Profit at the division slumped.
UBS’s Asia-Pacific investment-banking bonus pool fell about 15% after profit at the division slumped in the region in 2016, according to a person with knowledge of the matter.
Bloomberg News reports that the decline compares with a strong previous year, when the pool rose 20%, the person said, asking not to be identified because the figures are confidential. Bonuses for high-performing junior bankers in 2016 were mostly flat or fell by a single-digit percentage, the person added.
UBS’s lower bonus allocation reflects a 66% drop in profit at its investment bank in the region last year as its equity-underwriting business slowed.
Bloomberg reported Wednesday that Credit Suisse raised some of its senior Asia-Pacific investment bankers’ pay last year by as much as 15% after the firm boosted advisory revenues in the region, according to people familiar with the matter.
Net revenue of Credit Suisse’s Asia-Pacific underwriting and advisory business climbed 38% last year as clients stepped up merger, equity- and debt-capital market transactions.