It still pays to work in private banking
Top level client relationship managers working at global private banks in the Middle East were among the highest earners working in financial services in the region last year.
A managing director working in CRM position in a global bank brought in an average total compensation of $664k last year, according to the Napier Scott salary survey. $372k of that was in bonus payouts.
To give you an idea of relative numbers, an MD working in corporate finance at an international investment bank earned an average of $493k in 2008.
It's not too bad lower down the ranks in private banking either, with executive directors bringing in an average of $504k, and directors earning $365k.
The Middle East undoubtedly has a lot of cash - wealth in the region grew by 8.6% annually, according to the latest global wealth report by Boston Consulting Group and three of the five densest millionaire populations are in the Gulf (Qatar, the UAE and Kuwait).
However, the wealth management industry as a whole has suffered, with assets under management expected to have slumped by 15-20% in 2008, according to FT Wealth. So how has pay remained so high?
Bill Allum, managing director at Napier Scott, says: "One of the big factors is that private bankers have a tailback on assets they won in previous years, which had been deferred. Also, up until the middle of last year we were still seeing private bankers moving into the region, and securing guaranteed bonuses which were paid out this year."
Bonuses are unlikely to be anywhere near as big next year, he says.
And, as we reported before, recruitment in this space isn't exactly buoyant at the moment. But Allum insists there are opportunities.
"We're seeing a reasonable amount of activity from Swiss banks looking to build up in the region," he says.
Pictet & Cie gained a licence from the DIFC in January, Julius Baer hired Jean-Marc Suter to head its new Abu-Dhabi office this year, and Credit Suisse is rumoured to be eyeing a Middle East push.
Emirates NBD has also just recruited Gary Dugan from Merrill Lynch Global Wealth as chief investment officer for its private banking division in Dubai.
