ADVFN - Advanced Financial Network.
HOME» NYSE » G » GS Stock Price » GS Stock News

Gs Share News

 Goldman Sachs Grp., Inc. Stock Price
GS Stock Price
 Goldman Sachs Grp., Inc. Stock Chart
GS Stock Chart
 Goldman Sachs Grp., Inc. Stock News
GS Stock News
 Goldman Sachs Grp., Inc. Company Information
GS Company Information
 Goldman Sachs Grp., Inc. Stock Trades
GS Stock Trades

Investment Banking Staffing Shrinks 5.6% in Year

The number of investment banking jobs at the world's largest banks has fallen by around 5.6% over the past 12 months, according to Financial News analysis, as financial institutions look to stave off the impact of increased costs and declining fee revenues. According to FN analysis of eight investment banks to have published staff numbers in their second quarter results, global investment banking headcount fell from 176,495 at the end of June 2011 to 166,606 at the end of June 2012, a decline of 5.6%. The reduction has been at a fairly steady pace -- with 2.7% coming between the end of June 2011 to the end of 2011, when 171,724 investment banking staff were employed. The percentage fall since the end of 2011 and the halfway-point of 2012 was slightly steeper at 3%. The figures were calculated by looking at second quarter results filings and divisional headcount numbers for banks that break out staff numbers for their "investment banks" or "corporate and investment banks". They were UBS AG (UBS), Credit Suisse Group AG (CS), JP Morgan and Unicredit SpA (UCG.MI). Goldman Sachs Group Inc. (GS) and Morgan Stanley (MS) only disclose group-level figures, so we came up with our investment banking staff estimates using a formula devised by JP Morgan analyst Kian Abouhossein. He estimates that about one-third of Morgan Stanley's group headcount are employed in investment banking, and around 65% within Goldman Sachs' group headcount. We also used Abouhossein's methodology for the approximate number of staff employed in Deutsche Bank AG's (DB) corporate banking and securities business. The German bank does not disclose the number of back office employees in quarterly results. Abouhossein estimated in a July research note that total corporate banking and securities staff can be approximately calculated by trebling the number of front office staff it does report. Of the eight banks we analyzed, Goldman Sachs reported the steepest drop with a fall of 9% in the number of jobs it recorded between the end of June 2011 and the same point this year. The bank recorded a group-wide cut from 35,500 to 32,300 in the period. Using JP Morgan's Abouhossein formula, investment banking headcount declined from 23,075 at the end of June 2011 to 20,995 at the end of June 2012. Barclays PLC (BCS) was the least affected bank in terms of headcount. It maintained relatively steady levels, recording 23,600 staff at its investment bank at the end of June 2011, dropping to 23,300 at the end of June this year; a 1.3% fall. Deutsche Bank reported front office headcount in CB&S of 10,079 at the end of June this year, down from 10,846 a year earlier. Using Abouhossein's formula, we have calculated that the German bank cut the number of staff it employs in its corporate banking and securities business from an estimated 32,538 at the end of June 2011 to 30,237 at the end of June this year, a fall of 7.1%. Morgan Stanley cut the number of staff in its investment bank from approximately 20,859 at the end of June 2011 to 19,542 at the end of June this year, a fall of 6.3%. It reported group headcount of 62,577 at the end of June 2011 and 58,627 at the end of June this year. Credit Suisse cut the number of employees in its investment bank from 21,300 to 20,600; while UBS cut from 17,776 to 16,432. JP Morgan cut from 27,716 at the end of June last year to 26,553 at the same point this year. Unicredit cut the number of employees in its corporate and investment bank from 9,631 to 8,947. FN did not include investment banking numbers at Royal Bank of Scotland Group PLC (RBS), which restructured its global banking & markets business in January as part of its retrenchment. It formed two units called "markets" and "international banking", wrapping in the international arm of its global transaction services division. It reported a total of 19,000 staff in GB&M at the end of June last year and 2,700 in GTS. It reported a total of 17,300 employees in its markets and international banking division at the end of June this year. RBS also sold its Hoare Govett corporate brokerage business to US investment bank Jefferies during that period, and had also undertaken significant restructuring of its business. HSBC Holdings PLC (HBC), Bank of America Merrill Lynch (BAC) and Citigroup Inc. (C) do not disclose divisional headcount in quarterly results. Our figures come as Coalition, a research provider, said the total number of bankers in fixed income, equities, and origination and advisory at 10 global investment banks had fallen to the lowest number in five years. It said that 58,600 had been employed in such roles at the end of June 2012, compared to 59,100 at the end of 2008. Jonathan Nicholson, managing director at search firm Astbury Marsden, said: "It doesn't surprise me that it's as stark as it is. While IB is under the kind of pressure that's well documented, it's also likely to continue for a few quarters. He added: "But there will come a point where you cut into the muscle of a business and it becomes impossible to provide the services that clients and customers expect." All of the banks declined to comment. Web site: _39339 Subscribe to WSJ:

Stock News for Gs (GS)
01/29/201519:35:20Spotify Seeks to Raise About $500 Million, Hires Goldman--Update
01/22/201520:18:39Dimon, Blankfein Get Lucrative Pay Packages -- 3rd Update
01/22/201518:00:05Canarsie Hedge Fund Collapses
01/22/201517:50:37Goldman's Blankfein Gets Up to $24 Million in Salary, Bonus for...
01/22/201503:35:13Simplifying the Pricing Puzzle -- Barron's Asia
01/21/201517:26:16Uber Raises $1.6 Billion in Goldman Debt Offering
01/20/201507:51:26Morgan Stanley's Results Miss Estimates -- Update
01/16/201510:16:04Goldman Sachs Profit Slides on Lower Trading Revenue -- 3rd Update
01/16/201508:49:47Goldman Sachs Profit Slides on Lower Trading Revenue -- 2nd Update
01/16/201508:26:08Goldman Sachs Profit Slides on Lower Trading Revenue -- Update
01/16/201508:09:47Goldman Sachs Posts Lower Earnings, Revenue
01/15/201519:52:26Biggest Banks Lag Behind as Economy Gains Steam
01/15/201517:43:14Freeport-McMoRan Settlement Leaves Credit Suisse in Cross Hairs...
01/15/201514:15:38Goldman's FICC Revenue Seen Falling -- Earnings Preview
01/15/201512:49:45Advent Said Launching Sale of Financial Services Firm GFKL -Reuters
01/14/201515:23:09Nasdaq Plans to Begin Energy Futures Venture This Year -FT
01/12/201507:16:08MBK Seeks to Offload Stake in Korean Cable-TV Operator -- Update
01/12/201506:05:42Brent Crude Falls Below $50 On Nagging Oversupply Fears
01/12/201503:18:55MARKET SNAPSHOT: Banks Kick Off Low-expectation Earnings Season
01/12/201500:41:47Brent Crude Falls Below $50 in Asian Trading

Goldman Sachs and other New York Stock Exchange stock quotes are delayed by at least 20 minutes.
All other stock price data is delayed by at least 15 minutes unless otherwise stated.
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
Contact Us | Copyright 1999-2007 ADVFN PLC. | Privacy Policy | Investment Warning | Data accreditations | Investor Relations