Who are the best bankers in the world? How do you measure a piece of string?
Courtesy of market intelligence firm Tricumen, there might be a measuring stick to use. Stacking up bank revenues in the first half of the year and dividing by the number of front-office Full Time Employees (FTE), Tricumen devises the comparative efficiency (or rather, revenue produced) of each bank’s bankers.
Based on Tricumen’s data, Goldman and JPM’s “Capital Markets” people (a wide net encompassing both investment banking and trading) are, by some margin, the best in the industry. On average, they produce 1.5 higher standard deviations more revenue than their peer group – way higher than closest competitors, Morgan Stanley and Wells Fargo, who are also strong performers but only produced 0.5 standard deviations more revenue, on average.
Morgan Stanley’s runner-up position is not a surprise, but Wells Fargo is. Data from (fellow) market intelligence provider Dealogic doesn’t put the bank on its global top seven for ECM, DCM, or M&A revenue (or even in the top ten for investment banking as a whole).
And yet Wells Fargo has by far the most efficient investment bankers in the industry, producing revenues two standard deviations above the average. That’s pretty big – a number of banks got closest (including Royal Bank of Canada and BofA) but none got up to one standard above the average.
In sales and trading, Deutsche Bank’s Fixed Income, Currencies, and Commodities (FICC) traders put up a valiant effort but were behind both Goldman and JPM’s. Morgan Stanley put up a similar fight for equities, with the same level of success.
The charts below show relative performance, measured by operating revenue per front office full-time employee. Banks are compared relative to a group average, in standard deviations from that average. The dashed circle indicates the average. Each dash on the lines eminating from the centre indicate half a standard deviation from the average.
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FAQs
Driven by a strong capital position and earnings strength, the company is expected to sustain current capital distributions. Superior Return on Equity (ROE): JPMorgan has an ROE of 17.97%, higher than the industry average of 12.19%. This shows that the company reinvests its cash more efficiently than its peers.
Which bank is better, Goldman Sachs or J.P. Morgan? ›
Both banks generate a sizable portion of revenues from market-making. However, Goldman Sachs is more dependent on such business. JPMorgan's revenue streams are a bit more diversified. JP Morgan has over three times the amount of assets as Goldman Sachs and generates over three times the net revenue.
How do you answer the question why banking? ›
Here are some helpful steps you can follow to respond to this question when you're applying for an investment banker position:
- Showcase your interest in the industry. ...
- Focus on how can you can be beneficial. ...
- Include your educational background. ...
- Offer some on-the-job examples. ...
- Highlight your strengths and skills.
Ex-Goldman Sachs helping train students/recent grads to secure jobs in banking - 90% placement rate to banks like GS, UBS and JP. These are the 10 hardest investment banks to get a job at in the world🌍👇 1. JP Morgan 2. Goldman Sachs 3.
What is the weakness of J.P. Morgan? ›
Weaknesses. Regulatory and Compliance Risks: As a highly regulated entity, JPMorgan Chase & Co faces significant compliance risks. The 10-K filing highlights the complexity of adhering to various laws and regulations, which can lead to increased costs and operational constraints.
What makes Goldman Sachs different from its competitors? ›
Unlike other investment banks, GS strategically positions itself as the “friend of corporations” and defends businesses against hostile actors. Corporate defense has historically been an integral part of the Goldman Sachs M&A franchise.
Which is the top No. 1 bank in the world? ›
Is it safe to bank with Goldman Sachs? ›
Marcus by Goldman Sachs funds are covered by FDIC insurance, which covers you for as much as $250,000 per depositor, per institution, in the event of a bank failure. How can you withdraw money from a Marcus savings account?
Which bank is more prestigious? ›
The Top 10 Most Prestigious Investment Banks for 2024:
Goldman Sachs & Co. Morgan Stanley. J.P. Morgan. Centerview Partners.
How to answer why JP Morgan? ›
Informal Tone:-
Well, I've always been interested in the financial industry and jpmorganchasecc.com in particular has a strong reputation and a wide range of opportunities for growth and development. I also appreciate the company's commitment to diversity and inclusion, which aligns with my own values.
Here are the TOP 15 Strengths that will allow you to STANDOUT in your job interview.
- 1) Ability to Multitask. ...
- 2) Effectively Work In HIGHLY Pressurized Situations. ...
- 3) Attention to Detail. ...
- 4) Ability to COLLABORATE. ...
- 5) Resourceful. ...
- 6) Empathetic. ...
- 7) Self Motivated. ...
- 8) Take Initiative.
Goldman Sachs is the highest paying bank overall - $398k in combined salaries and bonuses, on average. Goldman Sachs, which paid average salaries of $200k and average bonuses of $199k for 2023, was the highest paying bank we polled.
What is the easiest position in a bank? ›
15 entry-level jobs in banks
- Assistant manager.
- Personal banker.
- Security guard.
- Teller.
- Fraud analyst.
- Notary public.
- Assistant underwriter.
- Tax preparer.
If you work in an investment banking division (IBD), or pretty much any other sector of financial services, you are likely spend a healthy part of your day dealing with career-related stress. The working hours, the responsibilities, the external pressures to deliver consistent compelling results – they all add up.
What sets J.P. Morgan apart from other banks? ›
Exceptional Client Service
For more than two centuries, JPMorgan Chase has always been there for our constituents around the world. In the toughest of times when strong banks are needed the most, we never waver in our support, and we never lose sight of our main mission: serving our clients.
Why is J.P. Morgan the best bank? ›
The global behemoth seized the opportunities that volatility afforded, posting phenomenal growth.” At J.P. Morgan, clients not only benefit from specialists, but also—through their Private Bank teams—have access to the vast resources of the full firm.
What makes J.P. Morgan so good? ›
how faithfully we adhere to our core principles: delivering exceptional client service, acting with integrity and responsibility and supporting the growth of our employees. We are a leading global financial services firm with assets of $2.6 trillion and operations worldwide.
What distinguishes J.P. Morgan from competitors? ›
Overall, JPMorgan deals with industry competition in three main ways: By distinguishing itself in the marketplace primarily on the basis of its history and experience. By staying on the cutting edge of offering customer convenience and low-cost and cutting-edge services.
