BofA to hire 50 bankers for Asia dealmaking team in 2020

Hong Kong

BANK of America Corp will recruit about 50 bankers for its investment team in Asia this year, as it pushes to bulk up its dealmaking business and shore up revenues from the unit globally, three people with direct knowledge of the matter said.

Bank of America's (BofA's) Asia headcount expansion comes against the backdrop of a subdued recruitment outlook for the broader investment banking business as global lenders grapple with cost pressures and slowing M&A momentum.

A third of BofA's new hires in Asia will be senior bankers, including managing directors, for its merger and acquisitions advisory and capital markets businesses, mainly in Hong Kong, Singapore and Australia, the people told Reuters.

BofA's hiring tally for the year could change depending on the deals momentum, said two of the people, who spoke on condition of anonymity as the plans are still confidential.

Deals involving Asia-Pacific firms worldwide fell in 2019 amid the US-China trade war and tighter regulatory scrutiny. But after a Phase 1 agreement between the world's two biggest economies, trade tensions have eased, which should bode well for dealmaking.

Bankers see Chinese state-owned companies playing a major role in dealmaking in 2020, and expect large floats including a potential listing of Ant Financial, an Alibaba affiliate, to buoy capital markets activity.

BofA spokesman in Hong Kong declined to comment.

"The bank's coverage footprint (in Asia Pacific) is smaller than bigger rivals," one of the three people said, adding BofA's hiring has to increase to reduce the gap in coverage of industrial sectors and clients in the region. BofA's recruitment drive for the investment banking unit comes as it struggles with falling market share and revenue, as well as a string of departures of senior leaders in the United States and Asia in the recent past.

The Wall Street bank promoted its Asia Pacific president Matthew Koder to global head of corporate and investment banking in late 2018 and tasked him with revitalising its corporate and investment banking business. Mr Koder, an Australian who started out at Goldman Sachs in the mid-1990s, has made significant changes to the business in the past year and stepped up hiring in the bank's home market as well as in Europe.

Overall, the BofA expanded its investment banking headcount in Asia last year by hiring about a dozen senior bankers, making it one of the most aggressive recruiters among other global banks in the region, one of the people said. REUTERS