Investment Banking Salary UK: What You Earn from Analyst to Managing Director
What investment bankers earn in the UK at each level, from graduate analyst to managing director, why bonuses make pay so uneven, and how people actually get in.
By Tony Musso on
Investment banking is one of the best-paid graduate careers in the UK. TonyKnows career data puts base salaries at around £55,000 to £75,000 for new analysts, plus a bonus. Mid-career bankers earn around £100,000 to £200,000 plus bonus, and managing directors can earn around £300,000 to £1,000,000 or more.
Those ranges are wide for a reason. Pay depends on the bank, the team you join, how the year went and how you performed, and the bonus can change total pay a lot from one year to the next. The hours are long too, with 70 to 100 hours a week common at junior level. Here is how pay works at each step and what it takes to get there.
Investment banking salary at a glance
| Career stage | Typical titles | Pay (TonyKnows career data) |
|---|---|---|
| Starting | Analyst | around £55,000 to £75,000 + bonus |
| Mid-career | Associate, vice president | around £100,000 to £200,000 + bonus |
| Senior | Managing director | around £300,000 to £1,000,000+ |
These are UK figures, and most UK investment banking jobs are in London. Treat them as a guide to the shape of the career rather than a promise. Base salaries move between banks and divisions, and the bonus is never guaranteed.
How the career ladder works
Investment banks use a similar title structure, though the exact names and time at each level vary from firm to firm.
Analyst
Most people start as analysts straight from university, through a graduate programme. Analysts build financial models, prepare pitch books and presentations, run valuations and do much of the detailed work on deals. This is where the longest hours sit. Analyst programmes usually last a few years, and many analysts leave at the end to move into private equity, corporate development or other finance roles.
Associate
Associates manage the analysts' work, check models and presentations, and take more contact with clients. Some associates are promoted from analyst; others join after an MBA or from another career such as law, accountancy or consulting. This is the start of the mid-career pay band in the table above.
Vice president
Vice presidents (VPs) run the day-to-day work on deals. They coordinate the team, handle much of the client relationship on live transactions, and are judged more on how deals are delivered than on technical output. Pay rises again, and the bonus becomes a bigger share of total earnings.
Director
Directors sit just below managing director. Some banks call this level executive director or senior vice president. Directors start to bring in work as well as run it, and they are usually being assessed for promotion to MD on the revenue and client relationships they generate.
Managing director
Managing directors (MDs) lead client relationships and win mandates. Their pay is tied most closely to the business they bring in, which is why the senior range is so wide. Few people who start as analysts reach MD, and those who do usually take well over a decade.
How bonuses work
Bonuses are what make investment banking pay so variable. In general:
- They vary widely by bank. Different banks pay very differently, even for the same job title.
- They vary by division. Teams in strong markets usually get bigger pools than those having a quiet year.
- They vary by year. When deal activity slows, bonus pools shrink, sometimes sharply.
- They vary by person. Your ranking within your class affects what you receive.
At senior levels, part of the bonus is often paid in shares or deferred over several years, and you may lose deferred amounts if you leave. Ask how the bonus is structured before you compare offers, and don't plan your finances around a figure you have not been paid yet.
What the job is really like
The pay is high because the demands are high. TonyKnows career data lists the core skills as financial modelling, Excel, valuation, stamina and attention to detail. In practice that means:
- long and unpredictable hours, especially when a deal is live;
- work that has to be accurate under time pressure;
- weekends interrupted at short notice, particularly at analyst level;
- a culture where your reviews and ranking shape your pay and promotion.
Common specialisms include M&A (mergers and acquisitions), where you advise companies on buying or selling businesses, and equity capital markets, where you help companies raise money through share listings such as IPOs.
How to get into investment banking in the UK
Entry is very competitive, and banks recruit most of their analysts a year or more ahead.
| Route | How it works | Who it suits |
|---|---|---|
| Spring weeks | Short insight programmes, often in your first year of university | First-year undergraduates |
| Summer internships | Paid internships, usually in your penultimate year, that can lead to a graduate offer | Penultimate-year students |
| Graduate analyst programme | Direct entry after your degree | Final-year students and recent graduates |
| Degree apprenticeship | Some banks offer apprenticeships that combine work and a degree | School leavers |
| Lateral move | Join as an associate from another finance or professional role | People with relevant experience |
Most graduate hires have a strong degree, and the career data notes that banks often prefer candidates from top universities. Your subject matters less than you might think, but you need to show you can handle numbers and understand how deals work. Our guide to the best-paid degree apprenticeships in finance and law covers the school leaver route.
Related careers with strong pay
Investment banking is not the only way into deal work or high-paying finance. These careers use many of the same skills, often with more predictable hours.
| Career | Starting | Mid-career | Senior |
|---|---|---|---|
| Investment banker | around £55,000 to £75,000 + bonus | around £100,000 to £200,000 + bonus | around £300,000 to £1,000,000+ |
| Corporate finance analyst | around £45,000 to £65,000 | around £75,000 to £110,000 | around £130,000 to £250,000+ |
| Financial analyst | around £28,000 to £40,000 | around £50,000 to £80,000 | around £90,000 to £150,000+ |
Corporate finance teams, including those at accountancy firms and advisory boutiques, work on M&A, fundraising and restructuring, often on smaller deals. Read our corporate finance analyst career guide for how that route compares. Many people also reach banking or corporate finance after qualifying as accountants, which our UK accounting qualifications guide explains.
If you are weighing banking against other options, browse UK salaries by career, or use Career Compass to see which careers suit how you like to work.
Read the investment banker career guide
Frequently asked questions
What is the starting salary for an investment banker in the UK?
TonyKnows career data puts the starting base salary for an investment banking analyst at around £55,000 to £75,000, plus a bonus. The exact figure depends on the bank and division, and the bonus varies with the bank's results and your own performance.
How much does a managing director in investment banking earn in the UK?
Managing directors can earn around £300,000 to £1,000,000 or more, according to TonyKnows career data. Pay at this level depends heavily on bonuses and the revenue the MD brings in, so it varies a great deal between people, banks and years.
How big are investment banking bonuses?
Bonuses vary widely by bank, division and year, as well as your own ranking. A strong year can lift total pay well above base salary, while a weak deal market can shrink bonus pools sharply. Senior bonuses are often partly deferred or paid in shares.
Do you need a degree to become an investment banker?
Most investment bankers join through graduate programmes, and banks often prefer candidates from top universities. Your subject matters less than showing strong numerical and analytical skills. Some banks also offer degree apprenticeships for school leavers, combining paid work with a degree.
How many hours do investment bankers work?
Hours are long, especially at analyst level. TonyKnows career data notes that 70 to 100 hours a week is common for junior bankers, with late nights and weekend work when deals are live. Hours usually ease a little with seniority, but the job stays demanding.
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