Banking Salaries at Tier 1 Banks, What Nobody Tells You

Nobody in banking tells you what people actually earn. Job adverts say "competitive salary." Recruiters give you a range wide enough to drive a bus through.

So here is what I know, from having worked inside these institutions across three countries. I want to be clear upfront that these are my own observations and perspective, informed by experience and publicly available data. They are a guide, not a guarantee. Pay varies significantly by bank, year, team, and individual.

First, understand what actually shapes your pay

Before any numbers, two things shape your salary more than your performance, your title, or even which specific bank you work for.

Which type of bank you work for. From what I have seen, investment banks tend to pay more than commercial or retail banks. The reason, as I understand it, is fairly simple. A single investment banking deal can generate tens of millions in fees, and that fee income funds larger bonus pools. Commercial and retail banks earn more steadily from loans and mortgages. Reliable income, but typically thinner margins. The pay tends to reflect that difference.

Where your role sits inside the bank. Erm, this one catches a lot of people out. Even within the same institution, not everyone earns the same. Front office roles bring money in directly. Investment bankers, relationship managers, coverage teams. Their pay tends to be tied more closely to revenue. Middle and back office roles covering operations, risk, compliance, and support are essential work, but with no direct revenue line attached, the ceiling tends to be different.

United Kingdom, London

London, in my experience, is one of the two biggest banking cities in the world. The figures below are my best sense of what people at Tier 1 banks earn at different levels, based on what I know. These are approximate and will vary.

Investment Banking

Front office vs operations, roughly

Canada, Toronto

Canada pays less than London or New York on paper, though the cost of living is generally lower too, so the gap in real life feels smaller than it first appears.

Investment Banking

United States, New York

New York is, from everything I have seen and read, the highest-paying banking market in the world.

Investment Banking

The bonus, and what most people misunderstand about it

A bonus is not simply a reward for working hard. From what I have seen, it tends to be the result of several things happening in your favour at the same time.

The bank needs to have had a good year. The total pool available is set by profitability. Bad year, small pot. Some years certain divisions get very little.

Your specific division needs its own strong year. Each part of the bank gets its own allocation. A strong year in your group can protect you even if the wider bank struggled.

You need to land in the right performance tier. People get ranked within their team. The top tier typically earns considerably more than the middle tier at the same level. Two people with the same title can walk away with very different numbers based on this alone.

Your contribution needs to be visible. In front-office roles, the bank can often trace income back to you or your team. In support roles that link is less direct. That difference tends to affect your bonus ceiling.

One more thing worth knowing: at more senior levels, a portion of the bonus often comes as company shares that cannot be sold for several years. It is a standard retention mechanism at many of the big banks.

A note for anyone reading this from Nigeria

The numbers in this article will look large compared to what Nigerian Tier 1 banks pay. I know because that is where I started. But please do not make a decision based on the headline figure alone.

After tax and rent in London, a £65K salary leaves considerably less than most people expect. The real case for moving, in my view, is not what you earn in year one. It is what becomes possible in year five, seven, and ten, when salary growth and bonuses compound into something that is simply not available at equivalent seniority back home.

The process of moving is real work. But for the right person with a clear plan, the long-term picture, from what I have experienced, is compelling.

Written by

Gani Aderibigbe

Senior Banking Professional in Capital Markets. Former Senior PM at JPMorgan Chase London. 10 years across banking in Nigeria, the UK, and Canada. Banking Decoded is the guide I wish had existed when I started.

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