Why are Ireland's banks still hiring private bankers?
Either HSBC doesn't listen to the news or it knows something about private wealth that Ireland's central bank doesn't.
Just a week after the central bank warned growth will slow from 5.3% in 2007 to 2.5% in 2008, HSBC announced a new private bank in Eire.
Rose Tormey, a portfolio manager at Goodbody's Private Wealth, suggests the latest GDP growth figures won't have a huge bearing on Ireland's thriving private banking sector: "In the longer term we expect growth: it is a new business, a lot of wealth has been created, and people are looking for advice and direction in how to manage it."
Brian Nevin, head of client relationships at AIB Private Banking, is equally upbeat. Although the downturn has impacted people's net worth (implying lower private banking fees), he says good quality advisers will always be in demand - "those with good relationship skills, technical skills and a good client base".
Recruiters are of a similar opinion. Brendan Murphy, managing director of Osborne Recruitment, says HSBC has spotted a market among those with €10m-plus who need private banking assistance.
Recruiters say the arrival of the likes of Goldman Sachs and HSBC in Ireland could spell aggressive competition for talent at the top end.
Colin McGhee, director of Paragon Selection, says Irish clients are looking for private bankers to help them diversify out of the sinking domestic property market and into international real estate, hedge funds and private equity.
He says private bankers can earn more than €250k a year, including a €120k basic salary.
