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market analysis of top 2 investment banks
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AUTHORS: VAISAKH.S & PREETHI ANNIE ALEX
2014 VIT BUSINESS SCHOOL
Banking Sector-
Investment Banking:
JP MORGAN and
GOLDMAN SACHS
1
VIT Business School:
VIT University was established in 1984 by well-known educationalist and former
parliamentarian, Dr. G. Viswanathan, founder & chancellor. Dr. V. Raju Former Professor of
state University of New York USA Currently Vice Chancellor, Dr. Anand Samuel Pro Vice
Chancellor Chennai Campus is in Vandalur- Kelambakkam Road. VIT University has more than
17 Bachelor’s & 32 Master’s Programs, 29000 (including 1000 foreign students from 44
Countries and 4000 faculty members.
Accreditation.
The National Assessment and Accreditation Council (NAAC) of the University Grants
Commission (UGC) has accredited the University with a “A” Grade.
Programs at VIT are accredited by the Institute of Engineers India.
The Accreditation Boards for Engineering and Technology (ABET) Of the USA accredited
the Civil, Mech, CSE, Biomedical, ECE, EEE programmes.
VIT Business School, under the Aegis VIT University has created a niche for itself as an
institution promoting excellence in management education and research with Dr. M.J Xavier as
an Executive Director.
2
Contents
Banking Sector- Investment Banking: JP MORGAN and GOLDMAN SACHS ................................................. 0
VIT Business School: ...................................................................................................................................... 1
Introduction to Banking Sector ..................................................................................................................... 3
Major Competitors in Investment Banking ................................................................................................... 3
Company Analysis ......................................................................................................................................... 4
Market Share Analysis................................................................................................................................... 5
Labour Capital Ratio of JP Morgan Chase and Goldman Sachs. ................................................................... 7
Future Prediction of Price of JPMorgan Chase and Goldman Sachs ............................................................. 8
Conclusion ................................................................................................................................................... 10
3
Introduction to Banking Sector
The banking sector is the most dominant sector of the financial system in India. Significant
progress has been made with respect to the banking sector in the post liberalization period.
Liberalization has created a more competitive environment in the banking sector
Types of services
Commercial Banking
Investment Banking
Investment Management
Wealth Management
Asset Management
Mutual Fund
Corporate banking
Major Competitors in Investment Banking
JP Morgan Chase
Bank of America
Goldman Sachs
Citigroup
Morgan Stanley
Deutsche Bank
Barclays
Credit Suisse
USB
Well Fargo
4
Company Analysis
Company: JP Morgan Chase
It is an American multinational banking and financial services holding company. It is the largest
bank in the United States It is founded in the year 2000 .The current Chairman is Jamie Dimon.
The Revenue and employees in the year 2013 are about US$ 96.60 BILLION and 2,55,000
respectively.
Headquarter
Company headquarter in India is in 270 Park Avenue, New York City, U.S
Nearest Locations
TV Loganathan Towers,
II Floor, No. 95 V M Street,
R K Salai, Mylapore,
Chennai - 600 004
Company: Goldman Sachs
It is an American Multinational Investment Banking and Financial Service and it operates in
about 25 countries . It was founded in the year 1869 . The current Chairman is Blankfein. The
Revenue and employees in the year 2013 are about US$ 34.21 BILLION and 32,900
respectively.In 1896 the company has been listed in the New York Stock Exchange (NYSE) and in
2002 Goldman, Sachs & Co has become one of the largest market makers in the industry.
Headquarter
Company headquarter in India is in 200 West Street, New York , US
Nearest Locations
Prince Ville Embassy Golf Link Business Park,
Off Intermediate Ring Road,
Bangalore,
Karnataka 5600
5
Market Share Analysis
On the Basis of Turnover of JP Morgan Chase and Goldman Sachs
The below diagram is the Pie Chart of the turnovers for all the major investment
banks. In this we find that JP Morgan has the highest turnover of 16% and
Goldman Sachs has around 6% in the year 2013.
The above diagram is the Pie Chart of the turnovers for all the major investment banks.
INFERENCE
When we analyse this Pie Chart we find that JP Morgan has the highest turnover of 16% and
Goldman Sachs has around 6% in the year 2013.
JP Morgan Chase 16%
Bank of America
Merrill Lynch 15%
Goldman Sachs 6%
Citigroup 13% Morgan
Stanley 6%
Deutsche Bank 7%
Barclays 8%
Credit Suisse 4%
UBS 11%
Wells Fargo 14%
TURNOVER FOR THE YEAR 2013 ( in billion))
6
On the basis of Combined Turnover and Employees of JP Morgan and Goldman
Sachs.
INFERENCE
After Analysis Bar Graph, we can conclude that in JP Morgan Chase the employees are around
2,64900 well as in Goldman Sachs the employees are around 32,900.
0 50,000 100,000 150,000 200,000 250,000 300,000
JP Morgan Chase
Bank of America Merrill Lynch
Goldman Sachs
Citigroup
Morgan Stanley
Deutsche Bank
Barclays
Credit Suisse
UBS
Wells Fargo
JPMorganChase
Bank ofAmericaMerrillLynch
Goldman Sachs
Citigroup
MorganStanley
Deutsche Bank
BarclaysCreditSuisse
UBSWellsFargo
No Of Employees 255,041 245,452 32,900 251,000 55,794 98,219 139,000 46,000 60,205 264,900
Turnover ( in million) 96,600 88,940 34,210 76,360 36,840 40,840 47,920 26,730 68,900 83,780
BAR CHART ON TURNOVER AND EMPLOYEES
7
Labour Capital Ratio of JP Morgan Chase and Goldman Sachs .
INFERENCE
After analysis of the above Bar Graph we find that the Labour capital ratio of JP Morgan Chase is
comparatively less when compared to Goldman Sachs which has around 2.493 , it is because the
employees are less than the turnover.
2.493
0.726
0.647
0.397
0.9012
1.238
GOLDMAN SACHS
Bank Of America
Citi Group
Deutshe Bank
JP morgan chase
Morgan stanley
Labour Capital Ratio
8
Future Prediction of JPMorgan Chase and Goldman Sachs using Weka
SOURCE
The Data has been taken for past two month’s i.e. from 15 July to 15 Sep using Weka Software.
INFERENCE
In the above result, it can be said that the future prediction for JP Morgan is rising whereas the
future prediction for Goldman Sachs is declining.
9
Future Prediction of Price for JP Morgan Chase and Goldman Sachs using SPSS
JP MORGAN CHASE
GOLDMAN SACHS
SOURCE
SPSS Software
160
165
170
175
180
185
1 6 11162126313641
ACTUAL PRICE
ESTIMATEDPRICE
10
Conclusion
As Investment banks both JP MORGAN CHASE & CO and Goldman Sachs is doing pretty good Job in the
banking world. Both the bank has done several advancements in their industry and securing their roles
as the leading banks in the world. They offers incentives to keep their customers coming back and
introduce them to new products as well as referral programs to bring on new customers and expand its
market. Both banks concentrate on cutting edge strategies to increase their customer base, They are the
top banks in the world that makes these banks the best ones.
For Further details Contact
Dr. P James Daniel Paul, Professor VIT BS, Chennai.
Email: [email protected]
Tel. +91-44 3993 1040
HP: +91 9840294590
Vaisakh S & Preethi Annie Alex , Students of VIT BS, Chennai
Email:[email protected], [email protected]
Vaisakh S mob no.+91 9003514659
Preethi Annie Alex mob no. +91 8939771738