Freshers in “Investment banking” (IB) are being paid £75-95k salary in London. Even a 10 years experienced IT professional will struggle to draw this salary. It’s serious money.
Why 👇
🎯 Because Investment banks earn huge profits per employee. Have a look at below numbers:
Goldman Sach's 2021 Revenues were ~$60 Billion and profits were ~$21 Billion with only 43,000 employees. So nearly 30% for 43k employees.
While TCS’s 2021 revenues were ~25 Billion and profits were only ~3 Billion with 500,000+ employees. So 12% for 5 Lacs+ employees.
🎯 So what do the Investment banks do to earn HUGE profits? 👇
(1).They raise capital for companies by getting them listed on stock exchanges i.e. IPOs (2).They raise debt for companies by issuing bonds (3).They help companies in Mergers and Acquisitions
They deal with BIG Money and make BIG money. That’s why BIG salaries.
🎯 So what are the different types of Jobs in Investment banks?
(1). Front Office (Client acquisition, relationship building, Trading, Research, Marketing) (2). Middle Office (Compliance, Risk Management, Regulation, Controlling Front office) (3). Back Office (Financial Modeling, IT, Reconciliation etc)
🎯 And what are the skills Required for Investment Banks jobs:
(1) Advanced Excel and being comfortable with numbers (2) Excellent Sales skill (mainly for front end role) (3) Sharp business acumen and industry knowledge (4) Understanding of economics (5) Great communication skills
