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The bank where the big traders earn small bonuses

Lloyds Banking Group reported a pretty middle of the road Q4 earlier today. It doesn't break out trading results, but they probably don't matter.

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Lloyds traders haven't been told their bonuses yet (that's next week), but today's 2023 annual report confirms that while top traders at Lloyds Banking Group are handsomely compensated compared to non-finance professionals, they earn a lot less than top traders at other banks. 

The 38 Material Risk Takes (MRTs), which include senior traders and bankers, at Lloyds’ investment bank split a modest £13m ($16m) bonus pool between themselves in 2023, or an average of £342k ($434k) per person. That compared to bonuses of $642k and $772k each for MRTs in the investment banks of Barclays and HSBC respectively.

The overall bonus pool for MRTs at Lloyds investment bank was, however, up 8.2% on the previous year, and was considerably better than 2020, when Lloyds bonuses were nothing at all. Overall MRT bonuses at Barclays and HSBC's investment banks rose 3.5% and 6.3%.

Lloyds made no mention of the ending of the bonus cap in its remuneration report, but now that the cap is caput there's a possibility that Lloyds is cutting salaries. Its investment bank MRTs reported average salaries of £373k ($471k) in 2023, a slight decrease on 2022, when MRTs there had an average salary of £383k ($483k).

Our financial services compensation guide for last year showed that the average managing director in a sales & trading team globally expected a bonus of around $513k on average, and total compensation of $908k (£719k). And our bonus expectation report from December showed that sales & trading professionals were expecting their bonuses to go up by between 7% to 27%, depending on what exactly they’re trading.

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AUTHORZeno Toulon
  • 5w
    5wapp3r
    22 February 2024

    You have a different currency symbol in each section. Is their average total comp GBP 715,830 or USD 715,830? Thanks

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