Investment Banking Analyst in the United States

Paul Inouye

March 7, 2023

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If you’re looking for a challenging career that pays well and offers great exit opportunities, considers becoming an investment banking analyst. You’ll be part of a team that advises companies on large corporate transactions. As an investment banking analyst, your duties include conducting industry-specific research and constructing financial models. You’ll also work with clients on their capital structures, valuations, and strategic advisory assignments.

Education Requirements

Investment banking analysts need a bachelor’s degree in a finance-related field. This includes accounting, economics, finance, mathematics, and statistics majors. Some investment banks prefer candidates with advanced degrees, especially those in business administration or finance.

Many investment bankers pursue graduate degrees, which can help them gain more experience and raise their earning potential. These degrees include a master of business administration (MBA) or a master of finance (MFG).

In addition to education, entry-level investment bankers also receive training. During this period, they learn the principles of financial analysis, risk management, and markets, as well as communication, negotiation, and presentation skills.

Analysts must also be familiar with industry regulations, ensuring that their clients or institutions operate within federal laws. They must use their knowledge of these rules to make informed recommendations to their clients or institutions.

Experience Requirements

Investment banking analysts are responsible for analyzing and researching the financial performance of companies within certain sectors. They evaluate potential investments, facilitate mergers and acquisitions, and help clients secure funding for new businesses.

Those who want to become investment banking analysts should attend a top college and earn good grades. They should also complete several internships at investment banks or related companies.

As an entry-level investment banker, you must work long hours – sometimes 80 or more – and work closely with senior bankers. This will require you to be self-motivated, determined, and able to deal with the pressures of the job.

As an investment banking analyst, you need to be able to develop and use financial models to assess the performance of various business sectors. You must have strong mathematical and statistics skills to create and understand how to use these models effectively. You must also have a solid understanding of financial statement analysis and be able to use spreadsheet software to conduct research and present the findings to your clients.

Job Duties

As an Investment Banking Analyst, you analyze financial data and develop recommendations for mergers, acquisitions, capital-raising transactions, and private equity deals. This job requires extensive knowledge of financial modeling, cash flow analysis, problem-solving abilities, and securities law.

You also prepare and review the materials used in these transactions, such as research reports, pitch books, progress reports, and PowerPoint presentations. It is also your responsibility to maintain relationships with new and existing clients.

Most entry-level analysts work in industry coverage groups, analyzing companies within a specific sector and presenting their ideas to potential investors. They write industry reports and produce pitch books that vice presidents and directors use to present to their clients.


In the United States, Investment Banking Analysts make an average of $68,400 annually. The highest salaries can exceed $115,400 gross.

In addition to a base salary, analysts receive an annual bonus, typically based on individual performance of bank and how much money the bank earns. The size of the bonus depends on a variety of factors, such as whether the analyst is in an industry group that closed a lot of deals or if the firm had a good year overall.

Traditionally, analysts get their first-year bonuses at the end of their first calendar year. However, some firms are now switching to a “stub year” model for their first-year associates. This resets the analyst’s first-year bonus to December of the following year when their second-year bonus will be paid out.