Guess who will get a bonus this year

Bonus or no bonus? That is the question. As the end of the year rolls around, the question foremost in the minds of people these days is whether or not they will get a financial reward.

For many bankers in the Middle East, bonuses are certain to come and they are even more optimistic about it than their counterparts outside the region, a new study found.

Among the professionals surveyed by eFinancialCareers in the UAE, Saudi Arabia, Kuwait, Qatar, Oman and Bahrain, six in 10 (59 per cent) said they are expecting to pocket a payout this year.

About two-thirds of those (65 per cent) are confident that this year’s bonuses will be higher than last year, compared with 56 per cent in the United Kingdom, 60 per cent in the United States, 42 per cent in France and 42 per cent in Singapore.

The global study polled responses from 3,000 employees working in the investment banking, asset management, securities and wealth management sectors, among others.

The financial position of banks in the Gulf Cooperation Council Countries (GCC) has been improving, with net profits reaching Dh19.4 billion in the second quarter of the year, an 11.1 per cent increase over a year ago. Banks’ profits have grown largely due to higher net interest income and non-interest income, among others.

James Bennett, managing director of eFinancialCareers, said the market’s sentiment for the region has also been on a high this year, following the MSCI’s classification of the UAE and Qatar as emerging markets.

“These markets in particular have witnessed an increase in foreign and domestic investment aiding the robust recovery within financial institutions, with employees expecting recognition for their hard work and effort in recent years,” Bennett said in a statement.

Only a small proportion of bankers in the region, 9 per cent, believe that their payouts will be smaller, while a quarter believe the bonuses will “hold steady” this year.

For people expecting either an increase or no change in their bonus, company and personal performance were the most cited reasons.

“This year’s results almost mirror last year’s confidence in bonus expectations, with those expecting to receive an increase in their bonus (65 per cent) marginally higher than last year (61 per cent),” said Bennett.