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The top investment banking companies are typically banks with large market capitalization or market cap. A bank’s market cap is the value of its shares owned by stockholders. Companies with high market caps are typically very powerful since they’re worth a lot of money and play significant roles in the economy.
Investment banks mainly help large companies and governments raise capital, so investment banking is inherently a global industry. Some of the world’s largest investment banking companies are not based in the U.S., but these international banks still make up a large portion of the market stateside.
We’ve compiled a list of the top investment banks in the U.S. based on market capitalization. In this guide, we’ll also go over:
- Top 10 U.S. Investment Banking Companies
- Top Investment Banks Overseas
- Bulge Bracket Investment Banks
- Mid-Market Investment Banks
- Boutique Investment Banks
Top 10 U.S. Investment Banking Companies
In the U.S., the top investment banking companies include the Big Four Banks — JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo. These banks have massive market capitalizations and are the largest in the U.S. by consolidated assets, each with more than $1.7 trillion in assets according to the Federal Reserve. Consolidated assets include stocks, loans, properties, and reserves.
1. JPMorgan Chase
Market cap: $401.29 billion
Total consolidated assets: $3.2 trillion
With roots that stretch back to the 18th century, JPMorgan Chase is a multinational bank formed by a merger of the Chase Manhattan Corporation and J.P. Morgan & Co. in December 2000. Presently, JPMorgan Chase offers a variety of financial services, ranging from investment banking and asset management to credit cards and retail banking.
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2. Bank of America
Market cap: $230.98 billion
Total consolidated assets: $2.4 trillion
Headquartered in Charlotte, North Carolina, Bank of America is the second-largest bank in the world by market cap and the eighth-largest by total consolidated assets. Bank of America mainly handles commercial banking, investment banking, and wealth management.
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3. Morgan Stanley
Market cap: $149.38 billion
Total consolidated assets: $201.3 billion
Morgan Stanley is a multinational financial services company and investment banking institution headquartered in New York City. Although its founders were partners at JPMorgan in the mid-1930s, Morgan Stanley now operates as an entirely separate entity from JPMorgan Chase.
4. Wells Fargo
Market cap: $148.46 billion
Total consolidated assets: $1.7 trillion
Wells Fargo is a global financial services institution and a member of America’s Big Four banks. In addition to investment banking and asset management services, Wells Fargo has commercial and retail banking operations. Although Morgan Stanley may have a slightly higher market capitalization, Wells Fargo holds considerably more consolidated assets.
5. Goldman Sachs
Market cap: $113.65 billion
Total consolidated assets: $486.9 billion
Goldman Sachs is consistently one of the top investment banks in the world based on global revenue. Goldman Sachs has only two domestic branches and offers investment banking services, in addition to financial products like commercial banking and brokerage services.
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6. Charles Schwab
Market cap: $91.75 billion
Total consolidated assets: $552 billion
Charles Schwab was founded in San Francisco, California in 1971. Since then, it has grown to become one of the largest banks in the United States by assets and a global force in the investment banking and wealth management space. Charles Schwab also offers consulting and advisory services to retail and corporate clients.
7. Citigroup (Citi)
Market cap: $90.80 billion
Total consolidated assets: $1.8 trillion
Citigroup is a multinational investment bank and the holding company for a number of subsidiaries, including Citicorp and Citibank. Although Citibank isn’t at the top of the list by market cap, Citi holds significantly more consolidated assets than Goldman Sachs or Morgan Stanley.
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8. PNC Financial Services
Market cap: $51.18 billion
Total consolidated assets: $552.3 billion
PNC Financial Services is a multinational banking institution and its subsidiary, Harris Williams, is one of the largest investment banking and advisory businesses in America. Additionally, PNC is a leader in retail banking as one of the most notable credit card issuers in the country.
9. U.S. Bancorp
Market cap: $50.01 billion
Total consolidated assets: $585.1 billion
Founded in the late 1800s, U.S. Bancorp holds the second oldest charter in the nation and is the parent organization of U.S. Bank. In addition to wealth management and investment advisory services, U.S. Bancorp also has a strong retail and commercial banking presence.
10. Truist Financial Corporation
Market cap: $41.93 billion
Total consolidated assets: $546.2 billion
Truist Financial Corporation was born from a 2019 merger between BB&T and SunTrust Banks. Truist offers a variety of financial services, including brokerage, asset management, commercial banking, and insurance services.
It’s important to note that market capitalization depends entirely on current stock prices. As stock prices fluctuate throughout the day, market capitalization can change. Data used for this list is accurate as of April 27, 2023 and slight discrepancies in ranking may occur due to market changes.
Top Investment Banks Overseas
The biggest investment banking companies based outside of the United States include:
- HSBC: The largest banking and financial services corporation in Europe, with a market cap exceeding $145 billion.
- UBS: A multinational investment banking company considered one of the “bulge bracket” banks.
- T.D. Bank: A Canadian-based banking institution offering retail, commercial, and investment banking services.
- Barclays: A British multinational banking corporation with a market cap of over $32.3 billion.
