Investment banks are the most complex part of the banking system. Although they are very vital to large companies and corporations, one can still spend a long time trying to research what exactly they do without coming up with something tangible.
Nonetheless, I’ve come to the conclusion that the “big” guys can’t function properly or even expand without an investment bank. This is because they are the middleman in any large financial transaction.
So, what do you do if you are looking for the best intermediary between your business and an investment?
Well, the answer is to find an investment bank. Their main responsibility is to give you the best advice on how to go about an investment that will generate immense profit.
There are a lot of investment banks around the world but it is quite easy to identify the main players in the industry.
Hence in this article, we will highlight some of the best investment banks in the UK.
Take a look at the sequence of the article below.
What Are Investment Banks?
An Investment bank is a financial services company that acts as the mediator in large financial transactions. They are the financial advisers in these transactions for individuals, corporations, and governments.
Investment banks are always involved when companies choose to take part in mergers and acquisitions (M&A) or prepare to launch its initial public offering (IPO). According to Wikipedia, They also provide other services like market making, trading of derivatives and equity securities, and FICC services (fixed income instruments, currencies, and commodities).
Unlike other kinds of banks, investment banks do not accept deposits. They are divided into three categories:
The UK houses some of the best investment banks and they include Barclay’s, JP Morgan, Goldman Sachs, and lots more that we will discuss shortly. But first, let’s see how investment banks work.
How Does Investment Banks Work?
For most investment banks to make a profit, they maintain prime brokerage and asset management departments together with their investment research businesses.
Some even go-ahead to have retail banking divisions that loan money to consumers and businesses.
Running an investment bank is profitable but comes with a lot of stress. Here are the four major ways an investment bank works.
#1. Financial Advisor
Investment banks serve as financial advisors to large companies who want to take part in complex financial transactions.
In the UK, the bank’s relationship with its client and the frequency of the recommendation is what tops the chart for the best investment banks. Due to this, the banks must be well equipped to provide strategic advice on a lot of money matters.
One way they are very efficient at this is by thoroughly understanding their clients’ objectives and industry in line with the global market. With this, they can easily evaluate and spot short- and long-term opportunities and challenges and be able to offer good financial advice.
#2. Carrying Out Research
Carrying out research helps an investment bank stay up to date with profitable information on areas like fixed income, credits, and quantitative analysis that can be used to advise new clients.
Through the research carried out, these banks are able to write reports about their clients with the buy, hold, or sell ratings.
Investment banks are known as mediators between companies and the financial market. Just like I said earlier, they are always involved when companies want to purchase any major stock to choose to take part in mergers and acquisitions.
For this reason, the investment bank examines a company’s financial statement for precision before announcing its offer to investors.
#4. Mergers & Acquisitions
Investment banks in the UK offer an exclusive service to leverage the market in the best way possible. They continuously monitor the financial market, provide leveraging opportunities to the clients, and offer solutions that will generate the best results.
Having seen how an investment bank operates, let’s look at some of the best investment banks in the UK.
What Are The Best Investment Banks In The UK?
Investment banks are a large part of a business. Without them, businesses may make the wrong investment decisions. We have seen this and decided to bring you the best investment banks in the UK.
Bear in mind that some of these banks are originally UK based banks while others just have a branch in the UK. Also, since they are all top-notch banks known for years of providing excellent financial advice with good customer service and recommendations, they are listed in no particular order.
Now, here are the ten best investment banks in the UK.
#1. J.P Morgan Chase
Beginning my list of investment banks in the UK is the J.P Morgan Chase. This is probably the biggest name in investment. This bank has a legacy history dating back to 1799 and has become the 6th largest bank in the world with assets of $2.7 trillion.
J.P Morgan has operated in Europe for about 200 years and has a local market presence across Europe, the Middle East, and Africa (EMEA). They have been offering solutions to the world’s most important corporations, governments, and institutions for more than 100 countries. Its major focus areas are investment banking and M&A.
As announced in the third quarter of 2020, JPMorgan Chase has a revenue of $30billion and a net income of $9.4 billion.
You can visit the J.P Morgan Chase official website to learn more
#2. Goldman Sachs
Goldman Sachs is another leading global investment bank in the UK that has been in operation since 1869. The firm has headquarters in New York and in all major financial centers of the world like London, UK.
Goldman Sachs focuses on investing, investment management, and other client services like asset management. It offers a wide range of financial services to its diversified client base that includes corporations, financial institutions, individuals, and government.
