blog Bonorum et Malorum

15 Surprising Stats About Investment Banking

Written by Fmi.Online

Many consider investment banking to be one of the most exclusive industries in the world. Yet, while some common facts such as its financial perks and long hours are well known, the industry’s innerworkings aren’t common knowledge. In this article, we delve into some of the lesser known and striking facts about investment banking:

The investment banking fees worldwide – the fees charged for various services such as advisory, M&As, raising capital and so on in the IB industry – stood at a massive US $80.5 trillion in the first half of 2021. This was $18 trillion higher than its value in the first half of 2020. Although this was its highest ever, due to its timeline, the value doesn’t yet account for Russia’s invasion of Ukraine, which has severely shaken the global economy.

JPMorgan bagged the largest investment banking revenue in the world, as of March 2022. It had clocked in a revenue of roughly $1.73 billion till that period. This made up 9.6% of the world’s investment banking revenue followed by Goldman Sachs at 9%. Further, all five of the top investment banks globally were American multinational investment banking firms. 

Since 2019, Goldman Sachs has been the largest merger and acquisition (M&A) advisor in the world. Last year, they led M&A transactions valuing nearly $1.9 billion. In addition, the global M&A volumes stood at $5.9 trillion in 2021, up from nearly $3.5 trillion in 2020.

Investment bankers are painted with the broad brush of being math and finance geeks yet that’s not always the case. This article points to the other crucial skills needed to become an investment banker. In fact, many IBankers come from a range of backgrounds. The more common attribute, though, is usually professionals who are willing and accepting of working in a demanding and high-pressure environment. 

Although it is believed that the top-ranked investment banks hire exclusively from Ivy League schools, an analysis of the LinkedIn profiles of the 13 top investment banks showed that 7.4% of U.S. university graduates who worked in banking went to an Ivy League college. In fact, while some banks’ had more than 20% of their employees from this premier university bracket, for JPMorgan Chase this number was 7.8%.

Barclays hired the highest percentage of Ivy League graduates of all 13 banks analysed above. Further, nearly 66% of Barclay’s workforce came from private colleges. This number was nearly 64% for Goldman Sachs and 41% for JPMorgan Chase. 

Investment banking analysts may work up to 100 hours per week at some firms. While this might be less than ideal for many professionals, in this article we share some tips on time and stress management to ensure a smoother career as an investment banker.

Investment bankers are widely known to take home the big bucks. Salaries (including bonuses) can range from $125,000 to $10 million. The lower end is for a first-year analyst while managing directors bag the highest of the lot.

HR firm Zippia assessed over 618 investment bankers resumes and concluded that the highest proportion of investment bankers (41%) preferred to stay at their job in IB for 1-2 years.

Although not technically a stat as much as an intriguing observation, former banker Henry Wong told Forbes that People don’t realize investment banking is primarily a ‘sales’ job. Like your neighborhood car salesman, a banker will say almost anything to get a deal done.”

At the entry-level, women’s representation in the North American financial services sector is slightly higher than men at 52%. However, the higher up you go on the corporate ladder, the more their representation falls. In the C-suite in the financial services workforce, white women made up only 23% of executives and women of colour – a mere 4%. The number from entry level to C-Suite for women representation fell by a major 80%

Within the financial services industry, banking was the poorest in terms of equality of racial representation. White individuals dominated this level of hierarchy both among men and women in banking. Here’s the breakdown:

Source: McKinsey

The financial services industry is reported to have supported employees at a higher rate than corporate America during and after the Covid-19 pandemic. In the 2021 edition of the Women in the Workplace study, 47% of women interviewed reported receiving increased support in the past year. The number, however, stood at close to 60% for women in the financial services sector. This included additional holidays, paid time off, emotional support etc.. 

Employees with female managers in the financial services domain were 50% more likely to say they received emotional support and 25% more likely to report that their manager helped them navigate work–life challenges.

India is home to hundreds of investment banks while multiple foreign investment banks are also set up here. Among the top ones are JPMorgan Chase, Goldman Sachs, Barclays, Morgan Stanley, Citi, Deutsche, HSBC etc. In 2021, India’s investment banking industry witnessed one of its best times, with investment bankers making Rs 2,200 Crore.

Conclusion:

More Articles

Investment Banking

The role of investment bankers in the financial world: what do investment bankers do, and why are they important?

Investment bankers play a critical role in the financial world by helping businesses and governments raise capital, facilitating mergers and acquisitions, and providing strategic advice on corporate restructuring. They are vital to the functioning of the capital markets, and their work helps drive economic growth and stability.

Read more

Is A Career As An Investment Banker For You?

