This Post is part of the Careers in Australian Finance series.
What is Financial Analysis?
Financial Analysis is a broad-based section of the Finance Industry. Financial Analyst roles are often focussed on Credit Research into Corporate and Institutional Clients of Banks, and are responsible for assessing the credit worthiness of these clients. Rating Agencies also conduct similar work, however their mandate is often to support public debt issuances (Bonds, Medium Term Notes etc). These roles involve working with clients’ Financial Models and reviewing Financial Statements, and generally require a good understanding of Credit Analysis and Debt Capacity Analysis.
Financial Analyst roles generally pay quite well out of university, slightly higher than Accounting Advisory Services roles depending on the firm you go to, but again not quite that of Corporate Finance. Bonuses exist and can be quite good dependent on performance, however people in these roles will often tend to move into other career streams after 5-10 years due to there being limited upside to earnings in this field compared to others, with a general cap on base salaries of about 250K in Australia for very experienced top performing candidates (15 years +). In the Big 4 Banks, these roles generally work alongside Relationship Managers and Executives, and therefore Financial Analysts often transition into these roles down the track.
What do I need to do to get a job in Financial Analysis?
These roles are generally concentrated in the Commercial Banks within their Corporate and Institutional Banking businesses, or in the Rating Agencies. The Commercial Banks don’t generally require a Finance or Accounting degree in order to accept people into these Graduate roles, however you need to be able to demonstrate your desire to work in these roles. The Rating Agencies are more stringent in their requirements generally. In terms of grades, a Credit Average is probably good enough for these roles in general, and due to the relatively large number of these roles compared to others there is often less competition (not that they are easy to get, there is still lots of competition, just not as much as the others mentioned in this blog in a relative sense).
Who is hiring in Financial Analysis in Australia?
The Big 4 Banks: NAB, ANZ, CBA, WBC (see links in our Corporate Finance & Advisory article);
Moody’s (although not a prolific hirer): https://www.moodys.jobs/psp/hrrec/EMPLOYEE/HRMS/c/ROLE_APPLICANT.ER_APPLICANT_HOME.GBL?NAVSTACK=Clear