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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))

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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

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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: jamesdanielpaul.p@vit.ac.in

Tel. +91-44 3993 1040

HP: +91 9840294590

Vaisakh S & Preethi Annie Alex , Students of VIT BS, Chennai

Email:vaisakhssund@gmail.com, anniealx94@gmail.com

Vaisakh S mob no.+91 9003514659

Preethi Annie Alex mob no. +91 8939771738