Bank of America to cut Asia investment banking jobs: sources
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
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
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
By Saeed Azhar, Anshuman Daga and Sumeet Chatterjee
SINGAPORE/HONG KONG (Reuters) - Bank of America (NYSE: BAC) 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 (NYSE: GS) 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.
In July, Chief Executive Officer Brian Moynihan announced a new expense target of $53 billion for 2018, $3.3 billion less than its total expenses over the past four quarters.
The new target came after years of working through a sweeping cost-cutting project dubbed "New BAC" and an ongoing efficiency initiative called "Simplify and Improve."
Besides Bank of America and Goldman, many western banks have announced plans to scale down their operations in Asia in the past year, as they grapple with slowing revenue growth and higher operating costs in the region.
Other European banks including BNP Paribas
The value of announced M&A deals for Asia-Pacific companies, excluding Japanese firms, fell 17.7 percent to $553 billion in the first half, while share offerings in the region sank nearly 60 percent, according to Thomson Reuters data.
(Editing by Louise Heavens and Alexander Smith)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Notable Analyst Rating Changes 12/1: (DE) (WLL) (SMTC) Upgraded; (NOV) (MCD) (CERN) Downgraded
- Delta Air Lines (DAL) Names New Chief Communications Officer
- Bank of America (BAC) call put ratio 3 calls for 1 put as shares trend higher
Create E-mail Alert Related CategoriesCorporate News, Reuters
Related EntitiesDeutsche Bank, Goldman Sachs, Bank of America, Barclays
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!