An IMGW News Report
A surge in dealmaking and trading has swelled the ranks of high earners at Europe’s top investment banks, widening the gap with lenders that rely more on traditional banking.
Deutsche Bank reported a 28% increase in employees earning more than €1 million last year, bringing the total to 647. One banker took home as much as €18 million, the German lender disclosed on Thursday. The firm also raised its bonus pool to its highest level in a decade, buoyed by a strong performance from its investment banking division.
The windfall reflects the divergence within the sector. Institutions with a strong foothold in capital markets have thrived on surging trading revenues and advisory fees, while those more dependent on lending have struggled to match their profitability.
For Deutsche Bank, this marks a striking turnaround from the days of restructuring and regulatory challenges. Under CEO Christian Sewing, the lender has sharpened its focus on investment banking, which has emerged as a key driver of earnings.
The trend extends beyond Deutsche Bank. Other European investment banks have also seen a rise in top earners, underscoring a broader industry shift. However, the rapid concentration of wealth in the sector is likely to invite regulatory and political scrutiny, particularly in an era of economic uncertainty.
While shareholders may welcome the boost, the sustainability of this boom remains uncertain. A slowdown in deal activity or shifting market conditions could quickly erode gains. For now, however, Europe’s leading investment bankers are enjoying their most lucrative spell in years.
