Big banks lose favour with Hong Kong students
Layoffs and lower profits cut attraction of European and US giants as employers
Big global banking firms such as Goldman Sachs and Morgan Stanley have lost their appeal among Hong Kong business students as the most attractive employers, with declining profits and persistent lay-offs dampening their attractiveness.
In contrast, Hong Kong and Asian banks rose in popularity among students, according to a survey by the Stockholm-based consultancy Universum due to be released on Wednesday.
Universum polled the opinions of students in the six months to May and found that the popularity of nearly all European and American banks fell compared to their standings in its previous survey last year.
Goldman and Morgan Stanley each fell 10 places to 19th and 17th respectively in the Top 100 ideal employers rankings, while Bank of America Merrill Lynch declined seven places to 31st and Credit Suisse dropped 17 places to 44th.
Royal Bank of Scotland lost most ground, falling 23 places to 72nd.
Although Asian banks still ranked below their international counterparts as ideal employers, they gained in popularity.
Bank of East Asia, which posted record profit of HK$6.1 billion last year, jumped 18 places to 39th in the rankings. Singapore-based DBS Bank climbed 13 places to rank 33rd and Bank of China rose one place to 15th.
Accountancy firms such as Ernst & Young and Deloitte also rose in importance for business graduates after the sector was repeatedly highlighted as a major beneficiary of increasing investment activities by mainland firms into and out of China.
Ankita Modi, the consultancy's country manager, said Asian banks might soon overtake their foreign competitors to become the sector's most attractive employers.
"It's hardly a surprise, as business challenges and employment uncertainties plagued some of the foreign banks over the past years. Coupled with their relative stability and level of confidence, Asian banks are perceived to have [an edge] over their foreign counterparts," she said.
