Barclays annual bonuses expected to increase as much as 20%

BARCLAYS is set to increase annual bonuses by as much as 20 per cent in its investment bank after an improved year for traders and advisory teams.

Staff in Barclays’ trading unit are expected to see a 5 to 10 per cent rise in their annual awards, while bankers in debt and equity capital markets could see bonuses jump by between 10 per cent and 20 per cent, according to sources familiar with the matter.

While final decisions on the bonus pool are still being made, staff in the investment bank are on course for markedly better payouts, the sources said, asking not to be named as the details on pay are not yet public.

A year ago, dozens of bankers got no bonuses whatsoever after a dry spell in corporate dealmaking and capital markets. Bonuses fell 43 per cent last year across the bank, according to its 2023 annual report, following an 8 per cent decline in 2022 that was partly due to conduct issues.

A spokesperson for Barclays declined to comment.

The London-headquartered bank has enjoyed a strong year as activity in markets improved and chief executive officer CS Venkatakrishnan ploughed ahead with a multi-year plan to boost returns. In October, Barclays said advisory revenue more than doubled in the third quarter compared to a year ago, while revenue from fixed-income and equity traders beat expectations. Barclays also increased its forecast for net interest income to reflect stubbornly high interest rates.

The turnaround plans for the bank include a £2 billion (S$3.4 billion) cost-cutting drive that has led to job cuts in parts of the investment bank such as global markets, advisory and research. This has been tempered with hiring in areas where the bank wants to grow its markets share, such as equity derivatives and securitised products.

Across Wall Street, expectations are rising for a decent year for bonuses, particularly in capital markets-related jobs. Bankers involved in debt sales are predicted to get a 23 per cent rise in their total pay for 2024 compared with last, according to search firm Options Group, while Johnson Associates is forecasting even bigger rises of 25 to 35 per cent for debt capital markets employees. BLOOMBERG