Hoare Govett, the UK corporate broking arm of ABN Amro, made a profit of around £80m (&euro127m) before paying out bonuses last year on the back of a spectacular flow of new issues and a high volume of trading by its clients.

The corporate broker, ranked second in the UK after Cazenove by the number of clients, is thought to have made profit levels nearly double its target budget. Hoare Govett, run by Peter Meinertzhagen, employs just 70 people. Many of the top producers were paid substantially improved bonuses to reflect last year's strong performance. Business so far this year is, however, slack. Cazenove, which is planning an IPO within the next two years, is also understood to have enjoyed a highly profitable year, making as much as £150m in profit. The corporate broker is due to incorporate in April, when it will place 10% of its shares with institutions.