An investment banking analyst is the entry-level role in the investment banking career path and serves as the foundation for future growth in the industry. Investment banking analysts are responsible for preparing financial models, conducting company valuations, researching markets, and assisting in live transactions like IPOs and mergers. The role is intense and requires strong analytical and technical skills, but it offers unmatched exposure to corporate finance and high-value deals. For students wondering what does an IB analyst do, the position involves long working hours, detailed financial analysis, and constant interaction with senior bankers to support complex transactions. This early career experience equips analysts with skills in valuation, deal structuring, and market analysis, opening opportunities to progress into associate roles or transition into fields like private equity and corporate strategy.
What Are the Responsibilities of an Investment Banking Analyst?
The responsibilities of an investment banking analyst form the backbone of any deal or financial transaction handled by an investment bank. This role demands precision, speed, and an understanding of corporate finance fundamentals. For students asking what does an IB analyst do, here are the primary duties explained in detail:
Financial Modeling and Valuation
Analysts build detailed financial models to forecast a company’s performance, value assets, and analyze potential returns on investments. These models are crucial for mergers, acquisitions, and IPOs, helping senior bankers present accurate recommendations to clients.
Industry and Market Research
An investment banking analyst conducts extensive research on industries, competitors, and market trends. This research supports decision-making and provides context for investment strategies and deal negotiations. Analysts prepare detailed reports summarizing findings for senior management and clients.
Preparing Pitch Books and Presentations
Analysts create pitch books — comprehensive presentations that highlight market insights, company profiles, and deal strategies. These are used by senior bankers during client meetings to pitch services, negotiate terms, or secure transactions.
Assisting in Live Deals
During active transactions, analysts manage due diligence, coordinate with multiple stakeholders, and ensure smooth execution of processes. This includes reviewing legal documents, preparing transaction summaries, and handling last-minute updates required by clients.
Data Analysis and Reporting
Analysts track financial data, analyze trends, and prepare reports to support senior bankers in making informed decisions. Their insights are used to fine-tune strategies during negotiations and execution phases.
Supporting Senior Bankers
A critical part of what an IB analyst does is assisting associates, vice presidents, and directors in every stage of a transaction. Analysts handle groundwork so senior bankers can focus on client interactions and deal structuring.
Difference Between Analyst & Associate
In the investment banking hierarchy, analysts and associates play vital roles, but their responsibilities, experience levels, and career expectations differ significantly. Understanding this difference helps students plan their progression from an investment banking analyst to higher roles in the career path.
Experience Level
An investment banking analyst is usually an entry-level position filled by recent graduates or candidates with minimal work experience. Analysts focus on learning technical skills such as financial modeling, preparing pitch books, and conducting market research.
An associate, on the other hand, is a mid-level position typically achieved after two to three years as an analyst or post-MBA. Associates bring more experience and are expected to manage analysts, interact directly with clients, and contribute more strategically to deals.
Responsibilities
- Analysts handle data-intensive work: building models, creating presentations, and conducting research. They provide the groundwork for all major transactions.
- Associates oversee analysts’ work, coordinate with senior bankers, and begin client-facing responsibilities. They act as the link between analysts and higher management (VPs or Directors).
Career Progression
An analyst role usually lasts two to three years before promotion to associate. Associates can then move up to Vice President, Director, and ultimately Managing Director roles. For ambitious investment banking analysts, excelling in the analyst role is the first step toward this upward trajectory.
Pay Difference
Associates earn significantly higher salaries than analysts. While analysts focus on learning and execution, associates are rewarded for their leadership and client management responsibilities with higher bonuses and base pay.
Required Skills for Investment Banking Analyst
To succeed as an investment banking analyst, students must develop a mix of technical expertise, analytical thinking, and interpersonal skills. The role involves long working hours, handling large datasets, and supporting senior bankers in high-value transactions. Building these skills early ensures smooth career progression into associate and higher roles.
- Financial Modeling and Valuation Skills: An analyst must be proficient in creating complex financial models to evaluate companies, forecast earnings, and analyze potential mergers or IPOs. Accurate valuations are central to every transaction an analyst supports.
- Excel and PowerPoint Proficiency: Investment banking analysts spend significant time building spreadsheets and presentations. Mastery of Excel for modeling and PowerPoint for client pitch decks is essential to meet tight deadlines and maintain accuracy.
- Understanding of Capital Markets: Analysts must understand how stock markets, bond markets, and derivatives work. This knowledge helps in structuring deals and advising clients on the best methods of raising capital.
- Research and Analytical Abilities: The role requires gathering market data, studying competitors, and analyzing industry trends. These insights help senior bankers craft strategies for clients and structure financial deals effectively.
- Communication and Teamwork: Analysts collaborate with associates, VPs, and directors daily. Clear communication ensures smooth coordination, while teamwork skills are vital during high-pressure deal timelines.
