bonus predictions come after bigwigs at JPMorgan Chase and Citigroup said that tailwinds in third-quarter markets — even in the relatively weak currency and rates markets — could lead to bigger paychecks across the Street.
"It is the case that if we have a better fourth quarter, and therefore a stronger second half of the year, our expectations for comp will be higher," Marianne Lake, JPMorgan's chief financial officer, said during a conference call after third-quarter results were reported.
The second half's strength is being driven by higher trading, merger and mortgage servicing business, she added.
Citigroup CFO John Gerspach echoed those comments during a later earnings call — saying that profits were being driven by its financial institutions business.
"The big banks are expecting [bonuses] to be 7 to 10 percent higher," Jay Sidhu, chief executive of asset manager Customers Bank, told The Post. "I think they're going to meet the street expectations from that point of view."
Other Wall Street watchers were skeptical at that much of a raise.
"I think it's going to be slightly up to flat, but no way 10 percent," Kate Quinn, a headhunter at DHR International, told The Post.
"Bottom line is that it's been hard to make money in fixed income."
JPMorgan had mixed results for the three months ended Sept. 30, announcing $5.6 billion, or $1.36 per share, in profit.
Analysts were expecting $1.38, according to Thomson Reuters I/B/E/S.
While the profit was slightly lower than expectations, it was a great turnaround from the $400 million loss JPMorgan reported a year ago, when the bank was still negotiating $13 billion in fines and settlements tied to soured mortgage-backed securities.
Citi's adjusted net profit for the third quarter rose to $3.67 billion, or $1.15 — better than the $1.12 Wall street was expecting.
Citi also announced that it would be exiting the retail banking business in 11 countries, including Japan and Egypt.
JPMorgan's stock closed Tuesday down 0.3 percent, to $57.99. Citi rose 3.2 percent to $51.47.
Anda sedang membaca artikel tentang
Financial executives could see up to 10% bonus boost
Dengan url
http://makananrasaenak.blogspot.com/2014/10/financial-executives-could-see-up-to-10.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Financial executives could see up to 10% bonus boost
namun jangan lupa untuk meletakkan link
Financial executives could see up to 10% bonus boost
sebagai sumbernya
0 komentar:
Posting Komentar