A job as an investment banker comes with lots of perks, and a great salary. You work with smart people, get open doors and gain lots of experiences fast. Find out if investment banking is the right career choice for you today.

Read more
Investment Banking

How can you earn a six-figure salary at top investment banking firms without any experience in 2023

To earn a six-figure salary as a fresh investment banker, you need to work hard to get a full-time job at a top investment bank and maximize your bonuses. A strong educational background, relevant skill set, and investment banking internships can help you secure a job.

Read more

How you can get a front-facing role in a top investment bank without any experience in 2023

Learn how to get a front-facing role in a top investment bank without any prior experience. Understand what front desk jobs in finance are and the skills required, get the right qualifications, internships, network, and build the right skill set. Show your willingness and dedication to the role through internships, and make a good impression through networking.

Read more

What does an investment banking intern at top banks do on a daily basis?

An internship will involve working for long hours in a dynamic environment, with high standards for accuracy and work ethic. You must be aware of the practical workings of the industry to cope with your work

Read more
News

What are the latest investment banking internship hiring trends in 2023

To stay relevant and competitive, investment banks have adapted new hiring practices in the technology-dominated, post-COVID world. These hiring trends were visible across financial institutions. While in the previous calendar year institutes were worried about staffing and labour shortage, banks were predicting a long struggle for employees to continue to post the COVID-19 pandemic, according […]

Read more
Investment Banking

How to get the right investment banking certification

The lucrative growth prospects of investment banking make it a brutally competitive industry. Having done a relevant investment banking course improves your odds of breaking into the industry. However, investment banking courses come in different shapes, sizes and forms. The elementary investment banking courses provide students with an overview of the industry and its functions, […]

Read more
Investment Banking

What are the rarest skills the world’s top investment bankers are looking for?

Investment bankers are responsible for heavy corporate transactions like mergers, acquisitions, IPOs, fundraising, and investment advisory. A career in investment banking is demanding, highly competitive and challenging. The right skillset, however, can help you build a successful career in investment banking by making the job easier and more efficient. In this article, we will explore […]

Read more

How can you land an investment bank internship

Top investment banks offer investment banking internship programs, each year, hiring graduates to work for 3-4 months in their offices. Through these internships, interns get first-hand experience working in an investment bank, gain an opportunity to network with other bankers, and improve their resumes. More importantly, aspiring investment bankers can see if they have the […]

Read more
Interview Prep

What you might be lacking in your IB interview prep

Going through the fundamentals of finance, working on DCF calculations, and preparing financial models are some of the more obvious things that an aspiring investment banker prepares for before interviewing for a job at a top investment bank. But what about the subtle nuances that could determine whether you will land a job or not? […]

Read more
Our Courses are designed to boost your career

Launch your career with Fmi’s Learning Pathway

Choose a learning pathway that best meets your needs and ambitions. Not sure which Fmi learning pathway is right for you? Explore our CareerBuddy videos for help and advice.

Investment banking pathway

Investment banking pathway

Monthly Subscription
  • courses-clock60+ hours
  • courses-desktop9 courses

Investment banking offers many exciting career opportunities for students. From Financial Analysts to Investment Management, and Sales & Trading to a wide range of roles in infrastructure such as IT, Risk or Compliance. This pathway is designed to help you understand the investment banking industry, the roles investment banks are recruiting for, and most importantly, help you to develop the practical skills you need to get into the industry and your preferred role whether this be as part of a school leaver, intern or graduate program.

FMI Online Student join-student-img2 FMI Online Student
55,000+ students currently enrolled
Global markets pathway

Global markets pathway

Monthly Subscription
  • courses-clock70+ hours
  • courses-desktop10 courses

Global markets provide a range of important products and services to corporates, institutions and governments worldwide from executing trades and managing risk to providing quality research content. A key business area in all investment banks, global markets offers a wide range of career paths for students to consider across all functions and at all levels from school leavers to internships through to graduate programs.

FMI Online Student join-student-img2 FMI Online Student
85,000+ students currently enrolled
Asset management pathway

Asset management pathway

Monthly Subscription
  • courses-clock50+ hours
  • courses-desktop8 courses

The asset management industry is a global industry worth over 100 trillion US dollars. It plays a crucial role in managing the assets of retail and institutional investors, offering a wide range of exciting careers in doing so. If you’re looking to forge a career in asset management, our Asset management pathway is perfect for you. We help you build the skills all asset managers are looking for and explore everything you need to know about the industry and the wide range of roles available in the sector

FMI Online Student join-student-img2 FMI Online Student
100,000+ students currently enrolled