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The utter brutality of the hours is unquestionably one of the most terrifying aspects of working in investment banking. The lucrative nature of banking, even for entry-level positions, makes it easy to become drawn to the field, but eventually you’ll have to face the harsh truth: investment banking is labor-intensive.
There’s no avoiding the fact that closing any deal requires an absurdly high level of force and energy. Even the most basic financial transactions involve a lot of moving parts. Because of this, mergers and acquisitions are labor-intensive to execute and usually involve a great deal of analysis.
However, I believe that investment banking hours are frequently overstated.
Personally, I don’t believe that anyone regularly averages 90 or even 100 hours per month. The human soul has a limit, and it breaks far before that.
I discover that a large number of bankers, primarily post-MBA associates and college students,
It’s not always deliberate; people tend to remember the dark nights, and the recollection of these nights frequently makes us think that we’re working longer and harder than we actually are.
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I’ll highlight observations from my personal banking experience as well as the experiences of numerous colleagues in this post.
The world of investment banking is renowned for its demanding work hours, often exceeding the traditional 9-to-5 schedule. This comprehensive guide delves into the intricacies of investment banking hours, providing insights into the typical workload factors influencing the hours, and strategies for coping with the demanding schedule.
How Many Hours Do Investment Bankers Actually Work?
Investment banking is a high-intensity career that requires long hours typically ranging from 60 to 80 hours per week. However the actual number of hours worked can vary significantly depending on factors such as the market, employer, and seniority level.
Factors Influencing Investment Banking Hours
Several factors contribute to the long hours in investment banking:
- Market Demands: The fast-paced nature of the financial markets necessitates constant monitoring and responsiveness, often leading to extended workdays and weekends.
- Client Expectations: Investment bankers cater to the needs of their clients, who may require immediate attention or have tight deadlines, resulting in extended hours to meet their demands.
- Internal Culture: The competitive and demanding culture within investment banking firms often encourages long hours as a measure of dedication and commitment.
- Seniority Level: Junior bankers, such as analysts, tend to work longer hours than senior bankers, who have more autonomy and responsibility over projects.
How Are Investment Banking Hours Spent?
While the hours may seem excessive, not every minute is spent on active work. Junior bankers often spend a significant portion of their time waiting for feedback from senior colleagues or preparing materials for meetings and presentations.
Typical Daily Tasks for Investment Bankers:
- Creating financial models in Excel
- Preparing PowerPoint presentations for client meetings
- Making corrections or changes to models and presentations
- Researching potential clients
Strategies for Coping with Long Hours
Coping with the demanding schedule of investment banking requires effective strategies:
- Maintaining a Healthy Lifestyle: Prioritizing a healthy diet, regular exercise, and sufficient sleep is crucial for sustaining energy levels and mental well-being.
- Setting Boundaries: Establishing clear boundaries between work and personal life is essential for preventing burnout and maintaining a healthy work-life balance.
- Utilizing Downtime Effectively: Making the most of downtime by engaging in hobbies, spending time with loved ones, or pursuing personal interests can provide much-needed respite from the demanding work environment.
- Seeking Support: Seeking support from colleagues, mentors, or mental health professionals can provide valuable guidance and coping mechanisms for managing the challenges of long hours.
Trade-offs for Long Hours
While the long hours in investment banking can be demanding, they often come with significant trade-offs:
- High Compensation: Investment banking offers lucrative salaries and bonuses, making the long hours financially rewarding.
- Rapid Learning and Career Advancement: The intense workload provides opportunities for rapid learning and career progression, opening doors to various career paths within finance.
- Development of Valuable Skills: The demanding environment fosters the development of essential skills such as analytical thinking, problem-solving, and communication, which are highly transferable to other industries.
Investment banking is a demanding career that requires long hours and dedication. However, the trade-offs for these long hours can be substantial, offering high compensation, rapid career advancement, and valuable skill development. By understanding the factors influencing investment banking hours and implementing effective coping strategies, individuals can navigate the challenges of this demanding industry while reaping the potential rewards.
Distribution of Hours Worked
For two years, I worked as an investment banking analyst at a prestigious New York boutique. I tried my best to record the number of hours I worked at the time, using receipts from Seamless and taxis as a guide. This is a general overview of my experience working in investment banking.
I believe that the average number of hours I worked each week was roughly 70. I spent 60 to 80 hours a week in that range for the most part.
This distribution, in my opinion, probably applies to the majority of analysts and associates in the majority of bulge brackets and upscale boutiques.
What 60 Hours per Week Looks Like
While 60 hours is challenging, most people can still manage it.
You must work 60 hours a week in many non-banking professions (consulting, scrappy startups, some accounting firms) Actually, the majority of those in private equity and hedge funds most likely put in 60 hours a week. The point remains true even though the buy side typically entails a far more taxing 60 hours.
After sixty hours, you arrive home between eight and ten o’clock (depending on when you started) and have some alone time before you have to go to bed. Considering that you would likely have to prepare and consume dinner if you held a regular job, working a 9–5 job doesn’t mean you lose a lot of free time.
It’s likely that you will lose one to two hours of uninterrupted free time each day, and you will need to work a little bit on the weekends.
Even with 60 hours a week, you can still enjoy a wonderful Friday night free from work. You can leave at five or six o’clock and not use your laptop again until Sunday. You can take one full day off after 60 hours worked, with the usual requirement being very light work on the other day. Though you might not be able to decide when that is, this is generally manageable.
The schedule shows that most banking employees report to work at around ten in the morning. This is the unnoticed benefit of banking—sometimes the days start incredibly late. People sometimes don’t know when you stopped working the night before, which contributes to this in part. You typically start way later than other professions. Some banking groups, I’ve observed, have people walk in at noon or eleven a.m.
How Much do Investment Bankers Really Work?
FAQ
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How many hours a week does a banker work?
But not every week is 100 hours. A junior banker working for a big five Canadian bank tracked his working hours during his first year as an investment banking division (IBD) analyst, and posted them to Reddit. Over a 60-week period (pre-pandemic), he worked one 105 hour week and plenty of 80 hour weeks, but the average was just 69 hours.
How many hours do investment bankers work?
Investment banking hours are notoriously long — a job in investment banking can involve working over 100 hours per week. However, investment bankers do not always work that many hours, and not every minute of every day is spent agonizing over Excel spreadsheets. In this guide, we’ll go over: How Many Hours Do Investment Bankers Actually Work?
How many hours a week do investment banking analysts work?
Investment banking analysts may work up to 100 hours per week at some firms. Investment banks help companies and governments raise capital by issuing stock or borrowing money. They also act as advisers and go-betweens on mergers and acquisitions. The capital markets are a fast-paced, high-stakes, and highly regulated environment.
Why do investment bankers work so long?
The long hours are not forever. As investment bankers gain seniority, rising from analyst to associate to vice president, the hours worked per week go down. While higher-ranked bankers have better hours, they also have more responsibility and accountability for the deals they are working on. The hours serve a purpose: learning.