Banker's bonuses could be cut by 10% due to fears over Brexit and Donald Trump

Fears over Brexit and Donald Trump's trade policies could lead to a clamp down on pay

Bankers' bonuses could be up to 10% lower this year as a result of fears about Brexit (Getty)

The economic uncertainty following the UK’s vote to leave the EU and the possible fallout from the trade policies of US President-elect Donald Trump could hit banker’s bonuses in Britain.

Bonuses could be cut by 10 per cent in the next few weeks amid fears over the health of the Eurozone economy, Brexit and Mr Trump’s protectionist approach to trade policies, according to industry experts cited by the Times.

Jon Terry, market leader of PwC’s global Financial Services HR Consulting practice, said that city workers’ bonuses could be down “possibly by 10 per cent in aggregate” and some lower performing bankers could even see bonuses down by 25 per cent if there performance has been average.

Financial institutions are also struggling to win back the public’s trust since the 2008 financial crisis.

In a separate interview Mr Terry said: “We haven’t seen an end to various fines and compensation related to payment protection insurance and Libor. There are still billions of pounds being charged to the accounts.”

In July, when asked whether Brexit will cut into banker compensation in London, HSBC Holdings Chairman Douglas Flint warned: “Lower revenues and lower profits mean compensation will be lower”.

HSBC paid £2.3bn in bonuses last year while Barclays gave out £1.67bn and Lloyds handed over £354m.

The Brexit vote has already resulted in turbulent markets and may put a chill on investment.

Britain’s total M&A deals volume has fallen to about $177bn (£144.5bn), a steep drop from 2015, when more than $394.8bn (£321bn) of deals involving a UK company were struck, according to Thomson Reuters data.

There were just 1,355 domestic deals in 2016, which was the lowest in nearly two decades.