As of the end of the third quarter of 2020, Goldman Sachs has a revenue of $10.78 billion and a net income of $3.62 billion.
Click the button below to visit the Goldman Sachs official website.
Barclays is another one of the investment banks in the UK. This British bank continuously offers advice to government clients, large companies, and institutions with a full spectrum of strategic advisory, financing, and risk management solutions to help them innovate and grow. Its main focus is on investment management and corporate banking.
Barclays UK generated a net income of £1,280million with an asset worth of £294.5billion at the end of the third quarter of 2020.
You can see more about Barclay’s by clicking the button below
HSBC is one of the oldest and top investment banks in the UK. It was established in 1865 to finance trade between Europe and Asia and has grown to become the largest bank in Europe.
With over 150 years of experience, this Swiss investment bank has offered advice to clients, and financial organizations on M&A, investment banking, and private banking. HSBC manages some of the largest amounts of private wealth in the world and is known for its private banking culture all around the world.
There are no financial records for 2020 yet but as of the end of 2019, HSBC has an asset value of $2.7trillion and revenue of $56billion.
See more about HSBC here.
#5. Morgan Stanley
Morgan Stanley has been one of the top investment banks in the UK since 1935. For over 90 years, it has been offering advice to individuals, governments, and institutions in three major areas: Investment management, wealth management, and institutional security.
Morgan Stanley Investment bank was one of the financial institutions that faced severe effects during the 2008 financial crisis and received much help from the US government.
As of the second quarter of 2020, Morgan Stanley recorded a revenue of $13 billion and a net income of $3 billion.
You can learn more about Morgan Stanley here
#6. Bank of America – Merill Lynch
Although Bank of America is not entirely an investment bank, it has developed an investing arm called Merrill Lynch. This arm was established in 2008. Recently, the company reported that it would remodel Merill Lynch as part of “BofA Corp”.
The bank focuses on risk management, M&A, wealth, and investment management, and has offered certain investment products to clients of the bank.
At the end of the third quarter of 2020, Revenue was recorded at $20.3 billion with a net income of $4.9 billion and a total asset of $2.7 trillion.
Click the button below to know about the Bank of America.
Blackrock is one of the top investment banks in London that has been in operation since 1988. The firm is known as the largest asset manager in the world and has investment products that can do more than grow your money.
Their purpose is to help more people experience financial well-being by giving them long-term sustainable financial advice.
In the third quarter of 2020, Blackrock has assets under management (AUM) of $7trillion, the revenue of $4 billion, and a net income of $1.3billion.
Click the button below to see more about Blackrock.
#8. Credit Suisse
Credit Suisse is a Swiss multinational investment bank that has been in operation since 1856. The firm has major financial centers all around the world and over 4000 employees working in the investment banking team.
With over 100 years of experience, Credit Suisse has offered clients top-notch advice on wealth management, and investment banking. They operate strongly in three regional divisions: Swiss Universal Bank, International Wealth Management, and the Asia Pacific.
As of the end of 2019, Credit Suisse recorded revenue of ₣22.4 billion, a net income of ₣3.4billion, and a total of ₣1.50 trillion in asset management.
To learn about the Credit Suisse bank, click the button below.
Citigroup is another multinational investment bank that has been operating since 1811. With over 200 years of experience, they regularly provide financial services that allow growth and economic progress.
Citigroup bank offers financial advice to consumers, corporations, governments, and institutions on how to meet the toughest financial challenges and embrace its greatest opportunity.
At the end of the third quarter of 2020, Citigroup bank recorded a revenue of $17.3 billion and a net income of $3.2 billion
Learn more about Citigroup bank here
#10. Deutsche Bank
Rounding up my list of top investment banks in the UK is Deutsche Bank. This German bank has since 1870 operated internationally as the largest investment bank in the Eurozone. The firm offers investment banking, underwriting services, risk management, and more.
The investment bank combines Deutsche Bank’s Fixed Income & Currencies, Corporate Finance, and Deutsche Bank Research to provide strategic advice to corporate clients on investing matters.
At the end of 2019, Deutsche bank had revenue of €23.8 billion and a net income of €341 million.
Click the link below to learn about the Deutsche bank.
The UK in general is a good place for investment banking. So if you will like to go into investment banking or want to know which investment banks there are, Go through this post to see the top investment banks in London (UK).
I hope this helps you.