Private Banking Salaries

Originally Posted by Liverpool

couldn't agree more...

Dear bros, I work in a bank. Just to contribute some facts here.

1. Bankers do churn their customers in order to meet their targets. Bankers talk about the revenue they generate, not the profit they make for customers. For most products, they have some discretion how much spread they want to take from customers. For eg. If pdt A earns 8% interest, banker can tell customer it earns 5% interest and pockets the 3%. If you think this is not very right, then you are not suited to work as private/priority banker.

2. Accumulators/ structured finance/ pdts are still around and selling like hotcakes.

3. When an earlier post mentioned using leverage to increase a 100M AUM to 150M AUM to generate more revenue, it doesn't mean the banker helped the client to make 50% profits! It merely meant that the client can buy more stuff using his 100M (aka gearing, leverage, financing, borrow to buy more etc) I agree that if the banker can help the client make 50% profits, he would hv already set up a hedge fund himself! The truth is, bankers care more about their own revenue targets.

Originally Posted by Unregistered

you serious? Advising clients to have 50% gain is quite impossible esp now where the banks are not extending much leverage to the client. Plus these days, clients are in risk avoidance mode, no more accumlator structures, no more structured finance stuff. how to make money without taking risk or leverage? good old days are gone, that is why CS and UBS are cutting staff as their revenues are not increasing as fast as salary compensations as their churn rate is getting lower....

anyway, if you can make 50% for client, you are actually better off running your own hedge fund.

I think you are mistake , leverage up 50% is not the same as gain 50%.
But leverage can up your % of return. You want the magic of leverage, I will show you

Buy bond 10 year, pays, 6%
Take leverage 1 month at 1.5%
Increase return 4.5%

Assuming 1 M
1M earns 6% (60000)
0.5M leverage earns 4.5 % (22500)
total earn 85000 for client or 8.5%

RM earns on income from bond AND leverage income.

Dont jump the gun before understanding leverage. If so, banking business is not for you.

As for the banker who proclaim you churn. Well. its a matter of surviving in the business. Sure you have to meet your target. But if you can meet it once and not ever again as a result of churning, where will you be in 3 years time?

ans : Another bank.
There are more products out there that are not necessary churning. Ie insurance, SBLC and if you are in the super league, IPO and big ticket loan items. All these will provide you the revenue you need.

In this business (private banking)its about working smart, not necessary working hard.
A true blue private Banker is unlike a priority banker.

Just trying to give a different pespective of Private banking

Originally Posted by Unregistered

I think you are mistake , leverage up 50% is not the same as gain 50%.
But leverage can up your % of return. You want the magic of leverage, I will show you

Buy bond 10 year, pays, 6%
Take leverage 1 month at 1.5%
Increase return 4.5%

Assuming 1 M
1M earns 6% (60000)
0.5M leverage earns 4.5 % (22500)
total earn 85000 for client or 8.5%

RM earns on income from bond AND leverage income.

Dont jump the gun before understanding leverage. If so, banking business is not for you.

As for the banker who proclaim you churn. Well. its a matter of surviving in the business. Sure you have to meet your target. But if you can meet it once and not ever again as a result of churning, where will you be in 3 years time?

ans : Another bank.
There are more products out there that are not necessary churning. Ie insurance, SBLC and if you are in the super league, IPO and big ticket loan items. All these will provide you the revenue you need.

In this business (private banking)its about working smart, not necessary working hard.
A true blue private Banker is unlike a priority banker.

Just trying to give a different pespective of Private banking

I work in a top tier PB bank, surprised by your hunger to push products, the way you manage the client money will eventually put in the bad books of the ultra-high networth community. Better keep your reputation, as it is a small community, and they will talk among each other. I believe you will out of PB if you believe in screwing the clients
Most of the clients networth these days are tied up in non-liquid assets e.g shares of their IPO company, plantations, etc Their LTV is marked lower due to tight credit control these days, so cant leverage much further.

Quite a lot of it also depends on which region's client you are handling too. Generally, european clients leverage a lot less but their rm's earn from other products such uptakes into funds and (usually) higher spread from cof. Asian clients, especially from hk love to max out all the leverage they can get but they are more price sensitive and demand a lower spread.

[Liverpool]

Originally Posted by Unregistered

I work in a top tier PB bank, surprised by your hunger to push products, the way you manage the client money will eventually put in the bad books of the ultra-high networth community. Better keep your reputation, as it is a small community, and they will talk among each other. I believe you will out of PB if you believe in screwing the clients
Most of the clients networth these days are tied up in non-liquid assets e.g shares of their IPO company, plantations, etc Their LTV is marked lower due to tight credit control these days, so cant leverage much further.

hi since you are working in PB, would you advise someone to join PB? Any regrets? If given a second chance, will u pursue other fields in finance instead?

The finance field is v wide, up to a certain pt, its very hard for u to change fields afterwards. for example, I have a fresh grad friend who enrolls into a fixed income trading program and finds that he does not like it after a few years. He wants to do research on equities and publish analyst reports. However, when he applies for such openings for equities analyst, normally they reject him because he has no prior experience. He is still looking for such opportunties and he may have to take a Masters or MBA to start all over again...

Originally Posted by Unregistered

I work in a top tier PB bank, surprised by your hunger to push products, the way you manage the client money will eventually put in the bad books of the ultra-high networth community. Better keep your reputation, as it is a small community, and they will talk among each other. I believe you will out of PB if you believe in screwing the clients
Most of the clients networth these days are tied up in non-liquid assets e.g shares of their IPO company, plantations, etc Their LTV is marked lower due to tight credit control these days, so cant leverage much further.

Interesting
In what way do I screw client? By leveraging or by meeting my target?
There is nothing wrong with meeting target and client making money.

Unless you find a problem with that.

As for pushing products. I guess you choose not to read what I said about revenues from other sources that are not related to trading AND beneficially to client.

Pity , a top tier private banker that cannot read.
That I worried for your client.

Read this thread with interest.

A VP in private banking earns not more than $300k (sing dollars?). I would think a VP is someone about 30 to 35 years old? Although it is high, I do know that investment banking pays a lot more for someone that age range. Seems like despite all the talk in singapore about private banking, it doesn't pay as well...

My neighbour keeps saying her son is a high flying banker. I know he trades forex. Does he earn a lot ?

Originally Posted by Unregistered

My neighbour keeps saying her son is a high flying banker. I know he trades forex. Does he earn a lot ?

That's a trader, not a banker.

Is a janitor working in a bank called a banker too?

Originally Posted by Unregistered

That's a trader, not a banker.

Is a janitor working in a bank called a banker too?

Ya, you know how people like to sound more important than they really are.

So how much do they earn. She said he works in a big foreign bank. Drives a Merc and holidays in the Maldives etc. Plus collect expensive watches... High flying lifestyle. Kids ride horses somemore.