JPMorgan (and others) will be fighting for UK corporate bankers

JPMorgan's decision to launch global corporate banking unit is likely to benefit the City job market initially. However, it could face some competition for talent as the move comes at a time when other key players a looking to bolster their ranks once again.

The bank intends to employ 300 bankers in the new division. And, as it's moving Greg Guyett, currently head of Japan at JPMorgan, to London to kick start the operation, the UK looks set to benefit from initial hiring plans.

It will also target Germany and Switzerland as well as China India and Brazil, according the FT's report.

JPMorgan didn't immediately respond to calls for comment.

Still, after a period of cut-backs followed by muted recruitment in 2009, the UK corporate banking sector is providing opportunities again.

Grant Palmer, consultant focusing on corporate banking at recruiters Healy Hunt Partners, says: "There has been more traction in the corporate banking space in the last two or three months - particularly in the front office. Business models are now in place for 2010, and we are anticipating an increased demand for client coverage professionals during the next 6-12 months."

Globally speaking, JPMorgan will be looking to challenge the likes of HSBC and Citigroup in the corporate banking space. However, in terms of recruitment in the UK, it also faces other challengers.

Santander, for instance, tells us that it recruited around 125 relationship managers across the UK last year and "remains committed" to hiring for its corporate bank in 2010.

One senior corporate banker also tells us that JPMorgan shouldn't assume that staff at RBS and Lloyds Banking Group are easy pickings.

"Both Lloyds and RBS will still be keen to attract and retain the best talent, and there's been no softening of salaries at either organisation despite being a little hamstrung by the government. Corporate banking hiring is coming back, and I'd expect significant recruitment drives in the second half of this year," they said.

HSBC has been adding staff in Scotland, and sources say there are also front office opportunities south of the border.