In this piece, we are going to shed light on the 20 Largest Banks in The World by Market Cap. If you want to skip our detailed analysis of the banking sector, you can go directly to 5 Largest Banks in The World by Market Cap.
The global banking industry is on the rise, with a bright future ahead. Despite economic challenges like the Russia-Ukraine conflict, the industry is set at $614.62 billion in 2023 and is expected to climb to a whopping $1,231.49 billion market size by 2027. This growth is driven by the increasing adoption of digital banking, as more customers crave personalized and flexible services. Companies are also embracing cloud-native architecture to enhance their offerings. Oracle, for example, is leading the way with innovative cloud-native banking services. All in all, the industry is evolving to meet the changing needs of customers and is poised for continuous growth.
Looking ahead to 2024, the global banking industry is in for some twists and turns. A slowdown in the global economy, along with a mix of economic uncertainties, will keep banks on their toes. While efforts to tackle inflation are showing progress in some places, other issues like supply chain disruptions, shifting trade dynamics, and geopolitical tensions are complicating matters. The International Monetary Fund (IMF) projects cautious global economic growth of around 3.0% in 2024, with advanced economies like the US, Euro area, Japan, UK, and Canada expected to see modest growth.
On the bright side, many emerging economies, fueled by strong consumer demand and favorable trade balances, are likely to outpace the pack. India, in particular, is poised for robust growth at 6.3%. However, China is facing some challenges with sluggish consumer demand and a shaky property market, which could have ripple effects globally. Efforts to boost confidence in China’s economy could impact other Asian countries as well. Inflation is also a hot topic, with expectations of a decrease to 5.2% in 2024. Central banks will be busy adjusting their monetary policies to navigate these choppy waters.
The US Federal Reserve might tweak interest rates, while the European Central Bank (ECB), Bank of England, and Bank of Canada are also expected to make moves in response to changing economic conditions. Overall, central banks are gearing up to manage global money supply more closely as we head towards 2024. It’s a balancing act to keep economies afloat amidst a sea of challenges and uncertainties.
Amidst this market snapshot, it’s essential to also look at few players in the market. Namely, let’s discuss Morgan Stanley (NYSE:MS) and Goldman Sachs Group, Inc. (NYSE:GS).
Morgan Stanley (NYSE:MS)
Morgan Stanley (NYSE:MS) provides investment banking financial services, catering to diverse financial planning needs of the clients. Also, clients can access various discretionary options for investment management, benefitting from Morgan Stanley’s global resources and expertise.
Morgan Stanley had revenue of $54.00 billion in the twelve months ending September 30, 2023, down -2.61% year-over-year. Revenue in the quarter ending September 30, 2023 was $13.27 billion with 2.21% year-over-year growth. In the year 2022, Morgan Stanley had annual revenue of $53.67 billion, a decrease of -10.19%.
Goldman Sachs Group, Inc. (NYSE:GS)
Goldman Sachs’ (NYSE: GS) private wealth advisors offer clients exceptional resources, access, and guidance to optimize their wealth and influence. Each advisor tailors Goldman Sachs’ offerings to align with the client’s goals and values. Services encompass investment advice using a proven risk management approach, personalized portfolio construction, and strategic trust and estate planning. Clients can schedule a meeting with Goldman Sachs to explore how these services can help them meet their financial goals.
The Goldman Sachs Group had revenue of $45.68 billion in the twelve months ending December 31, 2023, down -3.56% year-over-year. Revenue in the quarter ending December 31, 2023 was $10.74 billion with 1.40% year-over-year growth. In the year 2023, The Goldman Sachs Group had annual revenue of $108.42 billion with 128.90% growth.
An aerial shot of a regional bank with its numerous branches situated in a city.
Methodology
To come up with our list of 20 Largest Banks in The World by Market Cap, we referred to Finviz stock screener consisting of the Largest Banks in The World by Market Cap. For our purpose, mostly diversified banks are our focus and we’ve ranked them on the basis of their market cap as of the writing of the piece, in ascending order of market caps. With this let’s now move on to our list of 20 Largest Banks in The World by Market Cap.
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20. IF Bancorp, Inc. (NASDAQCM:IROQ)
Market Capitalization: $55.27 million
20th on our list of 20 Largest Banks in The World by Market Cap is IF Bancorp, Inc. (NASDAQCM:IROQ). IF Bancorp, Inc. recently shared their financial results for the second quarter ending December 31, 2023. In the second quarter, they reported a decrease in net interest income to $4.39 million from $6.05 million the previous year. IF Bancorp, Inc. (NASDAQCM:IROQ) net income also saw a drop to $0.185 million from $1.4 million, impacting basic and diluted earnings per share from continuing operations.
