Market Analysis

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Morgan Stanley's top investment bankers and traders in Asia are set to receive bonuses up to 50% higher this year, driven by strong business growth and last year’s lower base, according to two sources familiar with the matter.

This significant boost follows a robust first year under new CEO Ted Pick and strong trading activity across the Asia-Pacific region. The bank’s institutional equities division, a key component of its sales and trading operations, reported a 51% global revenue increase in Q4 compared to the previous year, with Asia contributing significantly to this growth.

Wall Street banks, including Morgan Stanley, are increasing bonuses for traders in Asia due to heightened client activity in 2024, one source revealed. For top-performing bankers in the region, bonuses are expected to rise by around 40% compared to the previous year, underscoring Morgan Stanley’s efforts to retain talent amid past layoffs in Asia.

While a Morgan Stanley spokesperson in Hong Kong declined to comment, investment banks typically avoid disclosing bonus figures. Bloomberg previously reported that senior bankers handling deals in India and Australia could see bonuses increase by 30% to 40%.

Morgan Stanley, ranked second in investment banking revenue in both the APAC international and Japan regions last year, earned $355 million in fees in APAC, behind JPMorgan, and $511 million in Japan, trailing Nomura, according to Dealogic data.

This year’s bonus hikes come after a challenging 2024 when senior dealmakers saw payouts drop over 20%. Nearly a third of managing directors in Asia reportedly received no bonus last year, one source added.

Paraphrasing text from "Reuters" all rights reserved by the original author.