Investment banks are major financial institutions that offer specialist services like raising funds by issuing shares and facilitating mergers and acquisitions (M&A). Each transaction that an investment bank handles is done on a large scale.
For instance, if drinks company Diageo wanted to sell £8 billion worth of bonds to expand its business into Russia, it will approach an investment bank to assist with finding buyers.
Investment banking is a stream of banking that primarily focuses on capital financing for local and global businesses, individuals, and even governments.
These diversified finance requirements can be in the form of equity or debt IPO, bonds offering, mergers and acquisitions, portfolio management, etc.
We’ve enlisted the worlds top 10 investment banks:
JPMorgan Chase & Co (NYSE: JPM) is the large investment bank in the world, with a market share of about 9 percent and investment banking revenue of $7.2 billion in 2019. The company’s business areas involve investment banking, asset management, markets and treasury services, brokerage, private banking, securities, wealth management, and merchant and commercial banking.
The investment services cover all asset classes involving fixed income, equity, multi-asset solutions, alternative investments, and money market. JPMorgan was awarded as Best Investment Bank in the World, Best Investment Bank in North America and Best Investment Bank in the United States by Global Finance.
The Goldman Sachs Group (NYSE: GS) is the 2nd-largest investment bank in the world, with investment banking revenue of $6.8 billion. Headquartered at 200 West Street, New York City, it operates a network of branches and offices in all major financial centers worldwide involving London, Frankfurt, Paris, Tokyo, Dubai, Hong Kong, Singapore, Shanghai, Sydney, Zurich, Melbourne, Los Angeles, Toronto, San Francisco, Amsterdam, and Vancouver.
The company was named Best M and A Bank and Best Equity Bank by Global Finance. As of June 30, 2020, Goldman Sachs had a market capitalization of $71 billion.
Morgan Stanley is a global investment bank with over 60,000 employees and branches in 40 countries. Located in New York, it maintains its principal offices in major financial centers about the world involving London, Tokyo, and Hong Kong. It is active in the following business areas, Investment Management, Institutional Securities, and Wealth Management.
The total investment banking revenue of $6.2 billion in 2019 reduced by 5percent versus the prior year according to full-year earnings results. The company’s investment banking ranks #1 in global IPOs, global equity and global completed M and A. James P. Gorman is Chairman and Chief Executive Officer (CEO) of Morgan Stanley.
Bank of America
Bank of America Corporation is a multinational financial services provider offering a complete range of products and services involving investment and corporate banking, deposit, and mortgage products, personal and auto loans, trading, brokerage, insurance, credit cards, and other services.
The company’s total investment banking fees, excluding self-led deals, raised by 6 percent to $5.6 billion in 2019 from $5.3 billion in 2018. Bank of America rebranded its investment banking arm Bank of America Merrill Lynch to BofA Securities.
UK-based HSBC Holdings was founded in 1865 and has more than 39 million customers in 65 countries. Not only is it one of the top investment banks in the world, but it is also the big company in the U.K. (£117.6 B as of November 2019). It manages about $2.6 trillion in assets.
Services involve M&A, investment banking, and private banking. Brexit and trade tensions have impacted the company’s bottom line. At the end of 2018, HSBC reported revenue of $53.8 billion and a profit of over $15 billion, which was lower than expected.
It is a global financial service holding company with over 200 million client accounts. Citi’s Institutional Clients Group (ICG) provides investment and corporate banking products and services to corporations, governments, financial institutions, and high-net-worth individuals.
It is ordered in 5 groups: Corporate and Investment Banking, Capital Markets Origination, Markets and Securities Services, Treasury and Trade Solutions, and the Citi Private Bank. Revenue from investment banking, which is part of Citi’s Institutional Customers Group, was $3.8 billion in 2016.
Credit Suisse Group
It is one of the important investment banks and the world’s large wealth management firms with assets under management of CHF 1.345 trillion (September 30, 2017). It operates through 2 global divisions: Private Banking and Wealth Management and Investment Banking. The Investment Banking division provides securities products and financial advisory services to corporations, governments, institutional investors, and high-net-worth individuals.
It offers equity and debt underwriting, sales, and trading, mergers and acquisitions (M&A), divestitures, prime brokerage, capital raising, investment research, and other services. As of Mar 20, 2018, this bank had a market capitalization of about $46 B.
It is one of the large banks in Europe with total assets. It involves 5 corporate divisions: Corporate Banking & Securities (CB&S), Global Transaction Banking, Deutsche Asset, and Wealth Management, Private and Business Customers, and the Non-Core Operations Unit.
Corporate Banking and Securities (CB&S) is one of the world’s leading investment banks and fixed income powerhouses. Greenwich Associates placed this Bank’s global fixed income business first place based on market share.
It is one of the large banks by market value. It is ranked No. 1, 2, or 3 in the U.S. for most of its products and services.
The company has 4 major business groups: Community Banking, Wealth, Brokerage and Retirement, Customer Lending, and Wholesale Banking. Wells Fargo’s Investment banking fees were more than $2 billion in 2016.
It is an investment division of Barclays plc. It offers financial advisory, capital raising, financing, and risk management services to corporations, governments, and financial institutions about the world.
Investment banking fees got reached to $3.2 billion in 2016. Barclays was honored as the Most Innovative Investment Bank for equity-linked bonds (The Banker).
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