Who are the best bankers in the world? How do you measure a piece of string?
Courtesy of market intelligence firm Tricumen, there might be a measuring stick to use. Stacking up bank revenues in the first half of the year and dividing by the number of front-office Full Time Employees (FTE), Tricumen devises the comparative efficiency (or rather, revenue produced) of each bank’s bankers.
Based on Tricumen’s data, Goldman and JPM’s “Capital Markets” people (a wide net encompassing both investment banking and trading) are, by some margin, the best in the industry. On average, they produce 1.5 higher standard deviations more revenue than their peer group – way higher than closest competitors, Morgan Stanley and Wells Fargo, who are also strong performers but only produced 0.5 standard deviations more revenue, on average.
Morgan Stanley’s runner-up position is not a surprise, but Wells Fargo is. Data from (fellow) market intelligence provider Dealogic doesn’t put the bank on its global top seven for ECM, DCM, or M&A revenue (or even in the top ten for investment banking as a whole).
And yet Wells Fargo has by far the most efficient investment bankers in the industry, producing revenues two standard deviations above the average. That’s pretty big – a number of banks got closest (including Royal Bank of Canada and BofA) but none got up to one standard above the average.
In sales and trading, Deutsche Bank’s Fixed Income, Currencies, and Commodities (FICC) traders put up a valiant effort but were behind both Goldman and JPM’s. Morgan Stanley put up a similar fight for equities, with the same level of success.
The charts below show relative performance, measured by operating revenue per front office full-time employee. Banks are compared relative to a group average, in standard deviations from that average. The dashed circle indicates the average. Each dash on the lines eminating from the centre indicate half a standard deviation from the average.
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FAQs
How is J.P. Morgan different from other banks that work with startups? The firm has decades of global experience, a robust professional and venture capital network, and scalable treasury management solutions—which can make us the only bank you'll ever need.
Why do people not like Goldman Sachs? ›
Goldman was criticized for allegedly misleading its investors and profiting from the collapse of the mortgage market during the 2007–2008 financial crisis.
What is the hardest bank to get into? ›
Goldman Sachs is often cited as the hardest investment bank to get into, due to its prestigious reputation, highly competitive hiring process, and rigorous standards for candidates in terms of experience, education, and skills.
Who is better, J.P. Morgan or Goldman Sachs? ›
Both banks generate a sizable portion of revenues from market-making. However, Goldman Sachs is more dependent on such business. JPMorgan's revenue streams are a bit more diversified. JP Morgan has over three times the amount of assets as Goldman Sachs and generates over three times the net revenue.
What is the weakness of J.P. Morgan? ›
Weaknesses. Regulatory and Compliance Risks: As a highly regulated entity, JPMorgan Chase & Co faces significant compliance risks. The 10-K filing highlights the complexity of adhering to various laws and regulations, which can lead to increased costs and operational constraints.
What are the cons of J.P. Morgan? ›
Weaknesses. Regulatory Challenges: As a global financial institution, JPMorgan is subject to complex and evolving regulatory environments in multiple countries. Compliance with these regulations can be costly and time-consuming, potentially impacting the company's operational efficiency and profitability.
What bank do most millionaires use? ›
The Most Popular Banks for Millionaires
- JP Morgan Private Bank. “J.P. Morgan Private Bank is known for its investment services, which makes them a great option for those with millionaire status,” Kullberg said. ...
- Bank of America Private Bank. ...
- Citi Private Bank. ...
- Chase Private Client.
Following one of the most successful years in United's long history, United Bank has been named the Most Trustworthy Bank in America by Newsweek for 2023.
What is the most reliable bank in the US? ›
Summary: Safest Banks In The U.S. Of April 2024
| Bank | Forbes Advisor Rating | Learn More |
|---|
| Chase Bank | 5.0 | Learn More Read Our Full Review |
| Bank of America | 4.2 | |
| Wells Fargo Bank | 4.0 | Learn More Read Our Full Review |
| Citi® | 4.0 | |
1 more rowJan 29, 2024
JPMorgan Chase is one of the world's oldest, largest and best-known financial institutions. With a history that traces our roots to 1799 in New York City, we carry forth the innovative spirit of our heritage firms in our global operations in over 60 countries. Our firm's culture is rooted in our core principles.
What made J.P. Morgan famous? J.P. Morgan was known for reorganizing businesses to make them more profitable and stable and gaining control of them. He reorganized several major railroads and became a powerful railroad magnate.
What is the minimum for JP Morgan Private Bank? ›
For example, the Bank of America private bank minimum requirement is $10 million. The minimum requirement to open a private banking account with HSBC in the US is $5 million, while the minimum for banks like JP Morgan is $10 million.
How does J.P. Morgan stand out from other banks? ›
Exceptional Client Service. For more than two centuries, JPMorgan Chase has always been there for our constituents around the world. In the toughest of times when strong banks are needed the most, we never waver in our support, and we never lose sight of our main mission: serving our clients.
Why is J.P. Morgan bank the best? ›
The global behemoth seized the opportunities that volatility afforded, posting phenomenal growth.” At J.P. Morgan, clients not only benefit from specialists, but also—through their Private Bank teams—have access to the vast resources of the full firm.
What distinguishes J.P. Morgan from competitors? ›
JP Morgan has merged commercial banking and investment banking, something that neither Goldman Sachs nor Morgan Stanley have done. This creates a mix of corporate cultures and business units that offers a range of diverse opportunities to a new employee.
What is J.P. Morgan's competitive advantage? ›
Overall, JPMorgan deals with industry competition in three main ways: By distinguishing itself in the marketplace primarily on the basis of its history and experience. By staying on the cutting edge of offering customer convenience and low-cost and cutting-edge services.
