Investment Banking In Singapore Top Banks Salary Jobs

Investment Banking in Singapore

Should you try to get into investment bankingGet Into Investment BankingTo get into investment banking, know where to begin with, understand how investment banks recruit, master investment and technical banking skills, and work on your soft skills along with the required degree and knowledge.read more in Singapore? How is the market? What is the pay structure? Can you grow well in investment banking in Singapore?

In this article, we will investigate everything in detail.

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We will talk about the following in this article: –

Singapore Investment Banking Market Overview

Getting into the Singaporean market is not easy, especially if you are from a different country and do not have any experience in Singapore. But it is possible.

In Singapore, the market is not emerging; but you will encounter emerging markets in many South-Asian countries when you begin to work.

Investment banking is quite established here, but the nature of deals and market scope are distinguishable. Here are a few things about the market that you should keep in mind: –

Bulge Bracket BanksBulge Bracket BanksTop 10 bulge bracket investment banks are - Blackstone, Goldman Sach & co, Morgan Stanley, J.P Morgan Chase & co, Bank of America Merrill Lynch, Credit Suisse, Citi, Deutsche Bank, HSBC, UBS.read more primarily do the large deals. These include Standard Chartered, HSBC, DBS, Citibank, etc., among the few who do a lot of bidding.Singapore’s investment banking firms are relatively smaller and usually deal with smaller deals. Rarely do they handle any mega-deal over $1 billion? However, if any mega-deal is executed, everybody (the major names) would be involved in the deal.The issue with the Singaporean market is that most mid-size and large companies are family-owned or state-owned. And as we know, the thing with the family business – people do not want to divest their own companies. As a result, M&A deals are limited. Most of the bulge bracket banks here, thus, try to own the deals which are at a lower level. As a result, very few markets can experience top-notch banks competing over middle-market deals. But in Singapore, it is a reality.The primary deals in the Singaporean market involve shipping and natural resources. The Singaporean market is also the hub of cross-border deals – it may be the case because of the secured economyEconomyAn economy comprises individuals, commercial entities, and the government involved in the production, distribution, exchange, and consumption of products and services in a society.read more offered by the government.

Investment Banking in Singapore – Services Offered

Even if Singapore has a different market in investment banking than the UK and the USA, the services offered are almost the same. Let us have a look at the services provided by the top-notch and local investment banks in Singapore: –

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IPOs: Most of the investment banks in Singapore advise the companies on how to go about IPOs and list their shares on Singapore Exchange (SGX-ST). The investment banks help their clients understand the rules and regulations of the Singapore Stock Exchange so that there is no room for error and everything happens hassle-free. They also advise the companies on capital structure, marketing themes, invitation structure, pricing, and timing.Equity and Equity-Linked Offerings: This is one of the most important services offered by Singaporean investment banks. They advise companies on various equity-related products and offerings. In addition, these investment banks guide their clients to financeFinanceFinance is a broad term that essentially refers to money management or channeling money for various purposes.read more projects and improve strategic initiatives. They also advise companies on the size, structure, pricing, and timing of any equity-related products/offerings like block trades Block TradesBlock Trades are securities that are bought and traded in bulk quantities by an investor, and they involve negotiations of a large number of equity and bond securities that are traded between two parties, usually with the assistance of an investment banker, at an appropriately arranged price and outside of the stock market to minimize the effect on the security’s price.read more, rights issuesRights IssuesThe term “right issue of shares” refers to the offering of shares to all existing Equity or Preference shareholders of the Company in proportion to their current shareholding in the Company.read more, capital raising, and convertible securities offerings.Debt Capital Markets: Investment banks in Singapore work mainly in Asian markets, and they all have a dedicated global sales and trading team and a great credit research platform. Such a team and support allows most investment banks in Singapore to provide exceptional advice, offer amazing market insights, and unparalleled gift execution. These banks cover agencies, corporates, supranationalSupranationalSupranational refers to an international group of states that gives the union negotiating authority to interfere in matters concerning each member state’s sovereignty.read more, funding solutions, sovereigns, etc.Private Placements: Singaporean investment banks provide a wide range of services in private equity for both listed and private companies. These banks offer pre-IPOPre-IPOA pre-IPO is a placement method whereby the company offers its stocks in large blocks to the private investors at a discounted price before these shares are listed on the stock exchange for public trading. read more convertible securities, growth capitalGrowth CapitalGrowth Capital, also called Expansion capital, is the amount of money offered to the fast-growing businesses requiring finances to expand their operations or new market ventures. All in all, it helps facilitate target firms for accelerating their growth rate. read more, mezzanine debt, equity, etc.Mergers & Acquisitions: As already mentioned, most of the M&A deals in Singapore are “below par.” But that does not mean middle-market deals do not demand any expertise. Investment banks here provide corporate advisory, and they have a strong team that deals with the technical details of all the deals. But, of course, the most important ingredient is the bank-client relationship because only the whole deal is handled based on that. These investment banks help their clients in cross-border and domestic transactions by offering industry insights, a global perspective, solid experience, and seamless execution. These banks execute deals in Singapore but advise companies in Malaysia, Indonesia, and Thailand.