19. The Bank of N.T. Butterfield & Son Limited (NYSE:NTB)
Market Capitalization: $1.41 billion
For the quarter ending 31 December 2023, The Bank of N.T. Butterfield & Son Limited (NYSE:NTB), a Bermuda-based bank, revealed positive revenue growth of 5.334% to $578.60 million, up from $549.30 million in the prior year. The Bank of N.T. Butterfield & Son Limited (NYSE:NTB) closed out the fiscal year 2023 with bottom-line earnings of $225.49 million, showing steady growth and performance.
18. East West Bancorp Inc (NASDAQGS:EWBC)
Market Capitalization: $10.1 billion
East West Bancorp Inc (NASDAQGS:EWBC) net income for the full year ending in December 2023 hit $1.2 billion, coming in at $8.18 per diluted share. After adjusting for some expenses and losses, their adjusted earnings per share for the year bumped up to $8.56. In the fourth quarter of 2023, their net income was $239 million, or $1.69 per diluted share. Adjusted for specific items, earnings per share for this quarter totaled $2.02. East West Bancorp Inc (NASDAQGS:EWBC) had a solid 18% return on average common equity for 2023 year and saw book value per share grow by 17% compared to the previous year.
17. Barclays PLC (NYSE:BCS)
Market Capitalization: $32.8 billion
Barclays PLC (NYSE:BCS), a British multinational bank, is based in London is 17th bank on our list of Largest Banks in The World by Market Cap. They have two main divisions – Barclays UK and Barclays International, along with Barclays Execution Services. In a bid to boost their share price, Barclays PLC (NYSE:BCS) laid out a plan in February involving cutting costs worth $2.5 billion, returning $12.7 billion to shareholders, and beefing up their UK retail banking sector.
16. Canadian Imperial Bank of Commerce (NYSE:CM)
Market Capitalization: $45.2 billion
Canadian Imperial Bank of Commerce (NYSE:CM), a Canadian multinational banking and financial services corporation headquartered in the Financial District of Toronto, reported decent fiscal first-quarter ending 31 January 2024 earnings, in line with expectations. Canadian Imperial Bank of Commerce (NYSE:CM) adjusted net income, excluding special assessment charges and other noncore expenses, declined by 4% year over year to $1.3 billion. Adjusted earnings per share increased by 15% quarter over quarter but decreased by 7% year over year, reaching $1.33.
15. ING Group N.V. (NYSE:ING)
Market Capitalization: $45.7 billion
ING Group N.V. (NYSE:ING), a big player in banking and financial services from the Netherlands, is based in Amsterdam. ING Group N.V. (NYSE:ING) offer a range of services like retail, direct, commercial, investment, wholesale banking, private banking, asset management, and insurance. For the period ending December 31, 2023, they saw a 31% jump in quarterly profit before tax to $2,439 million, while their CET1 ratio stayed robust at 14.7%. With income up by 11% compared to the previous year and solid net interest income, things looking strong for them. They also welcomed 236,000 new primary retail customers in the fourth quarter, maintained steady deposits, and saw growth in lending. Plus, their low risk costs, thanks to strong asset quality and risk management, were a highlight.
14. Banco Bilbao Vizcaya Argentaria (NYSE:BBVA)
Market Capitalization: $58.9 billion
Banco Bilbao Vizcaya Argentaria (NYSE:BBVA), commonly known as BBVA, is a major Spanish financial services corporation headquartered in Madrid and Bilbao, Spain. Banco Bilbao Vizcaya Argentaria (NYSE:BBVA) ranks among the world’s largest financial institutions and operates predominantly in Spain, Portugal, Mexico, South America, Turkey, Italy, and Romania.
For the year 2023, BBVA experienced significant growth, achieving record levels of operating income at $18.7 billion, a year-on-year increase of 39 percent. The company’s financial performance was influenced by rising interest rates and expansion in key markets, leading to a 34 percent increase in provisions for financial asset impairments, totaling $4.81 billion. This was primarily driven by increased provisioning requirements in Mexico and South America, resulting in a 1.15 percent cost of risk, as anticipated. For the fiscal year 2023, the BBVA Group reported a net attributable profit of $8.7 billion, marking a 40 percent year-on-year increase.
13. The Bank of Nova Scotia (NYSE:BNS)
Market Capitalization: $59.1 billion
Scotiabank, officially known as The Bank of Nova Scotia (NYSE:BNS), is a prominent Canadian banking and financial services institution headquartered in Toronto, Ontario. It is part of Canada’s Big Five banks and ranks as the third-largest Canadian bank based on deposits and market capitalization.
In the first quarter of the fiscal year 2024, which concluded on January 31, The Bank of Nova Scotia (NYSE:BNS) reported an adjusted net income of $1.63 billion, reflecting a nearly 6% decline compared to the previous year, excluding certain one-time items. The decrease in income was influenced by increased expenses, higher provisions for credit losses, and a reduction in loan balances. However, positive factors such as elevated non-interest income, net interest income, and strong capital ratios helped offset these challenges. When factoring out non-recurring items, the net income stood at $1.62 billion, showing a notable 25.1% increase year over year.
