Late Lunchtime Links: Lloyds’ Wholesale business made a large loss in the second half, but may still be hiring
As we’ve noted previously, Lloyds Wholesale Banking and Markets was one of the bigger fixed income recruiters at the end of last year. It hired around a dozen people – albeit getting rid of around 8 - and more recently recruited Richard Moore, previously of Citi and MF Global as head of trading.
Today’s results, however, suggest Lloyds’ broader wholesale business is struggling. In the second half of 2011, it made a loss of £371m, following a profit of £1.2bn in the first half. However, banking and markets specifically may be doing a little better: in today’s results announcement, Lloyds stressed that it came first in 2011 for sterling corporate bond issuance (according to Dealogic).
Will there be any more hiring? Headhunters say recruitment at Lloyds is now, ‘selective.’ And yet today’s gushing strategy statement implies recruitment in wholesale banking is a possibility, stating:
“We will strengthen the franchise by retaining and deepening our recurring, multi-product customer relationships, building on deep insight into our customers' needs and by offering a broad range of lending, deposit, risk management, debt capital market and transaction banking products. This strategy will enable us to grow our capital light revenues and continue to be a significant provider of financial support to the UK economy.”
In the meantime, Lloyds has cut headcount in its wholesale banking division by 15% since 2010.
Meanwhile:
The average bonus for 100,000 staff at Lloyds will be £4k. (BBC)
It is deep into the presentation before investors realise Lloyds Banking Group lost £3.5bn. (Guardian)
Investors should rejoice that its cumulative £33bn of operating profit under Mr Hester has spared them further cash calls. Forget the bonuses. (Financial Times)
Is RBS the new British Leyland? (Guardian)
The UK banking levy is set to raise less than half its target of £2.5bn. (Evening Standard)
Aviva is cutting 160 asset management jobs in London, but hiring in Asia. (The Asian Investor)
Credit Agricole said it would close investment banking operations in 21 countries, reduce headcount by 13% (1,750 employees). (Financial News)
Google used to conduct 10 interviews per hire (like Goldman Sachs), but it crunched the numbers and found that after four interviews, each additional one increases candidate knowledge by only 1%. (Fortune)
"I would hate to be starting out in banking now," said a senior banker based in Europe. "Pay isn't what it was and with so much deferred you don't see a lot of it for years but it is still just as hard work, and you are vilified by everyone." (Reuters)
Be kind, for everyone you meet is fighting a hard battle. (HBR)
