THE boss of recruitment firm Hays today said there was still evidence that bankers were heading overseas as hiring in the sector fell around 10% and pushed its UK division to a £3m loss.

Chief executive Alistair Cox said the recruitment squeeze in the banking industry would persist for “some time” and had spread beyond the UK to markets such as Hong Kong as major players restructure their operations.

The recruiter’s results for the six months to December 31 come as the banking industry faces pressure from all sides, as it battles with volatile markets, weak consumer confidence, increased regulatory heat and criticism over pay.

The slowdown, which was behind a 1% drop in private sector fees which make up 78% of UK revenues, prompted Hays to close 12 UK outlets, cutting its total headcount by 4%, including a 2% drop in the number of consultants to 2,071.

The firm has two Liverpool offices in Tithebarn Street and Dale Street.

However, the wider group was supported by a strong performance overseas, particularly in Germany, leading to a 21% increase in overall operating profit to £63.1m and a 24% increase in pre-tax profits of £60.3m on net fees of £373.8m, a 15% increase.

The firm has also slashed its interim dividend by 55% to 0.83p, "a level that is more appropriately covered by current earnings and cash flow," said Mr Cox.

However, given the profit levels he said the results were good, adding: "Our diversification has again delivered great benefits with the international business growing net fees by 27%, and 14 countries growing by more than 20%."

But he went on: "The global economic backdrop became increasingly uncertain as the half progressed, and this continues to adversely impact confidence in some of our markets, especially global banking."