List of Top Investment Banks in Singapore

Investment banking is strongest in Singapore if we compare it with the standing of the private equity marketEquity MarketAn equity market is a platform that enables the companies to issue their securities to the investors; it also facilitates the further exchange of these stocks between the buyers and sellers. It comprises various stock exchanges like New York Stock Exchange (NYSE).read more. Many top investment banks in Singapore offer great services and maintain a cordial relationship with clients.

Here is a list of top investment banks in Singapore that are most notable: –

BAMLNomuraGoldman SachsJ.P. MorganBarclaysCitiDeutsche BankMorgan StanleyHSBCStandard CharteredDBSOCBC

Investment Banking in Singapore – Recruitment Process

The recruitment process in investment banking in Singapore is different as the market is small. So it would be very tough if you try to get into it traditionally.

Thus, if you have an option and you are a foreign national, instead of the Singapore market, try the London market for investment banking.

However, if you decide to get into the Singaporean investment banking market; here are a few things you should keep in mind: –

Networking is Key: In a small market, the jobs are often unadvertised, and most of the time, recruitment works through a reference. Thus, your chances would be very bleak if you do not network. Networking means making cold calls and sending emails to bulk banks at topmost positions. Networking here means trying to pitch them in person. Yes, it is not easy to reach out directly and get rejected repeatedly; most of the time, these top professionals do not have time to listen to the pitch of a youngster. To get into investment banking in Singapore, you need to network through cold calls, emails, and constant in-person pitching.Internships: Investment banks will only select those with a good background when the market demand is low (as smaller teams and fewer people are recruited). So, you need to hustle and get two-three summer internships. If you want to get into investment banking, it is great to try out bulge bracket banks for internships. Try middle bracket banks if you cannot land an internship or two in bulge bracket banks. The idea is to have hands-on experience in investment banking and get recognized by a top-notch investment bank. If you manage to get interviewed by a bank later on (because of your networking skill and reference), these internship experiences would seem invaluable to you. Do have a look at how to get an Investment Banking InternshipInvestment Banking InternshipMany investment banks offer internships in investment banking, with durations ranging from 3 months to 2 years depending on the profile you choose as an intern. And if you complete your internship successfully, you will undoubtedly see yourself as an investment banker in the near future.read moreFit Interview: The first round of interviews is often a fit interview. Normally corporate recruiters are appointed to conduct the interview. Here you would be checked whether you have the right background for the job or not. Banks that depend on the agencies to recruit a few entry-level candidates need to leave the things to corporate recruiters. So, you must ensure you know what it takes to impress the corporate recruiter to get through.Next Rounds of Interviews: Next rounds of interviews are usually done similarly. First, there will be analysts who will be taking your interview. Then, if you get through, you must sit with an associate. Finally, if you clear the round, you must sit with MD/Partner and HR representative/s. During these sessions, you will be asked to present a case presentation. But remember, the emphasis is more on sales than technicalities. So it would help if you prepared similarly.Language and University: The culture is diverse, and knowing Chinese is not mandatory. But if you know Chinese, it would help. Also, if you have an education in any university in Singapore, that would be an added advantage. Every investmentInvestmentInvestments are typically assets bought at present with the expectation of higher returns in the future. Its consumption is foregone now for benefits that investors can reap from it later.read more bank likes local candidates and people who belong to the place. That is why knowing the language and pursuing an education in Singapore would help you cut the crowd.

