On one hand, First Rand is cutting jobs. On the other, it’s making redundancies.
Following an interview with Alan Pullinger, CEO of Rand Merchant Bank, Bloomberg reports that the investment banking division of First Rand is considering cutting staff in order to boost its return on equity.
This follows an earlier statement to the effect that the bank will discontinue prop trading and combine its fixed income, currency, commodity and equity trading units into a new ‘global markets’ division.
There will be some beneficiaries of the new arrangement. Pullinger said the bank will grow its, “trading and market-making business that enables our client franchise.”
It will also be expanding in asset management and prime broking.