UK banks gender pay gap reports begin to roll in

A handful of major banks report gender pay gaps ahead of April deadline.

By Jonathan Watkins

The gender pay gap reports from banks in the UK are steadily being released ahead of the 4 April deadline.

Most major banking institutions however, are not separating their securities services businesses from the rest of their operations.

All PostsThe exception to this so far has been BNP Paribas, which reported its securities services figures individually as it is a separate legal entity.

The custodian’s results showed a lower percentage than most other banks with a mean hourly pay gap of 22.9%.

The proportion of each gender receiving a bonus showed 88.6% of women collecting one, while 89% of men did.

“Being an inclusive and diverse business is critical to our success,” said Patrick Hayes, regional head of UK, Middle East & South Africa, BNP Paribas Securities Services, in the report.

“Diversity fosters better decision making, enriches our talent pool and drives innovation.

“We already have a number of targeted programmes and initiatives underway to increase the number of women in senior roles and are committed to making progress in this regard.”

The French bank also outlined a number of future initiatives it is undertaking in order to reduce the gender pay gap, including making it easier for women to identify internal opportunities.

BNY Mellon’s disclosable median pay gap is 18% which has reduced from 2016 when the gap was 22%.

“A pay gap is likely to persist until there is a more balanced representation of men and women at every level in the organisation but particularly at more senior levels,” said Hani Kablawi, CEO of global asset servicing and chairman of EMEA, BNY Mellon.

“The pipeline of future female leaders at BNY Mellon is growing and in 2017, 46% of all hires in the UK were female.”

Goldman Sachs reported a mean average pay gap for hourly pay of 55.5%, while HSBC’s was 59%.

In the 30% range of the mean pay gap was Mizuho International, which reported a gap of 35.3%, and Standard Chartered where women’s hourly rate is 30.4% lower.

Deutsche Bank also reported a mean gap in hourly pay of 36.1%, while it’s median was 27.6%.

“The good news is that not only this year, but in coming years, Deutsche Bank, along with other UK employers is going to have to produce these numbers so we can monitor our own progress and versus our peers,” said Tina Lee, deputy chief executive, UK, Deutsche Bank, in the report.

“Clearly, we have a lot of work to do and the gender pay gap has to be narrowed, but certainly I think there is an acknowledgement that all the senior leaders of the bank simply have to do better.”

In January this year, Citi released its numbers for the US, UK and Germany showing a gender pay gap of just 1%. However, at the time of publication the bank had not yet disclosed its figures for the UK separately.

Overall UK figures, reported from the Government Equalities Office currently show that 77% of firms have a median gender pay gap in favour of men, 8.7% have none, and 14.3% in favour of women.

So far of the results we’ve analysed, all banking institutions have fallen into the 77% group.

Organisations with 250 employees or more must report on their gender pay gap by the April deadline.