Investment Banking in Singapore – Culture

The Singaporean investment banking market is much smaller. Thus, the offices’ culture is much different from Top banks in USATop Banks In USAThe top ten banks in the United States are as follows:1. JPMorgan Chase 2. Bank of America 3. Wells Fargo 4. Citigroup 5. US Bank 6. Truist Bank 7. PNC Financial Services Group 8. TD Group US Holdings 9. Bank of New York Mellon 10. Goldman Sachs Groupread more and the UK.

The first thing is that bankers here rarely work on major deals; thus, the external pressure is less than in London or the USA. But that does not mean that you would not work longer hours. On the contrary, as an investment banker, you will work long hours (not 100+ hours per week, but close), not for external pressure, but to complete your tasks since the team is pretty small in investment banking firms.The second thing relevant to the Singaporean investment culture is that people mostly work in closely-knit teams. And even MDs are accessible to entry-level employees. So, if you want to ask a question, you can walk into MD’s room and talk to him. And no one screams at anyone, even if new employees make mistakes (which is quite normal as they’re just beginning to adapt to a new environment).The third most important thing to consider about the investment banking culture in Singapore is that the focus is more on sales than on technicalities. That is why people rarely do modeling and valuation, and more concentration is given to sales and pitch books.

Also, have a look at an Investment Banker LifestyleInvestment Banker LifestyleLong working hours, weekend work, a lot of hard work, and little sleep are all part of an investment banker’s life. Life as an investment banker is described as hectic, but for those who want to live a life of dedication, competition, and risk while also performing well, investment banking is the appropriate choice.read more

Investment Banking in Singapore – Salaries

Singapore’s salary is quite good, especially if you start your career with a bulge bracket bank. So even if you must go through a lot to get an entry, the result is quite satisfying. With a great basic salary, you will also get a hefty bonus.

Let us look at the average salaries of people working in investment banks in Singapore. These figures are assimilated by the survey data collected from various recruitment agencies: –

source: efinancialcareers.com

From the above figures, we can see that if you start as an analyst in Singaporean investment banks, you will earn at least S$118k on average, with a 17% and 43% average bonus.

As you grow in your career and get promoted to an associate, you will earn an average of around S$171k on average, with bonuses of up to 58%.

As a Vice President, you will earn around S$263k on average, and as a Director, you can earn around S$381k on average.

As a Managing Director of an investment bank, you may earn around S$506k on average.

So, you can understand that if you stick to investment banking for a while, you will earn a decent amount of money over the years.

Also, have a look at an Investment Banking Associate SalaryInvestment Banking Associate SalaryAn Investment Banking Associate is hired by an investment bank. An Associate can be a promoted Analyst after three or four years, or he can be hired directly from a reputable business school. A average annual compensation for an Investment Banking Associate is from $75,000 to $250,000.read more

Investment Banking in Singapore – Exit Opportunities

As investment banking turns out to be a great career, people do not exit their jobs. It is not like 2-3 years of pursuing a career in investment banking Career In Investment BankingAn investment banking personnel is a motivated professional who aims to help their clients reach their financial goals and objectives. The top four investment banking careers are - Analyst, Associate, Vice president, Managing director. read more and then shifting to something else. No. But there are exceptions, and few people change jobs whenever they need to (or want to explore different opportunities).

Usually, there are two exit opportunities in Singapore: –

People leave investment banking for private equity funds. As a result, private equity has started to make its mark in the Singaporean market.People go for hedge fundsHedge FundsA hedge fund is an aggressively invested portfolio made through pooling of various investors and institutional investor’s fund. It supports various assets providing high returns in exchange for higher risk through multiple risk management and hedging techniques.read more after a few years of experience in investment banking.

Also, look at this detailed article on HedgeHedgeHedge refers to an investment strategy that protects traders against potential losses due to unforeseen price fluctuations in an assetread more Funds 3. Strategy Consulting 4. Fin-Tech 5. Advisory for large corporates.” url=”https://www.wallstreetmojo.com/investment-banking-exit-opportunities/”]Investment Banking Exit Opportunities[/wsm-tooltip]