Banking exodus gathers pace

Many departees join non-financial companies, while others take not-for-profit or government jobs. Some set up consultancies, take exams, travel or retire.

A Penna spokesman said: "It's mainly because of the lack of jobs in financial services, but also because bankers discover they can do other things."

The survey is based on 2,300 London financial services staff across all sectors who were advised by Penna in 2002. The year before, just over half left the industry for pastures new.

Penna said directors and managing directors are more likely than junior staff to quit the City.

Other outplacement firms agree the exodus from the Square Mile is gathering pace, although their figures are lower than Penna's. BG Careers and Fairplace said 40% of staff do not return to City jobs.

The tendency to change direction is more noticeable in some sectors. Philip Beddows, a director of BG Careers, said 90% of one redundant corporate finance team moved into jobs outside their speciality, while the figure for an equities team was 70%.

Brian Hamill, chief executive of search firm Imprint, said companies in the telecoms and other industries are hiring investment bankers in their late 20s and early 30s to carry out restructurings.

Penna said 71% of redundant staff found new jobs in 16 weeks.