INTRODUCTION:

This report shows the information about Investment Banking Industry, in which I want
to enter in my future career. In this report, I choose three banks, those are: J.P.
Morgan as a leader, Green Investment bank as sun rise and Royal Bank of Canada
Capital Markets as a sunset. This report also shows the functions of investment
banking as well as industry analysis with the help of PESTEL. Furthermore, it shows
detailed profiles of above mentioned three banks in terms of their strengths
weaknesses opportunities and threats as well as their market position.
KEY FEATURES OF INVESTMENT BANKING:
Investment Banks help companies to raise funds by acting as intermediary between
investor and who want money. If any organization needs funds for business growth,
it can issue its stocks or bonds in capital market, but due to lack of knowledge, they
do not go in those markets directly. Therefore, for this purpose companies get
services of financial institutions who have enough experience and minimise their risk
by transferring it towards banks. Banks also provide financial services as well as
advice regarding merger and acquisitions.
Today many of saving banks diversified their businesses into Non-banking financial
services such as deal with mutual funds, stock broking, insurance, assets and risk
management etc. These banks help customers to choose a optimistic investment
portfolio by avoiding difficulties faced due to information asymmetries (Heffernan,
2005:41-42).
INDUSTRY ANALYSIS:
All companies affect by external environments, so, for the identification of those
factors, PESTEL analysis framework is very useful tool and by using this, companies
able to respond those factors for being sustainable in the market. Following are the
factors that has impact on the performance of the investment banking sector:
Political and legal factors: Political and legal factors in terms of different
strict rules and regulations has significant impact on this sectors and on its
decisions as well. British government has set some policies for investments
and financial institutions have to comply these rules to make sure that it will
work effectively and according to law, otherwise they can bear high cost in
case of violation, it may be in shape of fine or something else.
Environmental and Social Factors: Banks do not have too much impact on
environment, therefore environmental factors are not related in real sense
with this sector but nowadays, some investment banks are introducing this
concept by promoting friendly environment investments such as Green
Investment bank. As for as social factors are concerned, trust is very
important for banker for attracting customers. If they do not have good repute,
companies do not like to invest through those intermediaries, if they feel that
their investment is not secure.
Technological and Economical Factors: Now in the current technical era,
everything is going to be more advanced. In all businesses, R&D departments
continuously involve in searching new technologies for more convenience.
Therefore, companies needs to respond to these factors and should upgrade
their IT systems according to current technologies for being compatible in
market. There are so many other economical factors that can effect
performance and create risk for investment banks such as profit margins,
decrease in savings etc. In short, if country's economical position is not stable
and unfavourable then it's very difficult to run business effectively.
PROFILE OF J.P. MORGAN INVESTMENT BANK:
J.P. Morgan's major strength is that it is a global leading investment bank with
largest client base and founded 200 years ago and has a credible history. It serves
almost 20,000 clients and operates in more than 100 countries by offering wide
range of financial services to different type of corporations. It provides advice for
managing business risks, to raise funds and helps its clients achieve their goals.
Moreover, according to J.P. Morgan's goals, it wants to contribute in well functioning
markets and global economic growth (J.P. Morgan, 2014). Following technical
analysis chart shows financial position of JP Morgan for one year:

Figure 1: Technical Analysis of JP Morgan (Yahoo Finance 2014)
PROFILE OF GREEN INVESTMENT BANK:
This bank came into existence in May 2012 and started its operations in October
2012. Green Investment bank based on very distinctive mission which is "to
accelerate the UK's transition to a green economy". Therefore they have "double
bottom line" in terms of green impact as well as financial return. It invests in that
projects "which are both green and commercial" and helps Government by
employing cost effective ways (Green Investment Bank, 2014).
According to Bloomberg (2014), It works on three basic areas which are offshore
wind, waste and energy and aims to spend 80% of its funds on these projects. It
decided to spend 700 million pounds on "carbon-cutting projects" and 668 million to
"clean-energy projects". Following chart shows financial position of Green
Investment Bank for one year:

Figure 2: Historical chart of Green Investment Bank (Green Investment Bank 2014)
PROFILE OF RBC CAPITAL MARKETS:
RBC Capital Markets is an investment bank established in 1869 that offers tailored
products to its clients globally in over 100 countries. They have 70 offices in 15
different countries, operated by significant number of professionals. This bank was
established in 1869 (RBC Capital Markets, 2014).
It earned C$507 million profit in previous year which shows 32% increase
(Bloomberg, 2014) but in 1st quarter 2014, fees collected by its products is $449.26
million which is decreased by 16% as compared to previous year (Financial Times,
2014). Following basic chart shows financial position of RBC Capital Market for 5
days:

References:
Alexander, D. (2014). TD, RBC Top Estimates on Consumer Banking, Wealth Gains.
[online] Bloomberg. Available at: http://www.bloomberg.com/news/2014-05-22/td-
rbc-top-estimates-on-consumer-banking-wealth-gains.html [Accessed 25 May.
2014].
Financial Times, (2014). League Tables Investment Banking Review FT.com.
[online] Available at:
http://markets.ft.com/investmentBanking/tablesAndTrends.asp [Accessed 25
May. 2014].
Green Investment Bank, (2014). What We Do | Green Investment Bank. [online]
Available at: http://www.greeninvestmentbank.com/what-we-do/default.html
[Accessed 4 May. 2014].
Green Investment Bank, (2014) UK Green Investment Bank Annual Review. [online]
available from <http://www.greeninvestmentbank.com/media/25362/gib-annual-
review-london-low-res.pdf> [3 July 2014]
Heffernan, S. (2005). Modern Banking. 1st ed. London: John Wiley & Sons Ltd,
pp.41-42.
J.P. Morgan, (2014). Investment Bank | Investment Banking with a complete range
of Financial Services | J.P. Morgan. [online] Available at:
https://www.jpmorgan.com/pages/jpmorgan/investbk [Accessed 4 May. 2014].
Morales, A. (2014). U.K. Green Investment Bank Aims to Allocate $1.2 Billion.
[online] Bloomberg. Available at: http://www.bloomberg.com/news/2014-05-21/u-
k-green-investment-bank-aims-to-allocate-1-2-billion.html [Accessed 25 May.
2014].
Royal Bank of Canada Capital Markets, (2014). RBC Capital Markets - About
RBCCM - Our Firm. [online] Available at: https://www.rbccm.com/about/cid-
202770.html# [Accessed 4 May. 2014].
Yahoo Finance, (2014) JPM.L Technical Analysis | JPMORGAN CHASE Stock -
Yahoo! UK & Ireland Finance [online] available from
<https://uk.finance.yahoo.com/q/ta?s=JPM.L> [3 July 2014]
Yahoo Finance, (2014) RBCM.ME Technical Analysis | RBC Stock - Yahoo! UK &
Ireland Finance[online] available from
<https://uk.finance.yahoo.com/q/ta?s=RBCM.ME&t=5d&l=on&z=l&q=l&p=&a=&c
=> [3 July 2014]


Comments: there is lack of financial analysis should use financial figures and graphs
for describing market position. tables and graphs.