International banks continue to grow their assets as the world economy
expands. If no major economy falters, the expansion may continue. While there
is some debate whether China’s economy is bigger than the United States’, there
is no questioning which nation is home to the largest banks. The power in
banking is unquestionably shifting eastward to China. Out of the top 10 largest
banks by assets, only two are American banks. They rank number six and nine.
The leading banks by far are Chinese banks. China holds the top four slots in
the top 10. Japan and France are also represented, and England has the No. 5
bank. In short, only five countries are represented on the list of top 10 banks
in the world. This concentration of financial activity does not necessarily
represent a concentration of wealth. All of the banks on our top 10 list do international business, so wealth from
countries with smaller banks is flowing through the top 10 players for 2017.
Below are the lists of the world’s banks from largest to smallest and
indicated the dollar value of their assets. All figures are current as of April
23, 2017.
1. INDUSTRIAL & COMMERCIAL
BANK OF CHINA
This is the largest bank in the world when measured by assets. It has
3.04 € trillion in total assets. The bank’s revenues come in at 113.11 €
billion. Measured by revenues, this is the fourth largest bank in the world.
Though this is a commercial bank, it is state-owned. The bank provides loans,
financing for businesses, credit cards, as well as money management for
high-net-worth individuals and companies. The bank also offers money market
vehicles, investing opportunities and exchange and transfer services. A bank
spokesman says that President Trump’s insistence that U.S. companies stop
manufacturing in Mexico could be an opportunity for the Chinese bank. It plans
to invest in Mexico as U.S. firms pull out.
2. CHINA CONSTRUCTION BANK CORP.
This is the second Chinese bank on our top 10 list. It offers corporate
banking, which deals with credit, company e-banking, credit lines and
commercial loans. The personal banking segment offers personal loans, credit
cards, deposits and wealth management for individual investors. The bank also
operates a Treasury sector that deals with money markets, debt securities, and
currencies. The China Construction Bank has assets of 2.47 € trillion. On March
29, 2017, the bank announced that its profits have risen by 2.8% during the
fourth quarter. The bank expects its profit margins to shrink in 2017, and
plans to improve pricing on loans.
3. AGRICULTURAL BANK OF CHINA
This Beijing bank has branches across China, plus London, Tokyo, New
York and Sydney, Australia. Not only is it the third-largest bank on our list,
but it is also one of the 10 largest companies in the world. Agricultural Bank
of China is state-owned. The bank deals with small farmers and large
agricultural wholesale companies. It also works with non-agricultural
companies. Its largest growth segment is mid-sized companies. The bank has
assets of 2.37 € trillion. The bank reported a fourth-quarter increase in
profits of 1.8%, even though its profit margins have been shrinking. Profits in
U.S. dollars was $ 22.4 € billion.
4. BANK OF CHINA
The Bank of China offers investment banking, insurance and investing
services. It also provides personal loans, credit card services, debit cards,
mortgages, asset and liability management and insurance. Assets total 2.21 €
trillion. In April of 2017, the bank sold bonds denominated in four currencies.
The sale took place on one day and resulted in 2.52 € billion in capital for
the bank. In its latest profit report, the Bank of China reported a 3.7% drop.
5. HSBC HOLDINGS (HSBC)
This is a bank based in England. The bank has offices in 80 countries,
and has 1,800 locations in the U.K. It provides private banking and consumer
finance, along with corporate banking and investment services. HSBC has 2.16 €
trillion in assets.
6. JPMORGAN CHASE & CO.
(JPM)
This is the first bank on the list that is based in the United States.
It is based in New York, but it is a multinational bank. Though it is ranked
sixth-largest in the world, it is the largest bank in the United States. It is
involved in investment services, asset management, wealth management and
securities. Assets total 2.06 € trillion. As of April 23, 2017, Shepherd
Financial Partners has purchased 51,950 shares of JP Morgan stock worth
2,624,704.8 €. The analyst consensus for a one-year target price is 76.65 € per
share. The stock currently trades at 70.92 €.
7. BNP PARIBAS
This French bank has assets of 2.01 € trillion. It has offices in 75
countries, including the United States. This bank was ranked second among banks
in the euro zone in 2016. The analyst consensus on the stock of BNP Paribas is
a “buy.” The bank is merging its research teams and expects to cut some analyst
jobs in 2017. The company announced on April 5, 2017 that it had sold its
shares in the Dakota Pipeline. The sale was worth 100.69 € million.
8. MITSUBISHI UFJ FINANCIAL
GROUP
This is a Japanese bank that offers consumer banking, as well as
business and private banking. This is also an investment bank. It offers asset
management and real state banking. Mitsubishi UFJ Financial Group has assets
worth 2.06 € trillion. Assets for the bank total 2,434.51 € billion. State
Street Corp. increased its holdings in this bank by 18.6%. This is the second
largest public company in Japan. The stock trades at 5.81 € as of this writing,
Analysts have placed a target price of 6.28 € per share. It pays a dividend of
2.63%.
9. BANK OF AMERICA (BAC)
Bank of America is a U.S. bank that offers services for personal
banking, small businesses, mid-sized businesses, and large corporations. It
offers investment services in addition to its deposit and checking accounts.
The bank has nearly 5,000 retail outlets, with assets topping 1.8 € trillion.
The stock currently trades at 19.06 € and has a one-year target price of 21.51
€. It pays a dividend of 1.32%. The bank’s revenues have dropped slightly over
the past three years. On April 18, 2017, the bank reported a 46% rise in
earnings per share. Bank of America has begun pursuing small businesses and is
making more loan money available to them. Its small business program includes
putting staff in We Work offices where small businesses operate.
10. CREDIT AGRICOLE GROUP
This is the second French bank on the list. It has assets of 1.6 €
trillion. This bank has a history of working with farmers. It is part of a
network of 39 French banks. The bank raised its holding in the DEO group by
87.6% as of April 20, 2017. It also invested in Coca-Cola (KO), Exxon Mobile
(XOM), and Abercrombie and Fitch.
In February of 2017, the company reported it had a 67% drop in its
fourth-quarter profits due to mortgage refinancing by its customers. However,
revenues rose by 7%. Forbes ranks the company as one of the world’s top 20 most
sustainable companies.
THE SAFEST BANKS IN AFRICA 2017
South African banks dominate the list, taking the top six positions.
The full report includes the following rankings: World’s 50 Safest Banks,
World’s 50 Safest Commercial Banks, Safest Banks by Country, 50 Safest Banks in
Emerging Markets, Safest Islamic Financial Institutions in the GCC, and Safest
Banks by Region (Africa, Asia, Australasia, Central & Eastern Europe, Latin
America, Middle East, North America and Western Europe).
“Africa can be a difficult place to do business, so corporates need
solid support from reliable financial partners. Our ratings provide valuable
insight for global companies seeking to gain a toehold, or to build their
strengths, in this region,” Banks were selected through an evaluation of
long-term foreign currency ratings—from Moody’s, Standard & Poor’s and
Fitch—and total assets of the 500 largest banks worldwide.
List of the Safest Banks in Africa 2017
RANK BANK NAME COUNTRY
1 Standard Bank Group*
South Africa
2 FirstRand Bank South Africa
3 Absa Bank South Africa
4 Nedbank South Africa
5 Investec Bank South Africa
6 Barclays Africa
Group South Africa
7 Attijariwafa Bank Morocco
8 Banque Centrale
Populaire Morocco
9 Banque Marocaine du
Commerce Exterieur (BMCE) Morocco
10 Zenith Bank Nigeria