In wake of Silicon Valley Bank's collapse, WP runs down the largest banks in the world by market cap
The dubious accolade of the largest American bank failure since 2008 now belongs to Silicon Valley Bank (SVB).
In 1983, SVB was founded with the intention of offering financial services to the region's innovative tech firms. According to regulations, SVB had $175 billion in deposits as well as $209 billion in assets as of December 31, 2022.
At the time, SVB claimed that "44% of U.S. venture-backed technology and healthcare IPOs bank with SVB" on their website. It was one of the top 20 banks in the nation and had larger deposit levels than the average bank, with almost 90% of its customers having balances of above $250,000.
But while the market contagion and general panic around its collapse suggested otherwise, SVB is a relative minnow compared to the world’s biggest banks.
Here, we run down the largest banks in the world by total assets.
Market cap figures as of March 27, 2023.
1. JPMorgan Chase & Co. (JPM)
Market cap: $374.15 billion
JPMorgan Chase & Co. is one of the largest and most successful banks in the world. One key factor in the bank's success is its diversification. JPMorgan Chase & Co. operates in a range of different areas, including consumer banking, investment banking, and commercial banking, giving it a broad customer base and a variety of revenue streams.
Another factor contributing to the bank's success is its commitment to innovation and technology. JPMorgan Chase & Co. has invested heavily in technology, including blockchain and artificial intelligence, to improve its operations and provide better services to customers.
2. Bank of America Corporation [BAC]:
Market cap: $224.33 billion
Bank of America (BoA) is the second-largest bank in the United States, with total assets of $3.238 billion. The bank provides a wide range of financial services to individuals, businesses, and governments both in the US and around the world. BoA's headquarters are in Charlotte, North Carolina.
One reason for the bank's success is its size and scale. With a large and diversified portfolio of assets, BoA can serve a wide range of customers and weather fluctuations in the financial markets. In addition, the bank has a strong focus on customer service, with a reputation for providing high-quality service to its customers.
BoA has also been in the news for its commitment to environmental, social, and governance (ESG) issues. The bank has set ambitious targets for reducing its carbon emissions and has pledged to invest in renewable energy and sustainable infrastructure.
3. Industrial and Commercial Bank of China (ICBC)
Market cap: $221.5 billion
ICBC is one of the largest banks in the world, and its success can be attributed to several factors. Firstly, it is the dominant player in China's banking industry. This gives the bank a massive customer base and a significant advantage over its competitors.
Secondly, ICBC has a vast network of branches and ATMs across China, making it easily accessible to customers in both urban and rural areas. This has helped the bank to reach many customers and provide them with a range of financial products and services.
Thirdly, ICBC has been successful in expanding its business beyond China's borders. It has a presence in more than 40 countries and regions, including major financial centres such as New York, London, and Hong Kong. This has allowed the bank to tap into new markets and diversify its revenue streams.
4. China Construction Bank Corp [CICHY]:
Market cap: $161.18 billion
China Construction Bank (CCB) is the second-largest bank in China by size and one of the largest banks in the world, with total assets of $5.045 billion. The bank was founded in 1954 as a government exchange bank and later transformed into a commercial bank, with a focus on serving the needs of Chinese businesses and consumers.
CCB operates more than 14,000 branches around the world, providing a wide range of financial services to customers. The bank also has more than 349,671 employees. It has been expanding its business beyond China in recent years, with a focus on Southeast Asia and other emerging markets.
5. Agricultural Bank of China Ltd. [ACGBY]:
Market cap: $153 billion
The Agricultural Bank of China (ABoC) was founded in 1951 to support collective farms and workers. Since then, it has become one of the largest and most successful banks in the world, with total assets of $4.868 billion. The bank is headquartered in Beijing and has nearly 24,000 representatives in China and around the world.
One reason for the Agricultural Bank of China's success is its deep ties to the Chinese government and the country's financial and commercial sectors. The bank is one of China's "big four" state-owned banks, and it plays a key role in financing the country's agricultural and rural development. In addition, ABoC has expanded its services to include a wide range of financial products and services, including corporate and investment banking, wealth management, and insurance.
6. Morgan Stanley
Market cap: $142.49 billion
Morgan Stanley is one of the largest investment banks in the world, with a presence in over 40 countries. The bank's success can be attributed to its expertise in investment banking, wealth management, and asset management. The firm's reputation for innovation and its ability to adapt to changing market conditions have also contributed to its growth and success over the years.
Morgan Stanley has been in the news recently for its strong financial performance, with the bank reporting record profits in 2021. The firm's focus on digital transformation has also been a major factor in its success, with the bank investing heavily in technology and automation to improve efficiency and streamline operations.
In addition, Morgan Stanley has been actively involved in a number of high-profile mergers and acquisitions, including its acquisition of E*TRADE in 2020, which has helped the bank expand its wealth management offerings and further solidify its position as a leader in the financial services industry.
7. Wells Fargo & Co. [WFC]
Market cap: $140.35 billion
Country: United States
Wells Fargo & Co. is one of the largest and most successful banks in the United States. Its success can be attributed to its extensive network of branches and subsidiaries, which allows it to reach many customers across the country.
The bank, according to Fortune magazine, was the top-ranked bank in France with a 28% market share, rated second globally in terms of sales and earnings, placed 15th overall in Forbes' rankings.
The bank has a diversified business model, with operations in retail banking, commercial banking, and wealth management. It is also a leader in mortgage lending in the US.
Market cap: 135.6 billion
HSBC has self-styled itself as the “global bank” and boasts a strong international presence. The bank's success can be attributed to its long history of serving customers in diverse markets.
In particular, its Asia operations have been hugely successful but Hong Kong investors recently forced HSBC into a shareholder vote on its structure, including a potential spin-off of its Asian arm. Minority shareholder Ken Lui said the bank’s Asian activities were “effectively subsidising the western businesses, to the detriment of HSBC’s global shareholders” and said the split would be the best way forward.
9. Bank of China Ltd. [BACHF]
Market cap: $134 billion
Bank of China is one of the oldest and largest banks in China, with a history dating back to 1912. It is a major state-owned commercial bank and one of the "big four" banks in China. The bank has a wide network of branches and subsidiaries across the world, with a presence in 50 countries and regions.
The bank's success can be attributed to its focus on introducing new technologies and products to the Chinese market, including mobile banking and digital payment services. Bank of China has also been actively expanding its operations globally, with a focus on emerging markets.
10. Royal Bank of Canada
Market cap: $129 billion
The Royal Bank of Canada (RBC) is one of Canada's largest and most successful banks (one of the country’s Big Six), with a strong presence in Canada, the United States, and around the world. Since launching its first native mobile app in 2016, the bank has continually sought to improve its digital offerings and enhance its customers' experience. The bank has earned recognition for its innovative approach to banking.
On November 29, 2022, RBC announced it will acquire HSBC Canada, subject to regulatory approvals. The move was described as adding to RBC’s impressive scale, adding in HSBC Canada’s strong expertise in liquidity management, trade finance, international cash management, and wealth and personal banking.