Nomura confirms it: M&A and capital markets businesses are just not very profitable. Macquarie pays head of risk twice head of M&A
by Sarah Butcher
If you work in M&A or capital markets (collectively known as IBD), you may be a loss leader. Don’t, therefore, expect to get paid anything like your colleagues in sales and trading roles.
There have always been suspicions that M&A bankers aren’t great for the bottom line (RBS’s don’t appear to have been profitable, for example), Nomura’s results today confirm this to be so.
Unusually among banks, Nomura breaks out the profitability of its investment banking (defined as capital markets and advisory) division specifically. For three of the four quarters of the year ending March 2012, it made a loss.
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