News Summary
New York’s financial industry anticipates record bonuses as profits are projected to exceed $60 billion by 2025, thanks to a significant increase in trading revenues. This positive forecast follows a notable rise in compensation expenses and reflects the growing health of the securities sector. Major financial firms such as Goldman Sachs and JPMorgan are experiencing robust growth as they adapt to market changes. However, potential job declines loom on the horizon, but overall optimism persists regarding the industry’s future contributions to New York’s economy.
New York is set to witness record bonuses for Wall Street bankers this year as profit projections soar. The state Comptroller, Thomas DiNapoli, forecasts that the financial industry could see profits exceeding $60 billion by 2025, an increase from the $49.9 billion earnings reported for the previous year. The promising outlook comes on the heels of a notable 10% rise in compensation expenses during the first half of 2024.
In the first six months of this year, profits for the 130 firms on the New York Stock Exchange reached $30.4 billion, largely fueled by a striking 73.4% increase in trading revenues, along with gains from commission income, AI-related deals, and supervisory fees. Major financial institutions such as Goldman Sachs, JPMorgan, and Citi experienced significant growth in their trading units as investors maneuvered their portfolios to adapt to market conditions.
Last year, Wall Street bonuses achieved a record high of $47.5 billion, averaging $244,700 per employee. The total compensation, which includes salaries, also rose by 7.3%, leading to an average of $505,630 per employee. Compensation consultant Johnson Associates predicts bonuses for fixed-income traders could increase by 10% to 20%, while equities traders might see increases of up to 30%.
Despite uncertainties posed by global trade tensions and a sluggish start to 2024, predictions for Wall Street’s financial performance remain upbeat. The employment sector in New York City’s securities industry reached a historic high with 201,500 jobs in 2024, surpassing pre-dot-com bubble levels. However, preliminary data indicates a potential decline of around 3,000 jobs in 2025, which might reflect past trends where similar job dips have reversed.
New York continues to lead the nation in securities jobs, contributing significantly to state tax revenue, which in turn supports essential services such as housing, transportation, and public services. As of 2024, the total employment in the state’s securities industry stands at 217,800 people, marking a 9.3% increase since 2019. California ranks as the second-largest state for securities jobs, employing 102,600 positions.
DiNapoli emphasized the importance of the financial sector’s overall health in sustaining funding for crucial services in New York. Concerns loom regarding the future stability of the financial industry in light of political pressures, particularly with a left-wing candidate, Zohran Mamdani, campaigning for mayor. Despite these challenges, DiNapoli remains cautiously optimistic about future bonuses and profits, with hopes contingent upon broader economic influences.
In summary, Wall Street’s robust financial performance not only promises lucrative bonuses for workers but is also integral to New York’s economy, supporting vital public services. As the 2025 profit forecast suggests, the financial industry’s success may continue to benefit the broader community, though potential job fluctuations and political shifts warrant close attention.
Deeper Dive: News & Info About This Topic
- New York Post: Wall Streeters Poised to Get Record Bonuses in 2025
- Wikipedia: Wall Street
- Bloomberg: Wall Street Bonuses Expected to Hit Record
- Google Search: Wall Street Bonuses
- Reuters: Wall Street Bonuses Jump 32%
- Encyclopedia Britannica: Finance
- Pensions & Investments: Wall Street Profits
- Google News: Wall Street Bonuses 2025
Author: STAFF HERE NEW YORK WRITER
The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.
