As a range of private banks in Hong Kong – from UBS to Vontobel – compete to bolster their headcounts, it’s becoming increasingly important for relationship managers (RMs) to know how their compensation compares to the sector average.
If you’re wondering whether your current private banking salary in Hong Kong is above or below par, or if you’re venturing out into the job market, we’ve averaged out minimum and maximum base salary data from recruitment firms to produce the table below. And we’ve done this across five broad levels of seniority (job titles in private banking differ from firm to firm – some include the term “director” within ranks two to four, while others prefer “VP”).
Upward pressure on base pay is strongest for VPs and directors, who are now commonly receiving salaries towards the maximum level of HK$1,680k (US$217k). “They’re generally at the pinnacle of their career – boasting experience, a loyal client base and the energy to potentially go to a new bank,” says Abimanu Jeyakumar, head of private banking Hong Kong at Carlton Senior Appointments. “Banks want to keep them happy and equally rival firms are willing to pay particularly competitive salaries to entice them.”
Across the ranks, private bankers moving firms can generally negotiate better pay rises in Hong Kong than in Singapore, says Rahul Sen, head of private wealth management at search firm The Omerta Group. “This is because the industry is older in Hong Kong – it began to grow in the 1980s whereas in Singapore it’s only really been the past 12 to 15 years.”
But over the next 12 months don’t expect average private banking salaries to increase dramatically – recruiters say pay inflation is now cooling. “It’s because of the high cost/income ratio in Asian private banking, which is leading to tighter control over the cost for hiring. Only team moves or bankers with sizable assets under management – at least US$200m – will attract a big premium pay,” says Sunny Kwak, a private banking consultant at recruiters Morgan McKinley in Hong Kong.
Private banking bonuses in Hong Kong
As in Singapore, your private banking bonus percentage in Hong Kong depends more on which kind of bank you work for than how senior you are – although MDs are more likely to receive bonuses at the maximum level for their firm than AVPs are (and their larger salaries will ensure a higher actual bonus payment). Here are minimum and maximum bonus percentages across four key types of private banks in Hong Kong.
Private banking bonus percentages are lower at UBS and Credit Suisse because these firms offer more potential to generate large revenues via their more expansive product platforms. “If you’re a CS or UBS, you don’t need to offer a massive percentage to attract people,” says Sen.
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