Extra corpulence for Scots corporate banking
The race is on for talent as Scottish bankers reinforce their reputation for canniness by growing their corporate banking operations.
Mark Prentice, head of corporate banking at Lloyds TSB Scotland says that corporate banking in Scotland is highly profitable - not least because of low levels of bad debts north of the border.
As most corporate banking offers are much of a muchness, the biggest barrier to growth is having the right people, says Prentice. Hence, recruitment is a priority.
According to one Scottish headhunter, top corporate bankers can earn a 100k basic with 50% or even 100% bonuses, plus car, pension and share options. And with Scots corporate banking hiring rising, he says packages in London, Birmingham, Leeds and Scotland are converging.
Recruitment hit the headlines recently when Ken Barclay was poached by Royal Bank of Scotland to be its most senior corporate banker. Barclay replaces Derek Weir who is moving to Barclays to grow its corporate banking department.
All the major players are trying to grow their corporate banking operations in Scotland: Lloyds TSB have been recruiting, HSBC has opened a posh new corporate branch in Edinburgh, Clydesdale is offering free meeting space to its corporate customers, and National Australia Group has just appointed Kevin Boyd as head of corporate banking.
Prentice says banks are growing organically but also staking out market share. The home-grown banks, Bank of Scotland and Royal Bank of Scotland, still have 60% or 70% of the market.
