South China Morning Post (SCMP) published an article entitled “Big banks lose favour with Hong Kong students” on 8 July 2013. Anita Lam, journalist at SCMP, writes that US and European banks have dropped in the rankings due to recent reports of layoffs and lower profits.
At the same time Anita Lam observes that Hong Kong and Asian banks, however, have profited from the situation, by increasing their positions in Universum’s ideal employer rankings.
SCMP’s journalist points out that Goldman Sachs, Morgan Stanley, Bank of America Merrill Lynch, Credit Suisse and the Royal Bank of Scotland have all dropped in Universum’s ideal employer rankings.
Goldman and Morgan Stanley both dropped 10 places to 19th and 17th respectively. Bank of America Merrill Lynch dropped seven places to 31st and Credit Suisse dropped 17 places to 44th. Lastly, Royal Bank of Scotland fell 23 places to 72nd.
Although Hong Kong and Asian banks are still ranked below their international competitors, the research shows that they are increasing in popularity. Bank of East Asia, DBS Bank, and Bank of China have all climbed significantly in the rankings. Banks of East Asia jumped 18 places to 39th. DBS bank climbed 13 places to 33rd and Bank of China took one extra place to 15th.
Ankita Modi, Universum’s country manager, is quoted explaining why Asian banks are becoming more attractive in the region. Ms Modi explains that it’s due to their “relative stability and level of confidence”. Bank of East Asia, for example, reported record profits of HK$6.1 billion just last year.