BofA, Citigroup trim investing banking headcount in Asia -sources

By Selena Li and Kane Wu

HONG KONG (Reuters) -Bank of America and Citigroup (NYSE:) have cut some investment banking jobs in Asia, people familiar with the matter told Reuters, joining global peers in paring headcount as China dealmaking slows.

Bank of America (NYSE:) (BofA), which is shrinking its investment banking business globally, did away with around half a dozen Hong Kong-based jobs on Thursday, two people familiar with matter said.

David Lam, a managing director in BofA’s Greater China equity capital markets team, was among those laid off, they said. Lam confirmed his departure when contacted by Reuters.

Citi on Thursday trimmed four jobs from its China investment banking team, said one of the two people and a separate person. The Wall Street bank is laying off less than 1% of its workforce globally, people familiar with the matter have said.

BofA and Citi both declined to comment on layoffs involving investment bankers in Asia. All sources were not authorised to speak to media and declined to be named.

The number of the banks’ remaining China-focused investment bankers could not immediately be learned.

After record dealmaking activity in 2021, M&A volumes and stock floats globally tumbled last year as volatility in capital markets and geopolitical tensions took their toll.

China-related deals were particularly hard hit as harsh COVID-19 curbs, lifted only late in the year, hammered the economy.

Other major banks that have trimmed Asia headcount include Goldman Sachs (NYSE:) and Morgan Stanley (NYSE:).

JPMorgan (NYSE:) has also cut around 20 investment banking jobs, mostly mid-level bankers focused on China deals, according to two separate sources. Bloomberg reported on Feb. 21 that the bank was laying off 30 bankers in Asia.

“We regularly review our business needs and a small number of employees across Asia Pacific have been affected,” a JPMorgan spokesperson said, declining to comment on the number of layoffs and teams affected.

Nomura Holdings (NYSE:) Inc has cut 18 Asian banking jobs, most of them China-focused investment banking roles, sources have said.