Banking bonuses lure students

Deutsche Bank, Citigroup and Lehman Brothers all say applications for graduate positions have risen around 20% this year compared to last. "There are a lot more jobs, the sector is buoyant and more students are looking to investment banking as a career opportunity," says Ellen Miller, head of graduate recruitment at Lehman Brothers.

SallyAnn Birchall, head of graduate recruitment at Deutsche Bank attributes the rise in applications to favourable headlines: "The investment banking industry has finally had a good press. The industry has had a bumper performance. And banks are hiring and have been all over campus."

Could students' resurgent interest in banking have something to do with the hefty bonuses paid out this year? John Mack, chief executive at Morgan Stanley received $11m for just five months work, and rumour has it that energy traders at some US banks are on track for $10m plus.

Earlier this year a survey of the career intentions of students at top universities suggested 10.8% of final-year students aspired to work in investment banking in 2005, up from 10.5% in 2004.

The rise in applications follows a period of weakening interest in banking careers after banks cut graduate recruitment and made junior staff redundant in 2002 and 2003.

Although more students are applying, banks' graduate recruiters say the industry is no harder to get into. Some of the new applicants are poor quality, and most banks are looking to hire more juniors than ever for 2006.