The World's Top 10 Investment Banks

Investment banking is a stream of banking that primarily focuses on capital financing for
global and local businesses, individuals and even governments. These diversified finance
requirements can be in the form of equity/debt IPO, bonds offering, mergers and acquisitions,
portfolio management, etc. (See Related: Information and Advice on Investment Banking)
How are investments banks ranked? While there can be several criteria, the easy ones to look
at are the revenue numbers, global reach, employee headcount, income, etc.
This article lists the top 10 full service global investment banks, with a brief introductory
description and recent income details of each, based on a combination of the abovementioned parameters. Although investment banks have a lot more functions (like retail
banking) which may not necessarily fall within investment banking space, the list below
indicates the top rated banks and their numbers as a whole. Details specific to investment
banking division are included, based on available data.

Goldman Sachs (GS): One of the oldest banking firms founded in 1869 and
headquartered in New York, GS offers a wide range of services spread across four divisions investment banking, institutional client services, investing and lending and investment
management. Goldman Sachs reported net revenues of $34.210 billion for 2013, of which
investment banking division contributed $6 billion. Other divisions revenues were higher,
but maximum percentage growth was in the investment banking space (around 20% compared to 2012). Earnings per share (EPS) were $16.34.

JP Morgan Chase (JPM): One of the largest investment banks, JPM

Chase reported net revenues of $96,606 million, of which investment banking revenue
contributed $1,700 million. EPS was $4.39. The firm has $2.4 trillion in assets and $211.2
billion in stockholders equity and operates in 60 countries with more than 260,000
employees with a diversified set of services. Apart from investment banking, it also operates
in small business finance, international banking, transaction processing and private equity.

Barclays (BCS): Founded in 1896, the London, UK based investment bank hit the
recent headlines for allegations about rigging of London interbank rates and news about huge
number of job cuts globally. Backed by a strong workforce of 139,600 employees
globally, reports indicate total income of 28,444 million of which the investment banking
segment contributed to 10,733 million a segment decline of 9% compared to previous
year. Overall, EPS was 3.8 pence. Along with investment banking, it has a strong presence in
retail and commercial banking and card processing business.

Bank of America Merrill Lynch (BofA-ML): The large entity formed by erstwhile
Merrill Lynch being taken over by Bank of America following the 2008 financial crisis,
offers a wide array of banking services including investment banking, mortgage, trading,
brokerage and card services. Operating in 40 countries across the globe with total revenue of
$89,801 million, the investment banking division contributed $6,126 million (up from $5,299
of 2012). The overall EPS was $0.94 for 2013. (Report)

Morgan Stanley (MS): Founded in 1935 and headquartered in New York USA, the
global firm employs 55,794 employees spread across multiple countries. It reported net

revenue of $32,417 million, of which the investment banking segment contributed $5,246
million. EPS was $1.42. Apart from the usual capital raising, M&A, corporate restructuring
services, the firm also offers diversified services like prime brokerage, custodian, settlement
and clearing, etc.

Deutsche Bank (DB): Based in Germany and listed on XETRA stock exchange,
Deutsche Bank reported a net revenue of EUR 31,915 million. One of the largest financial
services firms of Europe, DB specializes in the cross border payments, international trade
financing, cash management, card services, mortgage, insurance and the usual investment
banking stream. Deutsche has a global presence with operations in 71 countries.

Citigroup: Tracing its roots back to the origin of Citibank in 1812, Citi today has
251,000 employees with business and operations in 160 countries. Of the total revenues of
$76,366 million reported for 2013, contributions from investment banking rose 8% from the
prior year to $4,000 million. EPS was $4.35. The bank has a strong presence in investment
banking, investment management, private banking and card processing streams.

Credit Suisse (DHY): With a net income of CHF 2,131 million and EPS of 1.22 in year
2013 (report), the Zurich Switzerland based Credit Suisse group founded in 1856 today
employs 46,000 members across the globe in over 50 countries. Apart from the regular
investment banking business, it also has presence in taxation and advisory, structural lending,
real estate leasing and investment research services.

UBS: Another Swiss investment firm founded in 1862 and headquartered in Zurich,
UBS had a net income of CHF 27,732 million and EPS of 0.83 CHF in the year 2013
(report). The firm has a strong workforce of more than 60,000 employees across the globe
with majority of them in US and Switzerland. The firm specializes in services to high net
worth and ultra-high net worth individuals, in addition to the investment banking, private,
retail and commercial banking streams.

HSBC: Another London based financial powerhouse founded in 1865 with operation in
75 countries serving 54 million global customers through 254,000 employees, HSBC offers a
wide variety of services ranging from forex, leasing, M&A, card processing, account
services, investment banking and private banking. Revenue totaling $ 64,645 for year 2013,
EPS was 0.84 USD (report).
The Bottom Line
The above list does not rank in any particular order. Apart from the above, there are other
institutions - like Nomura, Warburgs, BNP Paribas, RBS, Wells Fargo, etc. - which too are
large sized financial firms operating in investment banking space at regional and global
levels.
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