Banks want more staff - but not quite yet

Investment banks are considering hiring more staff in response to improving economic conditions, according to an unusually upbeat report by the headhunter Alexander Mann Executive Search (AMES).

'Banks are beginning to entertain the idea that they may be able to hire in the not too distant future,.' AMES said in a monthly survey of recruitment in London. 'They are raising their heads in mergers and acquisitions, venture capital and private equity activity.'

The survey's tone was markedly more optimistic than AMES's previous surveys over the past year - but even so it cautioned that the job market will not improve quickly. (AMES was formerly called Alexander Mann Global Markets, or AMGM).

'Businesses have realigned to allow them to cover existing client bases with a much reduced headcount,' it said. 'Sales teams are being re-rolled to sell more than one product and asset class.'

'It will therefore take a much greater degree of certainty before we see any tangible return to (hiring) volume.'

In the meantime, the survey said there is increased demand for sell side credit analysts focusing on financial institutions. Credit derivatives traders and structurers were also finding jobs, often directly rather than through a recruitment firm.

Equity derivatives was a buoyant sector, particularly trading roles. While foreign exchange was less healthy, there were opportunities there in risk advisory and structured distribution roles.

The fund management industry is still making redundancies as firms try to restore profitability, the survey said. 'It is unlikely there will be any significant change before the end of the summer.'

There is little hiring going on in equities, though some banks are considering replacing some staff with higher caliber employees.

The survey said: 'Despite the sustained upturn in global (stock) markets, secondary market research and sales continues to be loss-making with trading - both customer and proprietary - providing the only profit.'