Finance for Compliance Professionals: The 10 Biggest Investment Banks in the world

What are the biggest investment banks in the world, what are they worth and how much do they make? Reporting season is in full swing with a number of banks reporting their latest results last week and this one. Thus, it’s a good time to take stock and have a look at the numbers.

There are a couple of scenarios why you’re reading this post. Maybe you are a compliance or risk professional like many of our readers and you want to know more about the impact of regulations and innovation in the financial industry. Or you work in a different function for a financial institution and are equally interested in these topics. Maybe you work for a RegTech or FinTech startup and you’re curious about the interaction of regulation, financial services and disruptive technologies. There a many backgrounds for which it is important to be an expert on regulation and financial technology. At PlanetCompliance our objective is to provide you with that relevant information you need for this purpose. However, often it’s not enough to know your subject matter inside out. Instead, we need to be able to see the bigger picture and therefore understand the settings we operate in. That’s why we regularly examine different aspects of the financial industry and try to help you put the pieces of the puzzle together and today we take a closer look at investment banks. Like all traditional financial institutions they have felt the pressure brought on them by increasing regulations, a low-tax environment and new incumbents trying to have a piece of their pie. But the reporting season is already under way and a few financial organizations have already put out their numbers for the last quarter, so it is an excellent time to see how they are doing and what’s in store for them. Here are the top 10 investment banks based on their investment banking fees:

 

1) JP Morgan Chase

Total net revenue (in $m): 95.668

Net income (in $m): 24.733

Market capitalization (in $m): 307.295

Total assets (in $m): 2.490.972

Net income per share (in $): 6,24

Headcount: 243.355

Investment Banking Fees (in $m): 2.740

Q3 Results: JP Morgan published its Q3 results on 12 October citing that its third-quarter profit rose 7.1% as a boost from lending offset weaker trading results for the nation’s biggest bank by assets. The bank reported a profit of $6,73 billion, i.e. $1,76 a share. That compares with a profit of $6,29 billion, or $1,58 a share, in the same period of 2016. Revenue rose 2.7% to $26,2 billion.

 

2) Goldman Sachs

Total net revenue (in $m): 30.610

Net income (in $m): 7.398

Market capitalization (in $m): 99.690

Total assets (in $m): 860.165

Net income per share (in $): 5,17

Headcount: 34.400

Investment Banking Fees (in $m): 2.480

Q3 Results: On 17 October, Goldman reported net revenues of $8,33 billion and net earnings of $2,13 billion for the third quarter ended 30 September. Diluted earnings per common share were $5,02 compared with $4,88 for the third quarter of 2016 and $3,95 for the second quarter of 2017. The bank also reported for the first nine months net revenues of $24,24 billion, 8% higher than the first nine months of 2016.

 

3) Bank of America Corporation

Total net revenue (in $m): 83.701

Net income (in $m): 17.906

Market capitalization (in $m): 222.163

Total assets (in $m): 2.187.702

Net income per share (in $): 1,58

Headcount: 208.000

Investment Banking Fees (in $m): 2.320

Q3 Results: BoA announced its Q3 results on Friday, 13 October with third-quarter results Revenue up at $22,079 billion. It’s net interest income totaled $11,4 billion.

 

4) Morgan Stanley

Total net revenue (in $m): 37.949

Net income (in $m): 5.979

Market capitalization (in $m): 93.082

Total assets (in $m): 814.950

Net income per share (in $): 2,98

Headcount: 55.311

Investment Banking Fees (in $m): 2.106

Q3 Results: Morgan Stanley reported its quarterly results on 17 October with Net Revenues of $9.2 Billion and Earnings per Diluted Share of $0.93, seeing “continued strength in Investment Banking”.

 

5) Citigroup

Total net revenue (in $m): 69.875

Net income (in $m): 14.912

Market capitalization (in $m): 194.410

Total assets (in $m): 1.792.077

Net income per share (in $): 1,14

Headcount: 219.000

Investment Banking Fees (in $m): 1.878

Q3 Results: On 12 October Citigoup reported Earnings per Share of $1,42, Net Income of $4,1 Billion and revenues of $18,2 Billion.

 

6) Barclays

Total net revenue (in $m): 26.385

Net income (in $m): 3.973

Market capitalization (in $m): 43.910

Total assets (in $m): 1.491.990

Net income per share (in $): 0,13

Headcount: 129.400

Investment Banking Fees (in $m): 1.494

Q3 Results: Barclays will announce its next quarterly results on Thursday, 26 October with a live webcast

 

7) Credit Suisse

Total net revenue (in $m): 21.162

Net income (in $m): -2.656

Market capitalization (in $m): 41.246

Total assets (in $m): 803.464

Net income per share (in $): -1,32

Headcount: 47.170

Investment Banking Fees (in $m): 1.340

Q3 Results: On November 2, 2017, Credit Suisse Group will present its third quarter 2017 results to investors and analysts as well as to media representatives.

 

8) Deutsche Bank

Total net revenue (in $m): 31.515

Net income (in $m): -1.424

Market capitalization (in $m): 29.410

Total assets (in $m): 1.670.550

Net income per share (in $): -1,27

Headcount: 99.744

Investment Banking Fees (in $m): 1.274

Q3 Results: Deutsche Bank will announce Q3 2017 results with Investor and Analyst Conference Call on Thursday, 26 October.

 

9) Wells Fargo

Total net revenue (in $m): 88.267

Net income (in $m): 21.938

Market capitalization (in $m): 270.390

Total assets (in $m): 1.930.115

Net income per share (in $): 0,96

Headcount: 268.800

Investment Banking Fees (in $m): 939

Q3 Results: On Friday, 13 October, Wells Fargo reported 3Q2017 net income of $4,6 billion and diluted EPS of $0.84, which included the impact of a discrete litigation accrual of $(0.20) per share for previously disclosed mortgage-related regulatory investigations

 

10) RBC Capital Markets

Total net revenue (in $m): 28.804

Net income (in $m): 7.844

Market capitalization (in $m): 115.410

Total assets (in $m): 885.194

Net income per share (in $): 1,41

Headcount: 75.510

Investment Banking Fees (in $m): 828

Q3 Results: RBC has a different reporting calendar compared to the other banks and will announce its Fourth Quarter 2017 results on 29 November.

 

A word on the numbers above: all results are from publicly available documents like the 2016 annual reports of the banks, but investment banking in many financial organisations is part of a bigger banking organisation. For instance, RBC Capital Markets, which is part of Royal Bank of Canada, brought in the investment banking fees of $828m with its 7.200 employees (roughly 10% of the entire work force), but the overall results are in regard to the entire bank. All amounts are in US dollars and where the financial institutions reported their results in a different currency they were converted based on rates as of 31 December 2016, i.e. £1 = $1,23; 1C$ = US$ 0,75; CHF 1 = US$ 0,98; and €1 = US$ 1,05.