In the strategy presentation accompanying today's results, BNP says it wants to make an additional €800m of cost savings each year (bringing the total to €2.8bn), starting from 2016. 24% of these savings will come from the corporate and investment bank, where BNP plans to pool operating platforms with its securities services business and to "industrialize flow processes."
However, BNP also appears to have hiring plans. It wants to bolster its high yield team, and to grow and consolidate its presence in Asia and North America. Relationship bankers are likely to be needed in the US, where the French bank says it wants to 'develop business with large corporates and institutional clients.'
Cynics might say that BNP has been trying to crack the U.S. investment banking market for years. Working in the US has its dangers - BNP's results also contain a $1.1 billion provision against possible penalties for allegedly violating US laws restricting financial transactions with countries under economic sanctions. In the fourth quarter, this drove net profit across the bank down by 76%.
Separately, Financial News has spoken to some young M&A bankers about their jobs. There's the (now) standard stuff about working 45-46 hours in a row, at weekends, and feeling compelled to perform against all the other highly-driven, hyper-competitive young people banks like to employ. Buried in the article, however, are also some nuggets about what makes the job itself worthwhile. Young bankers "yearn" to feel involved in the deal-making process, finds Financial News. They like belonging and being involved. Some, 'love the work': "They weren’t just producing slides, they were part of the process and core members of the deal team.”
There was a very slight reduction in SocGen’s bonus pool. (Bloomberg)
Salim Salam, London- based head of Japanese International Equities Syndicate at Nomura is leaving after 14 years, even though bonuses haven’t been paid yet. (Bloomberg)
JPMorgan equities trader dies aged 37. (Bloomberg)
Cressida Hogg, managing partner of 3i’s £2.4 billion infrastructure investment business, is off to join the Canada Pension Plan Investment Board. (The Times)
“Barclays’ bonus deferral, at three years, looks too short. But the investment banking still generates 60% of profits and investment bankers must be kept happy. (Telegraph)
An aspiring intern’s guide to Bitcoin. (Finance-interns)
How to succeed: be an irrationally over-confident narcissistic psychopath. (Stumbling and Mumbling)
Why you should cycle to work. (ONS)
How a drunk candidate past the CFA Level 1 exam. (300hours)
The banking misogynist’s guide to Valentines Day. (BusinessInsider)