A fresher in this field can expect an average salary of around Rs.8-10 LPA excluding compensations. As you rank up in the hierarchy and reach the level of a Managing Director you can easily earn up to Rs.80-90 LPA and this can reach even more depending on the type of company you work for and your compensations.
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Who is an Investment Banker?
An investment Banker is appointed by a financial institution and is mainly responsible for raising funds for firms, governments, or other entities. They serve as a medium between investors and organizations that are seeking funding. Investment Bankers can also have the government as one of their clients.
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What does an Investment Banker do?
The work of Investment Bankers can pretty much be summed up as providing assistance to organizations and wealthy individuals in order to maximize their money.
An Investment Banker’s work can be further divided into two categories – assessing the financial aspects of a company and assisting them in achieving its desired financial goals. They analyze the complete financial situation of the company along with capital requirements and prepare a roadmap to reach their objectives.
Usually, a company provides essential financial data to an Investment Banker. The Investment Banker may create a strategy that includes trading stocks, selling bonds, acquiring debt, or a combination of these depending on the company’s financial health and goals.
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Investment Banking Skills
To increase the chances of being a good Investment Banker and outshine the competition. An IB must possess these Investment Banking skills apart from financial knowledge:
Communication
A major part of their job involves communicating with clients, potential investors, and their team members. An Investment Banker is expected to explain complex financial concepts to customers and other stakeholders in a simplified manner.
Having strong verbal communication skills can heavily impact their professional life, the more they get comfortable while interacting with clients, the greater the chances of convincing them. Additionally, having professional written skills will help in drafting more professional emails and creating influencing presentations.
Analytical Skills
A job as an Investment Banker involves crunching lots of numbers, they collect, evaluate, and analyze the data to make important decisions.
The hiring process involves lots of analytical problems, recruiters always prefer candidates with strong analytical skills.
Strong analytical abilities can assist in absorbing new information, managing a project successfully, making wise judgments, and achieving corporate objectives. Investment banking is all about agility and intellectual curiosity.
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Discipline
Working hours are a major headache for Investment Bankers, they have to work for as long as 12+ hours when deadlines are around.
Candidates that work hard, diligently, and with self-discipline can operate efficiently in challenging settings without missing deadlines.
Investment Bankers, despite being part of a team, are accountable for solo duties that need discipline and self-motivation.
Resilience
With strict deadlines, long workdays, and huge stakes, Investment Banking is a demanding profession. Possessing a high level of personal resilience will help you finish your work quickly and without being overwhelmed.
Resilience helps you balance both professional and personal responsibilities in a demanding environment by strengthening your sense of self-worth and confidence.
Interpersonal Skills
Investment Bankers must possess certain qualities in order to succeed in their positions, including an optimistic outlook and the capacity to handle difficult clients’ expectations in high-stress situations.
Investment Bankers deal with a variety of people as part of their work responsibilities, including department heads, team managers, customers, investors, and other stakeholders.
A strong set of interpersonal skills can help you succeed in your job and strengthen professional connections.
Leadership Skills
Investment Bankers typically begin their careers as junior analysts. Depending on their leadership and management ability, individuals can rise to greater responsibilities like team leaders and senior investment advisors as they gain experience.
Demonstrating your leadership abilities and accepting responsibility for your team’s work is a big advantage that can help you advance in your profession.
Investment Banking Salary Based on Their Designation
Let’s discuss various job profiles along with the average salaries they are offered in India:
- Analyst – The Pay scale for Investment Banking Analysts in India can vary from Rs.2.3 lacs per year to Rs.25.5 lacs per annum. However, the average Investment Banking Analyst’s salary falls around Rs.12 lacs per annum.
- Associate – Average salary for an Investment Banking Associate in India is found to be around Rs.9 lacs per annum with the highest salary going up to Rs.30 lacs per year.
- Vice President (VP) – VPs enjoy pretty high salary figures along with some great compensation. The average salary for a Vice President is around Rs.39.6 lacs per annum with the highest package going up to Rs.51 lacs.
- Managing Director (MD) – An entry-level Managing Director with 1-3 years of experience earns around Rs.55 lacs per year in India. After 8+ years of experience, the salary can jump up to Rs.1.5 Cr per annum, with an average annual salary ranging around Rs.90 lacs.
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Factors affecting Investment Banker Salary
We just discussed the average salary of an Investment Banker in India, but this salary can vary depending on the below-mentioned factors:
Skills
Skills possessed by an IB directly impact the amount of money they earn. Having good skills will not only make you ahead of the competition but also make your good presence in the market.
Financial Analysis, Financial Modelling, and M&A are a few of the skills one must have for better recognition in this competitive field.
Experience
It is a brainer that, more experience means more promotions and thus, a high pay scale. Someone with good experience will get more recognition in the industry compared to someone who just started.
Taking a look at the stats, entry-level Investment Bankers tend to earn around 34% less than the average national income. Whereas, highly experienced individuals can earn even 219% more.
With less than one year of experience, an Investment Banker can earn around Rs.6.8 lakh per annum in India. With an experience of 1-4 years, the average salary is found to be around Rs.9 lakh a year.
Individuals with 5-9 years of experience can earn around Rs.20 lakhs per year as an Investment Banker. The average salary can reach up to Rs.30 lakhs per annum for someone with 10+ years of experience.
Company
The company in which one is employed plays the most vital role in determining your pay cheque size. Big firms offer not just good money but great job security too.
Morgan Stanley, Goldman Sachs, and IBM are the largest Investment banks around the world.
Location
Because there is a greater need for Investment Bankers in some cities than in others, your location can really affect how much money you make as an Investment Banker.
The average income of an Investment Banker in Mumbai is currently more than Rs. 18 LPA, making it the best city in India for Investment Bankers.
