Wednesday, July 17, 2013

The Top 20 Global Banks are Increasingly Chinese, not American

Recently Fortune Magazine US released a list of the top 500 corporations. Within this list are the top 20 global banks based on revenue. Overall China claims four of them including ICBC (Industrial & Commercial Bank of China) the largest of them all, topping the global list with US$133.6BN in revenue. This makes ICBC more than twice the size of Deutsche Bank.
In fact four of the top ten banks on the list are Chinese, and only one is a Japanese bank - How the world has changed in just five years after Lehman Brothers collapsed. It is indeed a "brave new world", as James Bond 007 said in Skyfall, and I would tend to agree. Was it so long ago that Japan dominated the global-landscape of bank names with domestic firms virtually unknown in the global area? It is hard to now believe that in 1993 Dai-ichi Kangyo Bank was the largest bank in the world (ranked by assets), although few outside of Japan would have recognized the name. 
The players have indeed changed with only four of the top twenty on the list now being US firms. How can that be? Only four US banks is equal to China. Is that possible in 2013? What will the same list be like in another five years? Some financial analysts we deal with focus on financial sectors and some clients claim there is a ticking "time bomb of Chinese defaulting debt", but only time will tell. 
Others claim that Japan's bank Mitsubishi UFJ Financial Group, may fall from the list when the JGB debt explodes. Kyle Bass, a well known and vocal hedge fund managers says "this is in the cards", again time will tell. Some financial analysts we deal with are laser focused on financial sectors and know which case may be true and what may be a false skew. It is always about knowing which professionals have the best insight. At Experis Finance we know the right professionals and due to our global network we sharpen that edge every day.
Source - Fortune Magazine
From Here is the City
Fortune magazine has just released its Global 500 list of the world's largest corporations (as per 2012 revenues).
He's the top 20 banks (Global 500 ranking in brackets):
1(29). Industrial & Commercial Bank of China - $133.6bn revenues
2(41). BNP Paribas - $123.0bn
3(50). China Construction Bank - $113.3bn
4(55). JPMorgan Chase - $108.1bn
5(58). Banco Santander - $106.0bn
6(60). HSBC - $105.2bn
7(61). Societe Generale - $105.0bn
8(64). Agricultural Bank of China - $103.4bn
9(66). Bank of America - $100.0bn
10(70). Bank of China - $98.4bn
11(73). Credit Agricole - $95.1bn
12(78). Wells Fargo - $91.2bn
13(79). Citigroup - $90.7bn
14(85). Lloyds Banking Group - $86.8bn
15(116) Banco Do Brasil - $72.0bn
16(130). Deutsche Bank - $67.4bn
17(163). Mitsubishi UFJ Financial Group - $57.3bn
18(168). Banco Bradesco - $55.9bn
19(177). Barclays - $54.6bn
20(180). Landesbank Baden-Wurttemberg - $53.8bn
Source - Fortune magazine

For more Buy-Side and Sell-Side roles in Asia-Pacific, contact our TMJ Partners Japan & Asia Finance team.

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