Financial institution of America bonuses for funding bankers to rise about 10%, supply says

By Saeed Azhar

NEW YORK (Reuters) – Financial institution of America’s bonus pool for funding bankers will most likely rise 10% for final yr, a supply conversant in the matter instructed Reuters.

Whereas the typical enhance can be 10%, some funding bankers will get smaller payouts within the mid-to-high single digits, whereas different prime performers would exceed the ten% vary, two different sources instructed Reuters.

The bonuses can be paid out in February after the financial institution declares its fourth-quarter earnings on Jan. 16, one of many sources mentioned.

World banks have benefited from a rise in dealmaking final yr led by mergers, acquisitions, and a surge of underwriting for bonds and equities.

Bloomberg earlier reported on the BofA will increase.

BofA Securities ranked third on the worldwide offers for funding banking charges within the fourth quarter, incomes $1.4 billion in income, up sharply from $958 million in similar interval in 2023, in keeping with Dealogic information.

Compensation consultancy Johnson Associates mentioned in November that Wall Avenue companies are anticipated to pay heftier bonuses for 2024, the primary enhance since a bumper yr in 2021.

Payouts will most likely rise after financiers benefited from a number of components in current months: a restoration in transactions, the Federal Reserve slicing rates of interest and fairness markets surging to document highs, mentioned the consultancy’s founder, Alan Johnson.