Bonuses are set to slump at Goldman Sachs from £316,000 per person in 2006 to £200,000 as the credit crunch starts to bite said the City firm.

The bank, which is the world’s most profitable, said the bonus pot had shrunk by more than a third since late 2006.

Goldman Sachs has so far escaped the sub-prime mortgage crisis relatively unscathed but analysts are predicting other city banks to fare much worse.

The bank also announced that its first quarter profits have halved to £748m compared with last year.

The news comes after the Centre for Economic and Business Research warned that financial firms expected to slash 10,000 jobs in the city.