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What does an investment banking analyst do?

Updated January 8, 2025
8 min read
Quoted expert
Margaret Franklin
What does an investment banking analyst do

An Investment Banking Analyst reviews and analyzes data for investment banking portfolios. They work with individuals and businesses to suggest potential investments for their clients.

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Investment banking analyst responsibilities

Here are examples of responsibilities from real investment banking analyst resumes:

  • Organize and maintain client leads in SalesForce.
  • Used SQL language to manipulate, extract and manage financial and customer data.
  • Manage financial operations such as account management, book keeping, wire transfers, and transaction, position reconciliations.
  • Manage ongoing maintenance of prospective investor pipeline using SalesForce software.
  • Manage trade executions and broker relationships for all portfolio positions across several banks, prime brokerage accounts and electronic commodities exchanges.
  • Perform valuation analyses including DCF, public trading comparison, and precedent transaction comparisons.
  • Trade futures contracts, global fix income securities and speculate in the FX market.
  • Support head equity trader in daily trade reconciliations.
  • Develop technical and progress reports, financial charts and PowerPoint presentations.
  • Support senior bankers performing quantitative analysis on cash flows structuring mortgage-backed securities.
  • Prepare cost and benefit analysis on propose leveraged buyouts and mergers or takeovers.
  • Prepare valuation analysis for pitch using comparable public companies, historical transactions and DCF
  • Organize large interdepartmental meetings, arrange facilities resource, prepare agendas, draft PowerPoint presentations and prepare meeting minutes for circulation.
  • Prepare and analyze investment information for FASB115 GAAP reporting purposes.
  • Write up and serve subpoenas.

Investment banking analyst skills and personality traits

We calculated that 12% of Investment Banking Analysts are proficient in Financial Models, Discounted Cash Flow, and Healthcare. They’re also known for soft skills such as Communication skills, Computer skills, and Analytical skills.

We break down the percentage of Investment Banking Analysts that have these skills listed on their resume here:

  • Financial Models, 12%

    Construct financial models, including merger consequences, discounted cash flow and leverage buy-out analysis for valuation and financing considerations.

  • Discounted Cash Flow, 9%

    Conducted valuation analysis, including analyzing comparable companies, precedent transactions, and building discounted cash flow models.

  • Healthcare, 5%

    Supported full-time analysts and associates in authoring marketing materials for sell-side engagements in the education, healthcare, and technology sectors

  • Capital Markets, 5%

    Analyzed financial data and created credit summaries for review by management, internal credit committee, and external capital markets.

  • Private Equity, 4%

    Provided transaction support for middle-market mergers, acquisitions, capital raises and private equity principal investments.

  • PowerPoint, 4%

    Organized large interdepartmental meetings, arranged facilities resource, prepared agendas, drafted PowerPoint presentations and prepared meeting minutes for circulation.

"financial models," "discounted cash flow," and "healthcare" are among the most common skills that investment banking analysts use at work. You can find even more investment banking analyst responsibilities below, including:

Communication skills. The most essential soft skill for an investment banking analyst to carry out their responsibilities is communication skills. This skill is important for the role because "financial analysts must be able to clearly explain their recommendations to clients." Additionally, an investment banking analyst resume shows how their duties depend on communication skills: "enhance the corporate and investment banking client communication whereby utilizing various electronic printing and publishing composition technologies on multiple system platforms. "

Computer skills. Another soft skill that's essential for fulfilling investment banking analyst duties is computer skills. The role rewards competence in this skill because "financial analysts must be adept at using software to analyze financial data and trends, create portfolios, and make forecasts." According to an investment banking analyst resume, here's how investment banking analysts can utilize computer skills in their job responsibilities: "advanced computer skills including: microsoft excel (vlookup, sumif, macros), access, powerpoint. "

