Investment banks are large financial institutions that play a crucial role in moving money around the economy. Unlike traditional banks, an investment bank primarily helps in raising capital, as well as offers advisory services. A regular user may not require services of an investment bank, rather these banks target markets of high-net-worth individuals (HNIs) and growing companies. In case you are either of those two and need assistance, detailed below are the top ten investment banks.
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Top Ten Investment Banks
We have used several parameters, such as earnings, popularity, reputation, employee count and more, to come up with our list. Following are the top ten investment banks:
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HSBC Holdings plc
Founded in 1865, it is a London based financial organization that has more than 235,000 employees. It operates in 75 countries and serves more than 39 million clients. HSBC is the biggest bank in Europe and offers a range of services, including M&A, investment banking, forex, account services, private banking, card processing and more. It operates through four business groups – Retail Banking and Wealth Management, Global Private Banking, Commercial Banking and Global Banking and Markets (investment banking).
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UBS Group AG
Founded in 1862, it is a Swiss firm headquartered in Zurich. It was initially known as the Bank in Winterthur. Along with offering investment banking, private, retail and commercial banking services, this financial firm is known for providing services to high net worth and ultra-high net worth individuals. UBS has more than 66,000 employees and operates across all major financial centers in 50 countries.
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Credit Suisse
Founded in 1856, it is a Swiss financial organization that is headquartered in Zurich. It has a major presence in the U.S., as well as other major financial centers around the world. Credit Suisse has about $1.67 trillion in assets. It primarily operates through three divisions – International Wealth Management, Asia Pacific and Swiss Universal Bank. The company has more than 45,000 employees and operates in over 50 countries.
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Citigroup
Founded in 1812, it is an American financial services company. Citigroup is one of the Big Four banks in the U.S. and employs more than 200,000 employees. The bank reported revenue of $74.3 billion and net income of $19.4 billion for 2019. Citigroup is a systemically important financial institution and is on the list of banks that are considered too big to fail.
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Deutsche Bank
Founded in 1870, it is based in Frankfurt and holds about €1.3 trillion in assets. It operates through three primary divisions – Corporate and Investment Bank, Deutsche Asset Management and Private and Commercial Bank. This investment bank has more than 97,000 employees and serves more than 20 million customers. It has operations in 71 countries.
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Morgan Stanley
Founded in 1935, it is a popular U.S. investment bank. It has its headquarters in New York and branches in 40 countries. Morgan Stanley has more than 60,000 employees and has about $781 billion in assets. This investment bank operates through three main divisions – wealth management, investment management and institutions securities. The company had a rough time during the 2008 financial crisis, and was the biggest recipients of government aid (TARP).
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Bank of America Corporation
Founded in 1956, it is a financial services provider that offers a range of products and services. The product and services it offers include investment and corporate banking, insurance, personal and auto loans, credit cards, deposit and mortgage products, brokerage and more. Specifically, Bank of America Merrill Lynch is the investment banking arm of Bank of America. It is the second-biggest U.S. bank with $2.2 trillion in assets.
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Barclays
Founded in 1896, this bank holds around $1.94 trillion in assets. Headquartered in London, it is a big name in the UK. In the U.S., it has a major presence in New York. The company took a big leap in the U.S. investment banking space with the acquisition of Lehman Brothers in 2008. It has offices in 30 countries and employs over 20,000 people. According to Dealogic, Barclays’ investment banking revenue was more than $3.2 billion in 2019.
Founded in 2000, it is one of the biggest financial institutions globally. It primarily operates through two divisions. The Chase side is a business and commercial bank, while the JP Morgan brand focuses on investment banking. As per JP Morgan’s website, its main focus is on mergers and acquisitions. Other services that it offers are advisory services, capital raising and risk management. It has about $2.62 trillion in assets.
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Goldman Sachs
Founded in 1869, it is among the oldest banking firms worldwide. It is also the most prestigious financial services company with over $2 trillion in assets under management as of September 2020. This investment bank primarily operates through four segments – investment banking, institutional client services, investing and lending and investment management. Goldman also operates an online consumer bank, called Marcus. It has its headquarters in New York City.
