What does an investment banking analyst do?

An investment banking analyst is the most junior banker on a deal team, hired out of college, and does the number work: building financial models, gathering and checking information, and turning both into the pages of a presentation. The job is a two- or three-year programme rather than a permanent post, and it is famous for its hours.

What the work is

One textbook states the job in a sentence: an analyst “principally runs analytical models, gathers information, analyzes the information so that it can be incorporated in presentations, and develops presentation materials” for the associates, vice presidents and managing directors above them[1Source 1David P. Stowell, Investment Banks, Hedge Funds, and Private Equity, 3rd ed. (Academic Press, 2017), ch. 10: the division, p. 222; the positions, p. 223; analysts, pp. 223–224.]. The projects are mergers and acquisitions or financings, several at a time, and the analyst is an essential member of each deal team[1Source 1David P. Stowell, Investment Banks, Hedge Funds, and Private Equity, 3rd ed. (Academic Press, 2017), ch. 10: the division, p. 222; the positions, p. 223; analysts, pp. 223–224.]. Another describes analysts as “largely concerned with the mechanics of building financial models and doing basic financial research”[2Source 2Michael E. S. Frankel and Larry H. Forman, Mergers and Acquisitions Basics: The Key Steps of Acquisitions, Divestitures, and Investments, 2nd ed. (Wiley, 2017), “Advisor Staff”, pp. 45–46.].

An ethnographer who studied Wall Street puts it in the bankers’ own words: the analyst’s primary job is to “do the financials”, gathering and processing a company’s numbers to win new clients and keep a deal moving. After the spreadsheets, the analyst moves the models into document and slide templates, which become the polished pitch booksWhat is a pitch book?A pitch book is the presentation an investment bank prepares to win a mandate: its ideas for the client, a valuation, the team and its record. Who builds it.Words of the trade · revised 28 September 2026 · 843 words · 9 sources · 4 min shown to prospective clients[3Source 3Karen Ho, Liquidated: An Ethnography of Wall Street (Duke University Press, 2009), ch. 2: “The White-Collar Sweatshop”, p. 85, and “Hard Work”, pp. 92–94.]. At the pitch stage that means collecting everything there is to know about the client, its industry and how the industry trades, and, if the pitch proposes acquisitions, running full analyses on ten or so candidate companies[3Source 3Karen Ho, Liquidated: An Ethnography of Wall Street (Duke University Press, 2009), ch. 2: “The White-Collar Sweatshop”, p. 85, and “Hard Work”, pp. 92–94.]. Much of an entry-level banker’s first years goes into drafting presentations to pitch for new business, and into writing up the minutes of client meetings[4Source 4Philippe Espinasse, IPO: A Global Guide, 3rd ed. (Hong Kong University Press, 2018), §1.6.1, “Entry level and beyond”.].

How you get in

Analysts are college graduates, and a common route is a summer internship after the second or third year, which the textbook calls very helpful and hard to get, because recruiting is limited to a small number of universities[1Source 1David P. Stowell, Investment Banks, Hedge Funds, and Private Equity, 3rd ed. (Academic Press, 2017), ch. 10: the division, p. 222; the positions, p. 223; analysts, pp. 223–224.]; a high proportion of new hires have spent a summer at a bank first[4Source 4Philippe Espinasse, IPO: A Global Guide, 3rd ed. (Hong Kong University Press, 2018), §1.6.1, “Entry level and beyond”.]. The textbook’s advice for candidates is plain: build spreadsheet skills as an undergraduate and take accounting and economics; finance and investing classes help but are not essential[1Source 1David P. Stowell, Investment Banks, Hedge Funds, and Private Equity, 3rd ed. (Academic Press, 2017), ch. 10: the division, p. 222; the positions, p. 223; analysts, pp. 223–224.]. The textbook’s example of a large firm’s summer analyst programme is ten weeks long, doubles as a tryout, and supplies many of its full-time hires[5Source 5K. Thomas Liaw, The Business of Investment Banking: A Comprehensive Overview, 3rd ed. (Wiley, 2011), “Investment Banking Financial Analysts”, pp. 52–53.]. New analysts then go through a training programme on financial and modelling tools before most of the learning happens on the job[5Source 5K. Thomas Liaw, The Business of Investment Banking: A Comprehensive Overview, 3rd ed. (Wiley, 2011), “Investment Banking Financial Analysts”, pp. 52–53.].

