eFinancialCareers

Forget $178bn of writedowns and weekly redundancy announcements, investment banks are still sucking in graduates.

According to the Securities and Investment Institute (SII), the number of banking trainees registered for its entry-level examinations this year is down only 6% compared to last year.

Given most trainees take the SII’s exams, the implication is clear: banks haven’t slashed their graduate hires this year after all.

This is particularly impressive when you consider that their graduate intakes rose 20% between 2006-07.

Why are banks still so keen?

It might just be a question of delayed reactions. Banks would have decided how many graduates to hire for 2008 back in the summer of 2007, when subprime was a mere germ of a problem.

Brian Hood, head of graduate recruitment at Citi, says: “There are areas of the business where hires have increased – such as technology and corporate banking – and some where numbers have fallen. But generally it’s small movement, and the numbers have remained flat overall on 2007.”

Steph Ahrens, head of graduate recruitment at Morgan Stanley, says: “A lot of the cuts will be coming in more senior posts. Banks still need to develop future talent and as such entry-level positions shouldn’t be affected.”

What about 2009?

Hiring may be steady in 2008. But will it hold up next year?

Ahrens says: “My feeling is that numbers will fall slightly in London and Europe. However, we will be upping our recruitment in areas like the Middle East, Eastern Europe and emerging markets.”