Banks

RBS share drop accelerates on stress test flop

Stressed. Shares in Royal Bank of Scotland have accelerated their losses this morning, falling over 4.5 per cent after the state-backed lender came in bottom of the heap in the Bank of England’s latest stress tests. RBS failed the toughest ever stress tests carried out by the BoE, with results this morning showing the lender’s […]

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Capital Markets, Financial

BGC Partners eyes new platform to trade US Treasuries

BGC Partners plans to launch a new platform to trade US Treasuries early next year, in a bid to return to a market in the middle of evolution, according to people familiar with the plans.  The company, spun out of Howard Lutnick’s Cantor Fitzgerald in 2004, sold eSpeed, the second-largest interdealer platform for trading Treasuries, […]

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Financial

Sales in Rocket Internet’s portfolio companies rise 30%

Revenues at Rocket Internet rose strongly at its portfolio companies in the first nine months of the year as the German tech group said it was making strides on the “path towards profitability”. Sales at its main companies increased 30.6 per cent to €1.58bn while losses narrowed. Rocket said the adjusted margin for earnings before […]

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Currencies

Renminbi strengthens further despite gains by dollar

The renminbi on track for a fourth day of firming against the dollar on Wednesday after China’s central bank once again pushed the currency’s trading band (marginally) stronger. The onshore exchange rate (CNY) for the reniminbi was 0.28 per cent stronger at Rmb6.8855 in afternoon trade, bringing it 0.53 per cent firmer since it last […]

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Currencies

Nomura rounds up markets’ biggest misses in 2016

Forecasting markets a year in advance is never easy, but with “year-ahead investment themes” season well underway, Nomura has provided a handy reminder of quite how difficult it is, with an overview of markets’ biggest hits and misses (OK, mostly misses) from the start of 2016. The biggest miss among analysts, according to Nomura’s Sam […]

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Categorized | Banks

Banks back London with graduate hiring spree


Posted on November 27, 2016

Deutsche Bank doubled the number of graduates it hired for its London technology teams this year in the most striking example of banks’ ploughing ahead with recruitment plans despite the uncertainty caused by Brexit.

A recent report by Oliver Wyman said the UK’s decision to quit the EU threatens as many as 71,000 City jobs, since the UK could lose access to the single market that allows companies to use London as a hub to sell across the EU.

But recruiters and bankers said that Brexit had “no impact” on banks’ hiring for the 2016/2017 season and that banks continued to hire strongly in several areas.

Deutsche Bank was the standout, doubling its technology hires, according to industry sources. As well as the fall out from Brexit, Deutsche has spent much of the year battling homegrown crises about its capital adequacy, strategic direction and looming fines.

At Barclays, group head of graduate resourcing and development Jane Clarke said hiring appetite is “as strong as ever” and the numbers for this year would be in line with the 2015/16 season. Barclays is also hiring more for technology, but the increase is not as dramatic as at Deutsche.

Citi has hired almost all of its 450 London graduate vacancies, the same number of spots as it filled for 2015/2016, while JPMorgan and Goldman Sachs have continued to hire at the usual rate, according to people familiar with the situation.

“Despite all the uncertainty, banks are continuing to hire graduates,” said Raphael Mokades, of Rare Recruitment, which works with the big banks, adding that banks are hosting “tech talks”, open houses and webinars all specifically about the role technology plays in a bank.

450

London graduate vacancies at Citi, almost all of which it has filled

Deutsche Bank’s head of graduate recruitment Faye Woodhead said its technology graduates work on everything from programming roles to software engineering to the bank’s innovation lab. “We see [graduates] as an integral part of the future workforce, as a group that brings fresh ideas into the organisation,” said Ms Woodhead.

She declined to specify the number of technology graduates hired this year, but said the London hiring mirrored trends at Deutsche Bank globally. Overall, Deutsche’s global graduate hiring for this year would come in at around 750, said a person familiar with the matter, about the same as in 2015.

“We haven’t seen a question in the minds of businesses as to whether graduate recruitment should be impacted [by Brexit],” said Ms Woodhead. “We have a three-year plan.”

Andrew Breach, director of financial services at recruitment company New Street, said it made sense to “hire and train the grads in London and New York, in terms of economy of scale”.

“Ultimately, the investment banks still want London to be their main platform from which to operate in Europe but, if the ‘divorce’ negotiations go badly it is still relatively easy to relocate individuals from London to Frankfurt/Paris/Luxembourg/Dublin if they have to,” he added.

Five months on from the Brexit vote, banks say there are still too many uncertainties for them to decide which of their operations they need to move out of London, and where they should move to. Most have narrowed their options down to a shortlist, which usually includes Frankfurt, Paris and Dublin, while keeping as much as they can in London.