|
|
Bankers and headhunters said that BNP Paribas SA, Deutsche Bank AG and Barclays PLC are among lenders likely to cut back equities trading and research teams in non-core markets in Asia this year.
The mooted cuts set the tone for a tough 2016. Already this year, turmoil in Chinese stocks has clouded the picture for brokers trying to drum up business in key commission-paying markets, as unpredictable central bank and regulatory action sent shares tumbling and triggered trading halts.
"We continue to see banks assessing profitability of businesses in Asia," said Paul McSheaffrey, head of Hong Kong banking at KPMG.
Weaker revenue and tighter regulations have dulled returns in the Asia equities business, McSheaffrey said, with the result that some lenders will trim operations in non-essential markets.
"Banks have to assess what is core to their customer franchise and shape their footprint accordingly," he said.
In markets such as India, home-grown rivals have cornered a bigger share of the domestic business and offer broader research services afforded by lower costs, bankers said.