Morning Coffee: Hiring AND cost-cutting at BNP Paribas. Why young bankers love their jobs really
In the strategy presentation accompanying today's results, BNP says it wants to make an additional €800m of cost savings each year (bringing the total to €2.8bn), starting from 2016. 24% of these savings will come from the corporate and investment bank, where BNP plans to pool operating platforms with its securities services business and to "industrialize flow processes."
However, BNP also appears to have hiring plans. It wants to bolster its high yield team, and to grow and consolidate its presence in Asia and North America. Relationship bankers are likely to be needed in the US, where the French bank says it wants to 'develop business with large corporates and institutional clients.'
Cynics might say that BNP has been trying to crack the U.S. investment banking market for years. Working in the US has its dangers - BNP's results also contain a $1.1 billion provision against possible penalties for allegedly violating US laws restricting financial transactions with countries under economic sanctions. In the fourth quarter, this drove net profit across the bank down by 76%.
Separately, Financial News has spoken to some young M&A bankers about their jobs. There's the (now) standard stuff about working 45-46 hours in a row, at weekends, and feeling compelled to perform against all the other highly-driven, hyper-competitive young people banks like to employ. Buried in the article, however, are also some nuggets about what makes the job itself worthwhile. Young bankers "yearn" to feel involved in the deal-making process, finds Financial News. They like belonging and being involved. Some, 'love the work': "They weren’t just producing slides, they were part of the process and core members of the deal team.”
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