Analytical skills. Another skill that relates to the job responsibilities of investment banking analysts is analytical skills. This skill is critical to many everyday investment banking analyst duties, as "financial analysts must evaluate a range of information in finding profitable investments." This example from a resume shows how this skill is used: "track existing holdings and prospective investment initiatives of client portfolios based on financial statements and valuation analysis. "

Detail oriented. A big part of what investment banking analysts do relies on "detail oriented." You can see how essential it is to investment banking analyst responsibilities because "financial analysts must pay attention when reviewing a possible investment, as even small issues may have large implications for its health." Here's an example of how this skill is used from a resume that represents typical investment banking analyst tasks: "proposed transaction and capital structure alternatives, reinforced by detailed financial analysis. "

Math skills. Another common skill required for investment banking analyst responsibilities is "math skills." This skill comes up in the duties of investment banking analysts all the time, as "financial analysts use mathematics to estimate the value of financial securities." An excerpt from a real investment banking analyst resume shows how this skill is central to what an investment banking analyst does: "applied industry and company-specific quantitative and qualitative research in the healthcare, outsourcing, and education space. "

All investment banking analyst skills

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Investment Banking Analyst Resume
Investment Banking Analyst Resume
Investment Banking Analyst Resume
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Investment Banking Analyst Resume
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Investment Banking Analyst Resume
Investment Banking Analyst Resume

Compare different investment banking analysts

Investment banking analyst vs. Senior finance consultant

A senior finance consultant is responsible for helping clients manage their account portfolios, recommending investment options, and monitoring their finances. Senior finance consultants should have extensive knowledge of the financial industry, especially on working with clients and inform them of current financial services and strategize financial plans according to the clients' needs and best interests. They also respond to clients' inquiries and concerns regarding their account performance and financial discrepancies, resolving issues to achieve the clients' long-term financial goals and objectives.

If we compare the average investment banking analyst annual salary with that of a senior finance consultant, we find that senior finance consultants typically earn a $37,091 higher salary than investment banking analysts make annually.While their salaries may differ, the common ground between investment banking analysts and senior finance consultants are a few of the skills required in each roleacirc;euro;trade;s responsibilities. In both careers, employee duties involve skills like financial models, discounted cash flow, and financial analysis.

There are some key differences in the responsibilities of each position. For example, investment banking analyst responsibilities require skills like "healthcare," "capital markets," "private equity," and "powerpoint." Meanwhile a typical senior finance consultant has skills in areas such as "project management," "financial services," "strong analytical," and "shared services." This difference in skills reveals the differences in what each career does.

Senior finance consultants earn the highest salaries when working in the technology industry, with an average yearly salary of $100,438. On the other hand, investment banking analysts are paid more in the finance industry with an average salary of $89,090.On average, senior finance consultants reach higher levels of education than investment banking analysts. Senior finance consultants are 8.4% more likely to earn a Master's Degree and 0.0% less likely to graduate with a Doctoral Degree.

Investment banking analyst vs. Analyst internship

An analyst internship is a student program where an intern is assigned to assist analyst professionals by analyzing business goals, objectives, and needs. Analyst interns assist in the planning and designing of business processes and suggest recommendations for improvement. They conduct research and analysis to support business operations and resolve issues using systems and data. They also help estimate the costs and benefits of multiple business actions and help the business organization launch new initiatives.

On average, analyst interns earn a $22,029 lower salary than investment banking analysts a year.A few skills overlap for investment banking analysts and analyst interns. Resumes from both professions show that the duties of each career rely on skills like "financial models," "discounted cash flow," and "private equity. "

In addition to the difference in salary, there are some other key differences worth noting. For example, investment banking analyst responsibilities are more likely to require skills like "healthcare," "capital markets," "powerpoint," and "securities." Meanwhile, an analyst internship has duties that require skills in areas such as "data analysis," "management system," "python," and "data entry." These differences highlight just how different the day-to-day in each role looks.

