Investment banks in the UK expect to hire 2,700 graduates this year, on median salaries of £45k

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Strangely, perhaps, investment banks in the UK are both hiring more graduates and paying their graduate hires more.

A report out today from the graduate research company Higher Fliers, suggests leading investment banks expect to hire 2,700 graduates this year, an increase of 5% (or 123 people) on 2011.

Median salaries for graduates going into investment banks are expected to reach £45k, an increase of 7% on last year - a bigger rise than in any other industry sector. Bonuses are likely to be awarded in addition to this. Across the UK as a whole, graduate salaries are stagnating (at a median of £29k).

Banks’ graduate recruitment intentions make them the second largest category of student hirers in the UK, behind accountancy firms. High Fliers gathered responses from Bank of America Merrill Lynch, Barclays Capital, Citi, Credit Suisse, Deutsche, Goldman Sachs, HSBC, JPMorgan, Morgan Stanley, RBS, and UBS.

The only insect in the graduate hiring ointment is internships: investment banks expect to fill 71% of their 2012 graduate places with 2011 interns, suggesting there are/were only 783 places available to non-interns this year.

The other danger is that banks will moderate their graduate hiring intentions as 2012 progresses. For 2011, they initially said they wanted to hire 3,300 people, but they subsequently reduced this to 2,647. Even at current estimates for 2012, banks’ graduate hiring remains 21% down on 2007.

Source: High Fliers 

Source: High Fliers