Nordea is employing fewer investment bankers than this point last year, but is set to pay them more.
The Nordic bank has just released its Q3 results, which missed analyst expectations with net income of €686m, and its employees should now be adjusting to what it calls the ‘new normal’; namely a tight lid on expenses and reduction in headcount.
Across the organisation, employee numbers are now 31,692, down from 33,844 from this point last year. The majority of these cuts have hit its Polish and Baltic retail banking functions, where headcount fell by 19% and 11%, respectively.
By comparison, headcount in its wholesale banking division has fallen by just over 300 year-on-year, or 8%. At the same time, however, staff costs are increasing – by 11% year-on-year to €595m. This means an average of €97.2k per head to Q3 in 2012, versus €83.5k last year.
Nordea’s capital markets staff appear well-placed to be the beneficiaries of this increase, particularly in fixed income, which the bank says been the “main driver” of strong results in the division this quarter.