The hours

A typical week is 80 to 100 hours in the office, sometimes with all-nighters and almost always with weekend work[1Source 1David P. Stowell, Investment Banks, Hedge Funds, and Private Equity, 3rd ed. (Academic Press, 2017), ch. 10: the division, p. 222; the positions, p. 223; analysts, pp. 223–224.]. The ethnography records analysts calling the programme “two years in boot camp”[3Source 3Karen Ho, Liquidated: An Ethnography of Wall Street (Duke University Press, 2009), ch. 2: “The White-Collar Sweatshop”, p. 85, and “Hard Work”, pp. 92–94.]. The reasons are structural rather than personal, and the article on why the hours are longWhy do investment bankers work such long hours?Junior bankers work 80 to 100 hours a week because deals run on deadlines, several at once, and senior comments arrive late. The mechanics, from the sources.Words of the trade · revised 28 September 2026 · 900 words · 9 sources · 4 min goes through them. The same textbook lists what the job asks for besides stamina: a good attitude, strong analytical skills, attention to detail and the ability to work in a team[1Source 1David P. Stowell, Investment Banks, Hedge Funds, and Private Equity, 3rd ed. (Academic Press, 2017), ch. 10: the division, p. 222; the positions, p. 223; analysts, pp. 223–224.].

How long it lasts and what comes next

The analyst position is for two or three years, and most analysts are asked to leave at the end of it, to pursue a master’s degree or another job; depending on the year and the firm, twenty to fifty percent are asked to stay with the promise of promotion to associate[1Source 1David P. Stowell, Investment Banks, Hedge Funds, and Private Equity, 3rd ed. (Academic Press, 2017), ch. 10: the division, p. 222; the positions, p. 223; analysts, pp. 223–224.]. Historically the positions were two years with fewer than one in five kept for a third[1Source 1David P. Stowell, Investment Banks, Hedge Funds, and Private Equity, 3rd ed. (Academic Press, 2017), ch. 10: the division, p. 222; the positions, p. 223; analysts, pp. 223–224.]. Departing analysts often go to business or law school, or take offers from private equity firms, hedge funds and companies[5Source 5K. Thomas Liaw, The Business of Investment Banking: A Comprehensive Overview, 3rd ed. (Wiley, 2011), “Investment Banking Financial Analysts”, pp. 52–53.]. Because so many analysts left early for private equity and technology firms, many banks have reworked the programme: a full three-year track for everyone, many more promotions to associate at the end, limits on weekend work and total hours, rotations through several groups, faster pay rises, and more use of technology for routine work such as preparing pitch books[1Source 1David P. Stowell, Investment Banks, Hedge Funds, and Private Equity, 3rd ed. (Academic Press, 2017), ch. 10: the division, p. 222; the positions, p. 223; analysts, pp. 223–224.].

Pay

Pay is a salary plus a variable bonus[3Source 3Karen Ho, Liquidated: An Ethnography of Wall Street (Duke University Press, 2009), ch. 2: “The White-Collar Sweatshop”, p. 85, and “Hard Work”, pp. 92–94.]. The textbook notes that compensation does not vary much during the first few years and can vary dramatically after them, with performance[1Source 1David P. Stowell, Investment Banks, Hedge Funds, and Private Equity, 3rd ed. (Academic Press, 2017), ch. 10: the division, p. 222; the positions, p. 223; analysts, pp. 223–224.]. Figures change quickly and differ by city and firm, so none are given here.

Frequently asked questions

Do you need a finance degree to be an investment banking analyst?

No. The textbook cited above says finance and investing classes are useful but not essential; spreadsheet skills, accounting and economics matter more, and the trade itself is taught on the job in the first years[1Source 1David P. Stowell, Investment Banks, Hedge Funds, and Private Equity, 3rd ed. (Academic Press, 2017), ch. 10: the division, p. 222; the positions, p. 223; analysts, pp. 223–224.].

How long is the analyst programme?

Two to three years at most firms. Historically it was two, with a third year for a minority; many firms now offer a full three-year track and promote more analysts to associate at the end of it[1Source 1David P. Stowell, Investment Banks, Hedge Funds, and Private Equity, 3rd ed. (Academic Press, 2017), ch. 10: the division, p. 222; the positions, p. 223; analysts, pp. 223–224.].

What is the difference between an analyst and an associate?

The associate is one rank up, usually hired from business school or promoted from the analyst class, checks the analyst’s work and is responsible for the presentations; the associate articleWhat does an investment banking associate do?An investment banking associate runs the day-to-day of a deal: checking the analysts’ models, owning the presentations and making the numbers tell a story.Jobs and ranks · revised 28 September 2026 · 682 words · 4 sources · 3 min covers the role[1Source 1David P. Stowell, Investment Banks, Hedge Funds, and Private Equity, 3rd ed. (Academic Press, 2017), ch. 10: the division, p. 222; the positions, p. 223; analysts, pp. 223–224.].

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  author       = {{xlsx.dev}},
  title        = {{What does an investment banking analyst do?}},
  howpublished = {xlsx.dev Wiki},
  year         = {2026},
  month        = sep,
  url          = {https://xlsx.dev/wiki/investment-banking-analyst}
}