Bank of America to cut Asia investment banking jobs: sources

Mon Sep 26, 2016 8:29am EDT
 
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By Saeed Azhar, Anshuman Daga and Sumeet Chatterjee

SINGAPORE/HONG KONG (Reuters) - Bank of America (BAC.N: Quote) is set to cut about two dozen investment banking jobs in Asia, including some top dealmakers, sources told Reuters, as a slowdown forces western banks to cut costs.

The job cut plan comes after Reuters reported on Friday that Goldman Sachs (GS.N: Quote) is planning to cut almost 30 percent of its 300 investment banking jobs in Asia outside Japan, in response to a fall in activity in the region.

Some bankers handling client coverage and deals will be made redundant, starting this week, with cuts expected in Hong Kong, Singapore and Japan, BofA's big centers in Asia, the sources said, adding that the total number has not been finalised.

Bank of America's cuts will account for a small portion of its total Asia corporate and investment banking staff, and are part of an annual cost trimming, one of the sources said.

A Hong Kong-based spokesman for Bank of America, which last year posted a roughly 3 percent drop in its Asia net income, declined to comment. The sources declined to be identified as the information is not public.

The latest cuts in Asia come against the backdrop of a tough dealmaking environment as well as a slowdown in major economies including in China, Hong Kong and Singapore. The banks' business has also been eroded by local competitors.

Bank of America is on track to post higher third quarter revenues in its investment banking business compared to the second quarter, its investment banking head Christian Meissner said at an industry event earlier this month.

However, the bank was gaining market share in most regions except for Asia Pacific, he said.   Continued...

 
Reflections are seen in the windows of a Bank of America branch in New York, U.S. on October 8, 2008.  REUTERS/Lucas Jackson/File Photo