New York's Wall Street expects another record-breaking bonus year

[Financial News]  After handing out the biggest bonuses on record last year, Wall Street in New York is expected to receive even bigger bonus checks this year.
On the 6th (local time), The Wall Street Journal (WSJ) reported that major U.S. banks are expected to post combined net profits of more than $90 billion (about 120 trillion won) this year, buoyed by mergers and acquisitions (M&A), initial public offerings (IPOs), the artificial intelligence (AI) boom, increased market volatility and resilient consumer spending, which have generated huge profits in both investment banking (IB) and commercial banking.
As a result, total bonuses for securities-industry employees in New York State are also expected to rise further, overturning New York City's initial forecast of a 20% decline.
In 2025, Wall Street's average bonus was $246,900 (about 330 million won), while average total compensation, including salary and bonus, reached $561,770 (about 750 million won). Total bonuses also reached $49.2 billion, a record high that, adjusted for inflation, surpassed pre-2008 financial-crisis levels.
However, there are factors that could affect the ability to sustain this year's performance. The overall economic outlook remains uncertain amid geopolitical risks and an unstable bond market. In particular, the Federal Reserve System (Fed) recently raised its benchmark interest rate for the first time in several years, reflecting persistent concerns about inflation. The third-quarter results due next week from major large banks are expected to be a key test of the economy's future direction.
Meanwhile, the financial industry makes a critical contribution to tax revenues in New York City and New York State, so this strong performance is expected to provide a welcome boost to local finances. New York State budget officials previously estimated that bonuses in the financial and insurance industries would rise 7.3% this year.
Contrary to concerns in some quarters that high tax rates and political uncertainty would drive jobs away, employment in New York's financial sector continues to grow. According to New York State Comptroller Tom DiNapoli, the number of people employed in New York City's financial sector reached 207,400 last year, up 3.5% from the previous year, and about 5,300 additional jobs are expected to be added this year.
The gap with Texas, which has been challenging New York's status as a financial hub by touting the recent establishment of the Texas Stock Exchange (TXSE) and the expansion of its court and financial infrastructure, also remains. An analysis found that since 2019, Texas has added just 18,800 securities-industry jobs, compared with 24,300 in New York State, which continues to maintain its dominant position as the U.S. financial center.

[email protected] Yoon Jae-jun Reporter