The banking industry is one of the most powerful and influential sectors in the world economy.
Banks provide essential financial services to individuals, businesses, governments, and other institutions.
They also play a key role in facilitating international trade, investment, and cooperation.
But which banks are the biggest and richest in the world?
And how do they compare to each other in terms of assets, revenues, profits, and market capitalization?
In this article, we will explore the top 10 banks in the world based on various criteria and sources.
We will also look at some of the trends and challenges that these banks face in the current and future environment.
The Top 10 Banks in the World by Total Assets
One of the most common ways to measure the size of a bank is by its total assets.
This is the sum of all the resources that a bank owns or controls, such as loans, securities, cash, property, and equipment.
Total assets indicate how much a bank can lend, invest, or use for its operations.
According to the S&P Global Market Intelligence report of April 2023, based on data from 2022, the top 10 banks in the world by total assets are:
1. Industrial and Commercial Bank of China Limited (ICBC): $5,742.86 billion
2. China Construction Bank Corporation (CCB): $5,016.81 billion
3. Agricultural Bank of China Limited (ABC): $4,919.03 billion
4. Bank of China Limited (BOC): $4,192.12 billion
5. JPMorgan Chase & Co. (JPM): $3,898.33 billion
6. Bank of America Corporation (BAC): $3,051.38 billion
7. Mitsubishi UFJ Financial Group, Inc. (MUFG): $2,967.91 billion
8. HSBC Holdings plc (HSBC): $2,864.59 billion
9. BNP Paribas SA (BNP): $2,849.61 billion
10. Citigroup Inc. (C): $2,765.66 billion
As we can see from this list, four of the top five banks are Chinese state-owned enterprises that dominate the domestic market and have expanded their presence abroad.
The only non-Chinese bank in the top five is JPMorgan Chase, which is the largest bank in the United States and one of the leading global financial institutions.
The rest of the top 10 banks are mostly from Europe and Japan, with Bank of America and Citigroup being the other two American banks on the list.
The Top 10 Banks in the World by Market Capitalization
Another way to measure the size of a bank is by its market capitalization.
This is the total value of all the shares of a bank that are traded on the stock market.
Market capitalization reflects how much investors are willing to pay for a bank’s equity, which depends on factors such as earnings, growth prospects, risk profile, and reputation.
Market capitalization can change daily depending on the fluctuations of share prices and exchange rates.
According to Forbes.com’s ranking as of August 2023, based on an analysis of the bank’s operations, financial performance, and overall impact on the global economy¹, the top 10 banks in the world by market capitalization are:
1. JPMorgan Chase & Co.: $419.25 billion
2. Bank of America Corporation: $231.52 billion
3. Industrial and Commercial Bank of China Limited: $194.56 billion
4. Agricultural Bank of China Limited: $160.68 billion
5. HDFC Bank Limited: $157.91 billion
6. Wells Fargo & Company: $155.87 billion
7. HSBC Holdings plc: $148.90 billion
8. Morgan Stanley: $140.83 billion
9. China Construction Bank Corporation: $139.82 billion
10. Bank of China Limited: $136.81 billion
From this list, we can see that JPMorgan Chase is not only the largest bank in the world by total assets but also by market capitalization.
It is followed by Bank of America, which is also the second-largest bank in the US by both criteria.
The next three banks are Chinese state-owned enterprises that rank among the top four banks in the world by total assets but have lower market values than their American counterparts.
This may reflect differences in profitability, efficiency, governance, regulation, and investor confidence between the two countries.
The sixth-largest bank by market capitalization is HDFC Bank, which is India’s largest private sector bank and one of the fastest-growing banks in the world.
Wells Fargo, HSBC, Morgan Stanley, and China Construction Bank complete the top 10 list.
The Top 10 Banks in the World by Revenue
A third way to measure the size of a bank is by its revenue.
This is the amount of money that a bank earns from its various activities, such as interest, fees, commissions, trading, and investments. Revenue indicates how much a bank can generate from its assets, customers, and markets.
Revenue can also be affected by factors such as economic conditions, competition, regulation, and innovation.
According to YCharts.com’s data as of December 16, 2022, based on the 12-month trailing revenue of the banks that are publicly traded in the US or Canada, either directly or through ADRs, the top 10 banks in the world by revenue are:
1. Industrial and Commercial Bank of China Limited: $143.32 billion
2. China Construction Bank Corporation: $126.79 billion
3. JPMorgan Chase & Co.: $123.42 billion
4. Agricultural Bank of China Limited: $121.66 billion
5. Bank of China Limited: $113.10 billion
6. Bank of America Corporation: $91.24 billion
7. Wells Fargo & Company: $85.06 billion
8. Citigroup Inc.: $74.29 billion
9. HSBC Holdings plc: $56.10 billion
10. BNP Paribas SA: $49.47 billion
This list shows that the top five banks by revenue are the same as the top five banks by total assets, with ICBC leading the pack by a wide margin.
The next five banks are also among the top 10 banks by total assets, except for BNP Paribas, which replaces MUFG on this list.
The ranking by revenue reflects the scale and diversity of the banks’ operations, as well as their ability to generate income from various sources and markets.
The Top 10 Banks in the World by Profit
A fourth way to measure the size of a bank is by its profit.
This is the amount of money that a bank earns after deducting all its expenses, such as interest, taxes, salaries, and provisions.
Profit indicates how much a bank can retain and reinvest from its revenue, which affects its growth potential and shareholder value.
Profit can also be influenced by factors such as risk management, cost control, efficiency, and innovation.
1. Industrial and Commercial Bank of China Limited: $55.34 billion
2. China Construction Bank Corporation: $48.49 billion
3. JPMorgan Chase & Co.: $37.07 billion
4. Agricultural Bank of China Limited: $36.98 billion
5. Bank of China Limited: $32.59 billion
6. Bank of America Corporation: $27.43 billion
7. Wells Fargo & Company: $19.55 billion
8. HDFC Bank Limited: $15.14 billion
9. Citigroup Inc.: $14.81 billion
10. HSBC Holdings plc: $13.35 billion
This list shows that the top five banks by profit are also the same as the top five banks by total assets and revenue, with ICBC again leading the pack by a wide margin.
The next five banks are also among the top 10 banks by total assets and revenue, except for HDFC Bank, which replaces BNP Paribas on this list.
The ranking by profit reflects the profitability and efficiency of the banks’ operations, as well as their ability to manage costs and risks
Conclusion
In this article, we have explored the top 10 banks in the world based on various criteria and sources.
We have seen that there is no definitive answer to the question of which bank is the biggest or richest in the world, as different measures can yield different results depending on what aspects of a bank’s performance and value are considered.
However, some general trends and patterns can be observed from the data presented above:
– The Chinese state-owned enterprises dominate the global banking industry in terms of total assets, revenue, and profit.
– JPMorgan Chase is the largest and most valuable bank in the US and one of the leading global financial institutions.
– HDFC Bank is India’s largest private sector bank and one of the fastest-growing banks in the world.
– European and Japanese banks lag behind their American and Chinese counterparts in terms of size and value.
These trends and patterns may change in the future as new challenges and opportunities arise for the banking industry in a dynamic and competitive environment.
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