Bonuses of front-office investment banking staff in Europe will increase by an average of 10% to 20% this year, according to a survey by Armstrong International, the headhunter.

The rise follows a drop of about 30% in 2002 and is linked to improving business conditions in almost all areas. Zero bonuses at bulge bracket banks are a thing of the past, the report said. Big headcount reductions are over; however recruitment in 2004 will be modest.