BNP Paribas investment banking unit in expansion mode

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BNP Paribas said its investment bank would post a compound annual growth rate of over 6% over the next three years as part of a plan to expand outside Europe and boost product cross-selling.

Reuters reports that it also said it had increased its Asia staff by 400 net as part of a hiring spree to increase exposure to Asia Pacific.

BNP, which is holding an investor day in Paris, reiterated targets for a double-digit percentage rise in earnings over the next three years and an increase in the dividend payout to 45% of earnings by 2016 from 41% in 2013.

BNP targets annual growth above six percent for investment bank

Bloomberg News reported last week that Deutsche Bank plans to cut more jobs at its investment bank to lower costs as business stagnates, two people with knowledge of the plan said.

The bank is weighing the reductions, which come in addition to the 2,000 announced in 2012, over the coming months across its corporate finance, capital markets and trading businesses, said the people.

Bloomberg also reported that Bank of America is cutting jobs across co-Chief Operating Officer Thomas Montag’s global trading and investment banking units, according to three people with direct knowledge of the decision.

The dismissals will affect fewer than 5% of employees in the units, said one of the people, who requested anonymity because the moves haven’t been made public. Some staff members volunteered to go, the people said.

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