CA
Headcounts Grew in Q2 While Banking Revenue Sank
Sep 11 2008
Despite plummeting investment banking revenues, Canadian securities companies probably won’t cut jobs deeply, according to the Investment Industry Association of Canada.
In its second-quarter report, the association said 175 additional jobs were added in the securities industry during the quarter. The industry gained jobs even while investment banking revenues plunged 33 percent to $1.7 billion for the first six months of 2008, compared with $2.5 billion in the first half of 2007.
"Given the significant investment in professional staff, drastic employment cuts are unlikely, unless market and industry conditions deteriorate drastically," the association said.
Over the past several quarters, the report said, proprietary traders and equity market makers have experienced "treacherous" conditions. Wealth management was a bright spot, as advances in energy and commodity stocks led to portfolio rebalancing producing an increase in sales commissions. Wealth management has been a stabilizing force for firms as investment banking and equity trading have “taken the brunt of the market weakness," according to the report.
