HONG KONG (Reuters) -Morgan Stanley is reducing at the least 50 funding banking jobs in Asia Pacific, three sources stated, turning into the newest amongst world banks to reduce operations within the area primarily as a result of a droop in China markets.
The layoffs have an effect on round 13% of the Wall Avenue financial institution’s Asia funding banking workforce of 400 within the area, based on one of many sources.
Bankers primarily based in Hong Kong and mainland China are going to be affected probably the most, they stated. The entire sources declined to be named as they weren’t authorised to talk to media.
A Morgan Stanley spokesperson declined to remark.
Bloomberg first reported the job cuts on Wednesday.
The cuts are one the biggest to its China-focused funding banking group and comply with related measures by different banks additionally stung by decline in deal making actions in China amid a slowing economic system.
In January, Financial institution of America laid off round 20 bankers within the area, following a flurry of funding financial institution downsizing by UBS, Citigroup and different boutique corporations.
Morgan Stanley on Tuesday reported a primary quarter revenue of $2.02 per share, which was above analysts’ common estimate of $1.66, based on LSEG information.
The financial institution’s whole income rose to $15.14 billion in contrast with $14.5 billion a 12 months earlier. Funding banking income climbed 16% in comparison with the identical time final 12 months.
Within the Asia-Pacific area, merger and acquisition advisory charges for the financial institution within the first quarter dropped 41.5% to $30.4 million, based on information compiled by LSEG.
The financial institution’s fairness capital markets charges – together with Japan – have been value $68.5 million for the primary quarter, LSEG information confirmed, up 26.3% on the identical quarter in 2023.