Morgan slashes costs by £40m
Friday 31 March 1995
Morgan's chief executive, Michael Dobson, said that much of the £40m cut was bonuses and reflected tough trading conditions. Dealing profits fell to just £50m after 1993's "stellar performance" of £219.3m, Mr Dobson said.
He remained firmly upbeat, however, pointing to the bank's 32 per cent return on capital and its £62.9m dividend to Deutsche. While pre-tax profit had fallen from £235.8m to £150.2m, all investment banks had suffered from last year's bond collapse, he said, and Morgan's non-trading activities were powering ahead.
Mr Dobson rejected claims that Morgan was dragging its feet over building a new equities business in London for Deutsche.
He said: "We're not going to make a big acquisition in investment banking for the sake of it. There's no panicky feeling that we've got to have it [an equities operation] now."
Mr Dobson said that Deutsche had not set any deadline for building Morgan into a top world investment bank based in London. "We imposed a five-year timetable on ourselves," he said.
Mr Dobson and Morgan's chairman, John Craven, are in talks with a number of top executives already heading up investment banks, in order to recruit the right people for the new equities operation.
Mr Dobson said: "We are very pleased with the very high quality of people, who are already doing responsible jobs, who are interested in the opportunities offered by the Deutsche link with Morgan."
He said in the uncertain climate following Barings and the aborted merger talks between SG Warburg and Morgan Stanley, now was an ideal time to recruit.
"I think we can cherry-pick what we want. If we bought an operation we would get some of what we want and a lot of what we don't want."
- 1 Mario Balotelli: Staff at arson-hit Manchester Dogs' Home convinced Liverpool striker is behind five-figure donation
- 2 There is literally not a single woman in this iPhone 6 queue
- 3 Scottish independence: Tory revolt against 'devo max' grows as Rail Minister Claire Perry joins
- 4 Hitler’s former food taster reveals the horrors of the Wolf’s Lair
- 5 Scottish independence referendum: JK Rowling, Russell Brand, Nigel Farage and more react to the 'No' vote
Scottish independence referendum: Frankie Boyle reacts to nation's 'No' vote - 'To be fair, I've always hated Scotland'
Scottish independence referendum results: David Cameron pledges plans for 'English votes for English laws' by January
Scottish independence live: Scotland gives a clear 'No' in historic referendum - as it happened
Scottish referendum results: David Cameron set to unveil major devolution of powers to England
Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Scottish independence: The Queen breaks silence on referendum debate – as think tank warns of £14bn black hole if Scotland votes Yes
Archbishop of Canterbury admits doubts about existence of God
iJobs Money & Business
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...