Junior investment bankers in Singapore have experienced pay rises in recent months that put their salaries nearly on par with their Wall Street counterparts.
Howe Yuin Teo, Head of Financial Services Front Office, and Jasmine Tan, Director of Front Office Financial Services, recently spoke to eFinancial Careers on behalf of Kerry Consulting, illustrating the growing need for analysts and associates in the investment banking industry. Read the full list of quotes below.
More Analysts Required
“On December 22nd, Investment banking fees for 2021 hit US$1bn, representing a 34.4% increase from the previous year as M&A activity reached a new high. This means financial institutions need more analysts and associates to do the groundwork on deals, including financial modelling and due diligence.”
Attracting a Small Pool
“The pool of Singapore-based analysts and associates remains small, and hence most large banks increased pay for juniors by around 15% to 20% last year in order to attract and retain them.”
Base Salary Increases
“The base salary for first-year analysts is now in the range of $S90k – S$130k, depending on whether they are with a mid-size firm or a tier-one bank.”
Second Year Increases Evident, Chinese Banks Paying Less
“Second-year analysts now command a salary of S$100k – S$150k. Boutique investment banks and Chinese investment banks in Singapore, however, generally pay 20% to 25% less due to their ‘inverted compensation schemes’ which put more focus on bonuses.”