Analyst interns may earn a lower salary than investment banking analysts, but analyst interns earn the most pay in the professional industry with an average salary of $41,723. On the other hand, investment banking analysts receive higher pay in the finance industry, where they earn an average salary of $89,090.In general, analyst interns achieve similar levels of education than investment banking analysts. They're 3.6% more likely to obtain a Master's Degree while being 0.0% more likely to earn a Doctoral Degree.

What technology do you think will become more important and prevalent for investment banking analysts in the next 3-5 years?

Margaret FranklinMargaret Franklin LinkedIn profile

President and CEO, CFA Institute

Artificial Intelligence will continue to enhance the investment process. There're two aspects that are important to the investment management industry: the first is making the business more efficient by democratizing financial advice and services to make them available to a wider array of audiences, the second is the ability to access more data to inform investment decisions to find greater risk-adjusted returns in the investment process.

Ultimately, the combination of human intelligence and artificial intelligence will add more value than either component can alone. This is the future of investment management.

Investment banking analyst vs. Associate analyst

An associate analyst is an individual who is responsible for the research and investigation for a specific business process and department to help the senior staff make further decisions. Associate analysts must use their analytical skills to understand how the collected data can affect business decisions, then prepare reports that detail findings and recommend solutions. They must assist in developing new business models that can generate profits while reducing costs. Associate analysts can work in various industries ranging from finance and operations to information technology (IT) and marketing.

On average scale, associate analysts bring in higher salaries than investment banking analysts. In fact, they earn a $7,563 higher salary per year.Using the responsibilities included on investment banking analysts and associate analysts resumes, we found that both professions have similar skill requirements, such as "financial models," "discounted cash flow," and "healthcare.rdquo;

There are many key differences between these two careers, including some of the skills required to perform responsibilities within each role. For example, an investment banking analyst is likely to be skilled in "capital markets," "private equity," "capital raising," and "leveraged," while a typical associate analyst is skilled in "customer service," "data analysis," "portfolio," and "tableau."

Associate analysts earn the best pay in the finance industry, where they command an average salary of $88,076. Investment banking analysts earn the highest pay from the finance industry, with an average salary of $89,090.When it comes to education, associate analysts tend to earn similar degree levels compared to investment banking analysts. In fact, they're 2.5% more likely to earn a Master's Degree, and 0.2% more likely to graduate with a Doctoral Degree.

Investment banking analyst vs. Junior is analyst

A junior IS analyst takes responsibility in making sure that databases are constructed appropriately and with access limits. IS analysts improve trading strategy with intermediaries through compensation information analysis. They handle financial claims payment as well as provider directory processes. Also, they develop dictionaries and provide technical support. They even perform due diligence for investment opportunities. The skills they need to have include management, information technology, and financial management.

Junior is analysts typically earn higher pay than investment banking analysts. On average, junior is analysts earn a $4,698 higher salary per year.According to resumes from investment banking analysts and junior is analysts, some of the skills necessary to complete the responsibilities of each role are similar. These skills include "financial models," "discounted cash flow," and "powerpoint. "

Even though a few skill sets overlap between investment banking analysts and junior is analysts, there are some differences that are important to note. For one, an investment banking analyst might have more use for skills like "healthcare," "capital markets," "private equity," and "securities." Meanwhile, some responsibilities of junior is analysts require skills like "data analysis," "portfolio," "dod," and "data entry. "

The finance industry tends to pay the highest salaries for junior is analysts, with average annual pay of $83,781. Comparatively, the highest investment banking analyst annual salary comes from the finance industry.The average resume of junior is analysts showed that they earn similar levels of education compared to investment banking analysts. So much so that theyacirc;euro;trade;re 3.5% less likely to earn a Master's Degree and more likely to earn a Doctoral Degree by 0.1%.

Types of investment banking analyst

Updated January 8, 2025

Zippia Research Team
Zippia Team

Editorial Staff

The Zippia Research Team has spent countless hours reviewing resumes, job postings, and government data to determine what goes into getting a job in each phase of life. Professional writers and data scientists comprise the Zippia Research Team.

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