12. Banco Santander, S.A. (NYSE:SAN)
Market Capitalization: $64.4 billion
Santander Group, officially Banco Santander, S.A. (NYSE:SAN), is a well-known Spanish multinational financial services firm headquartered in Madrid and Santander, Spain, and is 12th on our list of Largest Banks in The World by Market Cap. It holds a prominent position as the 19th-largest banking institution globally with a strong presence in all major financial hubs.
In the fiscal year 2023, Banco Santander, S.A. (NYSE:SAN) achieved an attributable profit of €11,076 million, marking a 15% increase in current euros compared to 2022. This growth was primarily driven by robust revenue expansion, particularly in Europe, an increase in customer base, and effective cost management that offset the anticipated rise in provisions. During the fourth quarter ending on January 31, 2023, the attributable profit surged by 42% (28% in current euros) compared to the same period in 2022, reaching €2,933 million.
11. Bank of Montreal (NYSE:BMO)
Market Capitalization: $65.4 billion
Bank of Montreal (NYSE:BMO), a Canadian multinational investment bank and financial services company, has a long history as Canada’s oldest bank, established in Montreal, Quebec, in 1817 under the name Montreal Bank.
Bank of Montreal (NYSE:BMO) experienced a 3.7% decline in its shares following the announcement of its first-quarter fiscal 2024 results, which concluded on January 31. The adjusted earnings per share of $1.88 showed a 16.3% year-over-year decrease. The results were negatively impacted by a notable increase in provisions for credit losses and higher adjusted expenses. Nevertheless, growth in net interest income (NII) and non-interest income provided some positive momentum. Excluding one-time items, the net income stood at $0.95 billion, showing a significant increase compared to the same period in the previous year.
10. Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG)
Market Capitalization: $74.4 billion
Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG) serves as the parent company of SMBC Group, a prominent banking conglomerate in Japan. It is 10th on our list of 20 Largest Banks in The World by Market Cap.
The net income for Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG) in the twelve months ending December 31, 2023, stood at $5.604 billion, reflecting a 20.25% decrease compared to the previous year. In 2023, the annual net income for Sumitomo Mitsui Financial Group, Inc. was $6.748 billion, showing a significant 51.76% increase from the year 2022.
9. UBS Group AG (NYSE:UBS)
Market Capitalization: $93.6 billion
UBS Group AG (NYSE:UBS)is an international investment bank and financial services corporation established and headquartered in Switzerland. In the fourth quarter of 2023 ending 31 December 2023, UBS Group AG (NYSE:UBS) reported a Profit Before Tax (PBT) of USD 751 million, which includes losses of USD 508 million associated with the investment in SIX Group, integration expenses, and various adjustments. The underlying Profit Before Tax (PBT) for the same period was USD 592 million. For the fiscal year 2023, UBS Group AG recorded a Profit Before Tax (PBT) of USD 29,916 million, with USD 28,925 million attributed to negative goodwill.
8. Citigroup Inc. (NYSE:C)
Market Capitalization: $106.3 billion
8th on our list of 20 Largest Banks in The World by Market Cap is Citigroup Inc. (NYSE:C). Citigroup Inc., known as Citi, is a U.S.-based multinational investment bank and financial services firm established in Delaware and headquartered in New York City. In the fiscal year 2023 ending 31 December 2023, Citigroup Inc. (NYSE:C) disclosed a net income of $9.2 billion on revenues totaling $78.5 billion. This is in contrast to the net income of $14.8 billion and revenues of $75.3 billion reported for the full year 2022.
7. The Toronto-Dominion Bank (NYSE:TD)
Market Capitalization: $107.5 billion
The Toronto-Dominion Bank (NYSE:TD), operating as TD Bank Group, is a Canadian multinational banking and financial services entity headquartered in Toronto, Ontario. In the first quarter ending 31 January 2024, The Toronto-Dominion Bank (NYSE:TD) disclosed a net income of $2.0 billion or $1.14 per share. When excluding one-time items, earnings amounted to $2.6 billion or $1.47 per share, a decrease from the $3 billion or $1.34 per share recorded in the preceding year.
6. Mitsubishi Ufj Financial Group Inc. (NYSE:MUFG)
Market Capitalization: $123.9 billion
Mitsubishi Ufj Financial Group Inc. (NYSE:MUFG) is a prominent Japanese bank holding and financial services corporation based in Chiyoda, Tokyo, Japan. It is 6th bank on our list of Citigroup Inc. (NYSE:C). Demonstrating strong financial performance, Japan’s largest lender by assets, Mitsubishi Ufj Financial Group Inc. (NYSE:MUFG) reported a significant increase in its net profit for the third quarter. The profit for the period spanning October to December surged to approximately $2.50 billion. This notable growth represents a substantial rise from the $746.7 billion recorded in the corresponding period of the previous year.
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Disclosure: None. 20 Largest Banks in The World by Market Cap is originally published on Insider Monkey.