Investment bankers in Asia are preparing for their most lucrative bonus season since the pandemic-fueled boom of 2021, with UBS, Citigroup and Morgan Stanley reportedly planning average increases of around 20 per cent. People familiar with the banks’ plans told the Post that the payout reflects a year of robust dealmaking, as stock and bond markets in Hong Kong, mainland China and Taiwan roared back to life in 2025.
The surge in bonus expectations comes on the back of a marked rise in fundraising activity, particularly on the Hong Kong Stock Exchange. Data from the London Stock Exchange Group show that 114 firms raised US$37.22 billion on the exchange’s main board last year—a jump of 229 per cent from 2024 and the highest level since 2021, when fundraising hit US$42.97 billion. The wave of IPOs and follow-on offerings has reinvigorated investment banking revenue across the region, and bankers are now set to be rewarded accordingly.
A key driver behind the increased payouts has been the revival of initial public offerings, as well as a steady flow of bond issuances and share placements used by companies to fund expansion. Robert Lee Wai-wang, a Hong Kong lawmaker and chairman of Grand Finance Group, said that fundraising momentum is expected to persist into 2026, with more than 300 companies still waiting to list in Hong Kong. “Fundraising on both stock and bond markets was strong in 2025, which boosted investment banks’ revenues and allowed them to increase bonus payments for the investment bankers,” Lee said, pointing to a broad-based rebound in capital markets activity.
Within the banks, the most substantial pay increases are expected to land with Greater China teams, reflecting the region’s outsize contribution to overall revenue. Sources told the Post that investment bankers and traders focused on Hong Kong, mainland China and Taiwan would receive larger bonuses than their counterparts elsewhere in Asia, in line with the region’s stronger performance. Despite the expected increase, sources stressed that the bonuses will still fall short of 2021 levels, when capital markets activity reached an even higher peak.
Citi has emerged as a standout performer, with its Asia-Pacific investment banking revenue last year hitting its best level in over a decade, according to Dealogic. The bank helped clients raise more than US$250 billion from global capital markets in 2025, and its global investment banking revenue rose to US$1.3 billion in the fourth quarter—up 38 per cent from a year earlier. The growth was driven largely by a 35 per cent jump in investment banking fees, according to Citi’s financial statement.
UBS, too, played a central role in major deals across the region. One source said the Swiss bank planned to increase bonuses for its Asia investment banking staff by 15 to 20 per cent compared with the previous year. UBS served as a joint placing agent for China’s leading electric vehicle maker BYD’s US$5.05 billion share placement in March, a deal that underscored the bank’s continued influence in the region’s capital markets.
Morgan Stanley also benefited from the surge in high-profile listings. The bank was part of the syndicate that arranged the US$5.3 billion IPO of Contemporary Amperex Technology, the world’s largest EV battery maker. The listing, completed in May, became the biggest IPO in Hong Kong and the second-largest globally in 2025. Morgan Stanley’s investment banking revenue rose to US$2.41 billion in the fourth quarter, up from US$1.64 billion a year earlier, according to its results released on January 15.
Despite the broad upswing, the bonus increases are not being distributed evenly. Sources said that the size of individual bonuses will vary significantly based on performance, with specialists in technology and electric vehicle sectors expected to receive the largest rewards. Meanwhile, non-investment banking staff—such as those in back-office functions—did not see significant bonus growth, reflecting a continuing divergence in pay between revenue-generating teams and support roles.
As investment banks prepare to finalize their year-end compensation, the looming question is whether the 2026 pipeline will sustain the momentum. With a long roster of companies awaiting listing and a continued appetite for debt and equity fundraising, bankers may once again find themselves in a highly competitive bonus season. But the widening gap between top performers and support staff suggests that the wealth generated by the capital markets rebound will continue to be concentrated in the hands of those driving the deals.
