How much will you earn as a banking intern in London this year? Quite a lot, actually.
Front office interns at leading banks in the City of London say they're earning "close to £1k" ($1.6k) a week for their 10 weeks in banks this summer. This is up from around £865 a week last year.
"I've received a revised contract increasing my pay," says an incoming intern at a European investment bank. "It was supposed to be £45k pro-rata, now it's been increased to £50k."
The increases are understood to apply at top US banks like Bank of America Merrill Lynch and Goldman Sachs, as well as at European banks like Credit Suisse and Barclays.
The hike in interns' pay reflects recent increases in pay for analysts in investment banks. First year analysts in most investment banking divisions (IBD) can now earn salaries of £50k-£55k. On a pro-rated basis, interns are now paid equally - although analysts receive additional bonuses and interns do not. Analysts' bonuses are expected to decline in proportion to the increase in their salaries, however interns have just received a straight pay rise.