Investment banking analysts are responsible for performing financial and valuation analysis, researching and recommending new investment opportunities, and monitoring financial markets on behalf of the bank’s clients to generate trading ideas.
A strong work ethic, excellent attention to detail, and the ability to pay close attention to the numbers are all essential traits of an analyst who wants to have a successful career in investment banking.
Learn more about the investment banking analyst’s salary, job description, and other requirements below.
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What Does an Investment Banking Analyst Do?
Investment banking analysts provide support to investment bankers in the form of financial analysis, modeling, and research.
They work with clients to identify and assess opportunities, provide advice on transactions, and help to win new business.
Investment banking analysts also work on the bank’s internal deals.
There are two main types of the analyst:
Junior Analysts
Junior analysts perform analytical tasks for a team, typically within one area of focus, such as healthcare or media.
Associate/Senior Level Analysts
Associate/Senior level Analysts do more complex analytical tasks across different focus areas such as mergers & acquisitions (M&A) or corporate finance.
This profession has a lot to learn, including quantitative analysis skills and strong verbal and written communication skills.
The typical day-to-day routine is demanding but rewarding.
Investment Banking Analyst Job Description
An investment banking analyst is responsible for supporting the investment bankers in various activities such as market research, financial analysis, and developing presentations.
They also play a vital role in the deal-making process by helping to prepare pitch books and other materials.
In addition, analysts may be involved in due diligence or roadshow preparation.
The job of an investment banking analyst is very demanding and can be pretty stressful. But it can also be gratifying, both financially and professionally.
Investment Banking Analyst Requirement
Educational Requirements
A bachelor’s degree is required for most entry-level jobs in investment banking.
Many banks require applicants to have a degree in a business-related field, such as finance, accounting, economics, or business administration.
Some banks may prefer candidates with an MBA or other advanced degrees.
Investment banking analysts typically have one to three years of experience working in the financial industry before being promoted to an analyst position.
Training & Experience
Investment banking analysts typically have a four-year degree in business, economics, or finance.
Many have experience in customer service, sales, or other related fields.
The job requires excellent analytical, communication, and mathematical skills.
Working knowledge of financial software programs is also helpful.
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Skills Requirements
To be an investment banking analyst, you must have excellent analytical, research, and financial modeling skills.
Strong written and verbal communication skills are also necessary, as you will present your findings to clients and senior bankers.
You should also be able to work well under pressure and meet deadlines.
A bachelor’s degree in business, economics, or finance is typically required.
Investment Banking Analyst Salary – What You Will Make and Why
The average salary for an investment banking analyst is $97,000 per year.
You will be earning because your education is valued. When you are an investment banker, you will make money off the success of your company’s deals that you were responsible for researching.
There are many positions, some involving higher pay than others, such as vice president and chief investment officer.
The former earns about $170,000 while the latter earns about $200,000 annually.
The Benefits of Being an Investment Banker
A career in investment banking can be very lucrative. Investment bankers typically make a lot of money and have the potential to earn even more through bonuses and commissions.
The job also offers other perks, such as working in a fast-paced environment, traveling, and meeting new people.
Investment banking can be a great career choice for those interested in finance who want to make a lot of money.
Which Investment Bank Pays Analysts the Most?
JPMorgan Chase & Co. pays its investment banking analysts the most, with an average salary of $85,000 ..per year.
Goldman Sachs follows that at $80,000 and Citigroup at $78,000.
But it’s not all about the money.
Investment banking is one of the most demanding jobs, requiring long hours and intense pressure.
So why do people do it? For some, it’s the challenge. For others, it’s the chance to work on complex financial problems. And for many, it’s the lure of the big bucks.
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Conclusion
An investment banking analyst’s salary can range from $60,000 to over $100,000 per year.
The job description involves working with clients to identify their financial needs and advising them on how to use their money.
Investment bankers typically work for banks, but several independent firms also offer these services.
The work can be challenging and demanding, but it can also be gratifying.