- Attention to Detail and Time Management: Errors in financial models or presentations can lead to major setbacks. Analysts must review their work meticulously and manage time efficiently to meet demanding deadlines without compromising accuracy.
Salary & Benefits of an Investment Banking Analyst
The salary of an investment banking analyst is one of the highest among entry-level finance roles, reflecting the demanding nature of the job and the critical role analysts play in transactions. Compensation typically includes a fixed base salary and performance-based bonuses, with total pay increasing significantly as analysts gain experience or move up the career ladder.
Salary in India
Entry-level investment banking analysts in India earn between ₹10–20 LPA at top domestic and global investment banks. At elite firms like Goldman Sachs, JP Morgan, or Morgan Stanley, pay packages may reach the upper end of this range, especially in Mumbai, India’s financial hub. Bonuses are performance-linked and can range from 50% to 100% of the base salary during strong deal cycles.
Salary Globally
In the US and UK, analysts earn significantly higher compensation. Base salaries start at $90,000–$110,000 annually, with total compensation, including bonuses, often exceeding $140,000–$160,000 for first-year analysts. Pay scales rise further in the second and third years, and analysts who transition to associate roles see substantial jumps in earnings.
Benefits Beyond Salary
- Performance Bonuses – Substantial bonuses linked to deal volume and individual performance.
- Health and Insurance Benefits – Comprehensive coverage, including medical and sometimes wellness perks.
- Learning Opportunities – Access to advanced training programs, financial modeling workshops, and on-the-job learning.
- Networking and Global Exposure – Opportunities to work with senior bankers and clients from various industries and countries.
- Exit Opportunities – Experience gained as an analyst opens doors to private equity, hedge funds, venture capital, and corporate strategy roles with even higher earning potential.
How to Become an Investment Banking Analyst
Becoming an investment banking analyst requires a mix of the right education, technical skills, internships, and networking. Since analysts are the backbone of deal execution, banks look for candidates who can handle financial modeling, research, and high-pressure work environments from day one. Here’s the step-by-step path most investment banking analysts follow:
1. Educational Qualifications
Most analysts hold a degree in commerce, finance, economics, accounting, or business administration. In India, students from top colleges like SRCC, St. Xavier’s, or IIMs have an advantage. Globally, investment banks recruit from Ivy League or top-tier universities. An MBA or Master’s in Finance can also provide a competitive edge.
2. Certifications and Courses
While not mandatory, certifications like CFA (Chartered Financial Analyst) or FRM (Financial Risk Manager) boost credibility. Specialized courses in financial modeling, valuation, and Excel prepare students for the technical demands of the analyst role.
3. Build Technical and Soft Skills
Strong command of Excel, PowerPoint, and financial analysis is essential. Equally important are communication, teamwork, and time management skills, since analysts often coordinate with associates and senior bankers on multiple deals simultaneously.
4. Gain Internship Experience
Internships are the most direct route to a full-time analyst role. Internships at leading firms like JP Morgan, Goldman Sachs, Kotak Investment Banking, or Morgan Stanley provide hands-on exposure to live deals and often lead to pre-placement offers.
5. Apply Through Campus or Networking
Top investment banks recruit heavily through campus placements at leading colleges and B-schools. For off-campus applicants, networking via LinkedIn, alumni connections, and finance events is crucial to secure interviews.
6. Ace the Recruitment Process
The recruitment process typically includes aptitude tests, technical interviews, and HR rounds. Candidates must demonstrate knowledge of financial statements, valuation methods, and current market trends. Case studies and modeling tests are also common.
Investment Banking Analyst FAQs
What do analysts do in investment banking?
An investment banking analyst builds financial models, conducts market research, and prepares pitch books to support senior bankers during IPOs, mergers, and acquisitions. In short, this role forms the backbone of deal execution for the bank.
How to prepare for an investment banking analyst interview?
Preparation involves mastering financial modeling, valuation methods, and understanding market trends. Practice case studies, technical questions, and behavioral interviews. Knowledge of Excel, PowerPoint, and corporate finance basics is crucial for impressing recruiters.
Do I need an MBA to become an analyst?
No, an MBA is not mandatory to become an investment banking analyst. Most analysts start with undergraduate degrees in commerce, finance, or economics. However, an MBA can help professionals switch to investment banking at the associate level later.
How much does an investment banking analyst earn?
An entry-level investment banking analyst in India earns between ₹10–20 LPA, with bonuses often linked to deal performance. In the US and UK, total compensation can exceed $140,000 annually, including bonuses.
How many hours does an investment banking analyst work?
Investment banking analysts typically work long hours — averaging 70 to 90 hours per week. Work schedules are intense during live deals, but this exposure provides unmatched learning and fast career growth opportunities.
