Market Analysis

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Bank of America is expected to increase its bonus pool for investment bankers by 10% for the past year, according to a source familiar with the matter.  

While the average increase is projected at 10%, payouts will vary, with some bankers receiving mid-to-high single-digit increases, and top performers exceeding the 10% mark, two other sources indicated. The bonuses are set to be distributed in February following the bank's fourth-quarter earnings announcement on January 16, one source added.  

Global banks experienced a boost in dealmaking last year, driven by mergers, acquisitions, and a surge in bond and equity underwriting activities.  

Bloomberg initially reported on the anticipated increases at BofA.  

BofA Securities ranked third globally for investment banking fees in the fourth quarter, generating $1.4 billion in revenue—up significantly from $958 million during the same period in 2023, according to Dealogic data.  

In November, compensation consultancy Johnson Associates noted that Wall Street firms are poised to raise bonuses for 2024, marking the first increase since the record-setting payouts of 2021.  

The higher payouts reflect a recovery in transactions, Federal Reserve interest rate cuts, and equity markets reaching record highs, said Alan Johnson, founder of Johnson Associates.

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