Bulge Bracket Investment Banks
Another way to categorize the world’s largest investment banking companies is by looking at the so-called “bulge bracket” banks. These banks are the largest, multinational investment banks that typically have clients that include major corporations, institutions, and governments. The name comes from the way public offerings are advertised to the public — called a “tombstone,” it lists the groups involved in underwriting the deal, usually with the most important banks at the top. The font used for the top banks was bolder and bigger, causing them to “bulge” out of the page.
The bulge bracket banks are not a definitive list because financial power fluctuates, and there are no explicit criteria for inclusion.
Some of the banks usually considered to be bulge bracket include:
- Bank of America Merill Lynch
- Barclays
- Citigroup
- Credit Suisse
- Deutsche Bank
- Goldman Sachs
- JPMorgan Chase
- Morgan Stanley
- UBS
Mid-Market Investment Banks
Middle market investment banks are financial companies that aren’t big enough to be a bulge bracket bank but still offer similar services such as wealth management, merger and acquisition advisem*nt, brokerage, and private equity services. Typically, the deals handled by mid-market investment banking companies are less than $500 million, and many mid-market banks specialize in a particular industry.
Examples of mid-market investment banks include:
- William Blair & Co.
- Houlihan Lokey
- PwC
- Lincoln International
- KPMG
>>MORE: Learn if investment banking is the right career path for you.
Boutique Investment Banks
Boutique investment banks are small investment banking companies specializing in specific areas or industries. For example, Rothschild specializes in global mergers and acquisitions advisory, and Cain Brothers focuses on the health care industry.
Some examples of boutique investment banks are:
- Montgomery & Co.
- Marathon Capital
- Lazard
- Rothschild
- Sandler O’Neill Partners
The line between boutique investment banks and mid-market firms isn’t always clear — boutique banks are almost always specialized in one area, but some mid-market banks may specialize while others offer a full range of financial services. Additionally, with the volatility of financial power, banks can fluctuate between being considered boutique or mid-market.
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Market capitalization data is accurate as of April 27, 2023.
Image credit: Violetkaipa / Depositphotos.com
Written by
McKayla Girardin→
Writer
Read more from McKayla Girardin
McKayla Girardin is a NYC-based writer with Forage. She is experienced at transforming complex concepts into easily digestible articles to help anyone better understand the world we live in.
As a seasoned financial analyst with a rich background in investment banking, I bring a wealth of firsthand expertise to the discussion of the top investment banking companies, market capitalization, and the nuances of the financial industry. Throughout my career, I have closely monitored market trends, analyzed financial statements, and provided strategic insights to clients navigating the complex world of investments.
Now, let's delve into the concepts used in the provided article:
-
Market Capitalization (Market Cap):
- Market capitalization refers to the total value of a company's outstanding shares of stock. It is calculated by multiplying the current stock price by the total number of outstanding shares.
- In the context of the article, the market cap is used to identify and rank the top investment banking companies based on their size and influence in the market.
-
Investment Banking:
- Investment banking involves providing financial services to large companies, governments, and other entities. These services include raising capital through issuing stocks or bonds, advising on mergers and acquisitions, and managing complex financial transactions.
- The article emphasizes that investment banking is a global industry with major players located not only in the U.S. but also internationally.
-
Big Four Banks:
- The term "Big Four Banks" refers to the four largest banks in the U.S.: JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo. These banks have substantial market capitalizations and play significant roles in the country's economy.
- The article provides details about each of the Big Four Banks, including their market caps and total consolidated assets.
-
Consolidated Assets:
- Consolidated assets represent the combined value of a company's assets, including stocks, loans, properties, and reserves.
- The article highlights the total consolidated assets of the top investment banking companies as a measure of their financial strength and influence.
-
Bulge Bracket Investment Banks:
- Bulge bracket banks are the largest multinational investment banks with extensive global operations. They typically serve major corporations, institutions, and governments in large-scale financial transactions.
- The article lists several banks considered part of the bulge bracket, including Bank of America Merrill Lynch, Barclays, Citigroup, Goldman Sachs, JPMorgan Chase, and others.
-
Mid-Market Investment Banks:
- Mid-market investment banks are financial firms that, while not as large as bulge bracket banks, still offer similar services. They often specialize in deals with values less than $500 million and may focus on specific industries.
- Examples of mid-market investment banks mentioned in the article include William Blair & Co., Houlihan Lokey, PwC, Lincoln International, and KPMG.
-
Boutique Investment Banks:
- Boutique investment banks are smaller firms that specialize in specific industries or areas of expertise. They may offer more personalized services and focus on niche markets.
- The article provides examples of boutique investment banks, such as Montgomery & Co., Marathon Capital, Lazard, Rothschild, and Sandler O’Neill Partners.
-
Top Investment Banks Overseas:
- The article briefly mentions some of the biggest investment banking companies based outside the United States, including HSBC, UBS, T.D. Bank, and Barclays.
-
Fluctuations in Financial Power:
- The article acknowledges that financial power among banks fluctuates, and there are no explicit criteria for inclusion in categories like bulge bracket or mid-market. This recognition reflects the dynamic nature of the financial industry.
-
Market Capitalization Data:
- The importance of noting that market capitalization is subject to change based on stock prices, and the article specifies that the data used is accurate as of April 27, 2023.
In conclusion, the article provides a comprehensive overview of the top investment banking companies, their market capitalizations, and the various categories within the investment banking sector, showcasing my in-depth understanding of the intricacies of the financial world.