In New Delhi and Pune, Investment Bankers earn 4% more than the average salary.
In Chennai, Investment Bankers get the lowest salary (63.6% less than the average), whereas in Bangalore the percentage for average low salary is 29.8%.
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Investment Banker Salary in other Countries
Salaries for Investment bankers vary from nation to nation. Let’s try to find how much one can expect to earn in the US, UK, Canada, and UAE.
Investment banker salary in the United States
The US can be a dream country for Investment Bankers as they get the highest possible pay scale compared to any other country. The base starting salary for analysts is $75K a year excluding bonuses.
Associates having a base salary of $100-$120K can get bonuses worth $80-$130K per year. The Vice president’s pay scale can reach a whopping $220-$400K per year inclusive of all compensations over their base salary.
Reaching to post of Managing Director is the dream of every Investment Banker because they can earn up to $10 million per year. With the base salary being around $300K-$1M, the bonuses are pretty high at $200K-$10M per year.
We just broke down the salary into two parts which are base salary and bonuses. For senior Investment Bankers, the bonuses can be way high compared to their base salary.
A bonus earnt by an IB can be either in form of stock or deferred compensation which they just can’t simply take home. The salaries discussed above are not always similar and depend on various factors.
| Levels | US |
| Analyst | $135,000-$200,000 |
| Associate | $180,000-$250,000 |
| Vice President | $220,000-$400,000 |
| Managing Director | $200,000-$10,000,000 |
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Investment banker salary in the United Kingdom
In London, the base salary for an analyst is found to be £50K per year with the average bonus being around £30-£35K.
Investment banking associates can earn a good salary ranging from around £80-£120K per year with bonuses falling in the range of £120-£220K.
Vice presidents get paid around £140-£160K with extra bonuses worth £250-£350K each year. Managing directors can earn millions of pounds every year.
| Levels | UK |
| Analyst | £80,000-£110,000 |
| Associate | £120,000-£220,000 |
| Vice President | £250,000-£350,000 |
| Managing Director | £1.1 million> |
Investment Banker Salary in Canada
Compared to the United States, the Investment banking industry is quite small, less structured, and differently focused in Canada. However, working hours are quite similar to other countries with developed markets.
The average salary ranges from C$42K-C$190K per year with bonuses ranging from C$2K-C$76K.
Based on a survey, Investment Bankers with less than 5 years of experience earnt bonuses worth C$63K which is quite less when compared to the US.
| Levels | Canada |
| Analyst | $63,000 |
| Associate | $110,000 |
| Vice President | $140,000 |
| Managing Director | $1,000,000 |
Investment Banker Salary in UAE
Dubai is considered to be a city of opportunities, the Investment banking industry is growing at a high rate. The major reason is the number of billionaires living in Dubai.
Starting salary for an analyst is found to be around 312205 AED.
The hourly pay range for analysts and associates ranges from 91 AED to 128 AED.
Investment banking Vice presidents can earn up to 440760 AED per year, whereas the Managing director sits top on the pay scale hierarchy with a salary of 1101900 AED each year exclusive of bonuses.
| Levels | UAE |
| Analyst | 312205 AED |
| Associate | 367300 AED |
| Vice President | 440760 AED |
| Managing Director | 1101900 AED |
Investment Banker Salary in India
The salary of Investment Bankers in India is comparatively less when compared to other developed markets. But we should also take into consideration the factor of living standards which is also low in India.
The average base pay for analysts ranges between Rs.5,23,000-Rs.16,14,000 per annum. For associates, the average base pay is around Rs.12,74,000 and can reach up to Rs.25,00,00 depending on the experience.
Vice presidents can earn up to Rs.46,64,000 per year and their compensation ranges between Rs.19,80,000 to Rs.56,67,000.
| Levels | India |
| Analyst | < ₹11,00,000 |
| Associate | < ₹19,35,000 |
| Vice President | ₹19,80,000 – ₹56,67,000 |
| Managing Director | ₹55,00,000 – ₹1,50,00,000 |
Seeing the salary makes you curious to know more, then go through the Types of Investment Banking blog.
Investment Banker Salary in top MNCs
Almost every company pays good money to Investment Bankers, but there are few top banks who spend a lot of money on their employees while making sure to hire the best talent available in the market:
Below mentioned are a few of those high-paying banks:
Goldman Sachs
Goldman Sachs is one of the oldest and best Investment banks in the world. The company provides banking and financial management services to businesses, governments, financial institutions, and individuals.
The investment banking division provides high-quality strategies and financing solutions for acquisitions, mergers, and other transactions.
An analyst working at Goldman Sachs makes around Rs.21 lakhs per annum with an average salary ranging between Rs.10 lakhs to Rs.35 lakhs a year.
JP Morgan Chase
This giant American bank is one of the leading providers of financial services across the globe with a market value of $2.6 trillion.
JP Morgan is a pioneer in the fields of investment banking, Asset Management, commercial banking, and the processing of financial transactions.
In India, an associate working at JP Morgan Chase gets an average salary of about Rs.29 lakhs per annum. Whereas, the average salary range falls around Rs.13 lakhs to Rs. 45 lakhs per year.
Morgan Stanley
Morgan Stanley is also an American MNC that provides financial services.
As a global leader in financial services, the organization assists individuals, businesses, and governments in generating and managing revenue in order to reach their financial goals.
The average annual compensation of an investment banking associate at Morgan Stanley is 13.6 lakhs and can range from 6 lakhs to 51 lakhs.
Conclusion
In this blog, we discussed the salary of an Investment Banker in India as well as in other countries. There are many factors that determine the salary of an Investment Banker such as the company in which one is employed, the experience they have, the skill set they possess, and their working location.
After reading this blog, you should now have a brief idea about the career of an Investment Banker and the financial perks they enjoy.