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Today, large banks serve their traditional client base, which comprises individual customers and companies of all sizes. They offer various services such as savings and checking accounts, certificates of deposit, loans, and other related financial solutions.
Additionally, many of these banks have expanded their operations to include investment banking services. They work with corporate and institutional clients, providing services like underwriting stock offers, brokerage, and merger and acquisition advisory.
In this list, we will explore the ten largest banks based on their 12-month trailing revenue. The selection is limited to companies publicly traded in the United States or Canada, either directly or through American Depositary Receipts (ADRs).
It's important to note that some non-U.S. companies report profits semi-annually instead of quarterly, which means that the 12-month trailing data may be older compared to companies reporting quarterly. The figures mentioned in this list are as of December 16, 2022, and the data is sourced from YCharts.
Banking
Banking refers to the business activity of accepting and safeguarding money owned by individuals and entities and then lending or investing those funds to earn a profit.
Methodology
To compile this list, we have relied on market capitalization as a key criterion, representing the total value of a bank's outstanding shares.
Market capitalization reflects the market's assessment of a bank's worth and can serve as an indicator of its size, influence, and potential for growth. It is essential to note that rankings may vary over time due to market fluctuations and changes in share prices.
Industrial and Commercial Bank Of China Ltd. (IDCBY)
Revenue (TTM): $143.32B
Net Income (TTM): $55.34B
Market Cap: $173.9B
1-Year Trailing Total Return: -2.9%
Exchange: OTC
The Industrial and Commercial Bank Of China Ltd. (ICBC) holds the top position as the largest bank in the world in terms of total assets under management (AUM) and gross revenues.
As a state-owned commercial bank, ICBC provides a wide range of financial services, including credit cards, loans, and money management solutions for businesses and high-net-worth individuals. With its vast network and strong presence, ICBC contributes significantly to China's banking sector and plays a vital role in supporting the country's economic growth.
China Construction Bank Corp. (CICHY)
Revenue (TTM): $126.79B
Net Income (TTM): $48.49B
Market Cap: $148.5B
1-Year Trailing Total Return: -4.5%
Exchange: OTC
China Construction Bank Corp, the second-largest bank globally, plays a crucial role in supporting China's economic development. The bank specializes in providing corporate banking services, including e-banking, credit lines, and commercial loans.
In addition to its corporate offerings, China Construction Bank also operates a separate segment catering to personal banking needs. It offers a range of services to individual customers, such as personal loans, deposits, wealth management, and credit cards, contributing to the growth and stability of China's financial landscape.
JPMorgan Chase & Co. (JPM)
Revenue (TTM): $123.42B
Net Income (TTM): $37.07B
Market Cap: $381.6B
1-Year Trailing Total Return: -15.0%
Exchange: New York Stock Exchange (NYSE)
JPMorgan Chase & Co., a multinational bank and financial services holding company, operates on a global scale, serving a diverse range of clients. The company's extensive offerings encompass corporate lending, asset management, wealth management, investment banking, and consumer banking services.
JPMorgan Chase & Co. is recognized for its strong presence in the financial industry and its ability to navigate complex markets, provide innovative financial solutions and contribute to the growth and stability of global economies.
Bank of America Corp. (BAC)
Revenue (TTM): $92.48B
Net Income (TTM): $27.41B
Market Cap: $254.9B
1-Year Trailing Total Return: -26.0%
Exchange: NYSE
Bank of America Corp., one of the leading banks in the United States, serves a wide range of clients, including individual customers and businesses of all sizes. The bank's comprehensive suite of services includes deposit accounts, checking accounts, commercial banking, and wealth management.
Through its global branches, Bank of America caters to the diverse financial needs of its clients, supporting their growth and prosperity.
Wells Fargo & Co. (WFC)
Revenue (TTM): $74.98B
Net Income (TTM): $16.07B
Market Cap: $157.6B
1-Year Trailing Total Return: -13.5%
Exchange: NYSE
Wells Fargo & Co., a prominent financial institution, offers a diverse range of banking services to individuals, businesses, and institutional clients. The bank's comprehensive portfolio includes personal and commercial banking, wealth management, and investment banking solutions.
Wells Fargo's commitment to providing exceptional customer service and tailored financial solutions has established its position as a trusted banking partner for individuals and businesses alike.
Citigroup Inc. (C)
Revenue (TTM): $74.31B
Net Income (TTM): $15.51B
Market Cap: $86.4B
1-Year Trailing Total Return: -23.0%
Exchange: NYSE
Citigroup Inc., headquartered in New York, is a multinational investment bank and financial services company with a strong global presence. The company offers a wide range of services, including securities services, institutional financial services, and global retail banking.
Citigroup's diverse product offerings cater to the needs of various client segments, including individuals, corporations, and institutional investors, contributing to the growth and stability of the global financial landscape.
BNP Paribas (BNPQY)
Revenue (TTM): $70.33B
Net Income (TTM): $11.17B
Market Cap: $67.7B
1-Year Trailing Total Return: -7.1%
Exchange: OTC
BNP Paribas, one of the largest banks in the world, operates internationally and holds a prominent position in Europe, the Middle East, and North Africa. The bank offers a wide range of financial services, including retail banking, corporate and investment banking, asset management, and private banking.
BNP Paribas's expertise in financing, investment, and risk management positions it as a trusted partner for individuals, businesses, and institutions across the globe.
HSBC Holdings (HSBC)
Revenue (TTM): $56.28B
Net Income (TTM): $13.22B
Market Cap: $119.7B
1-Year Trailing Total Return: 8.6%
Exchange: NYSE
HSBC Holdings, headquartered in London, is one of the largest banks globally, operating in more than 60 countries. The bank offers a comprehensive range of financial products and services, including retail and commercial banking, wealth management, and investment banking.
HSBC serves diverse customer segments, ranging from individuals to small and medium-sized enterprises and large corporations. Its significant presence in insurance, asset management, and other financial services further reinforces its position as a global financial powerhouse.
Banco Santander (SAN)
Revenue (TTM): $54.64B
Net Income (TTM): $10.40B
Market Cap: $47.5B
1-Year Trailing Total Return: -1.2%
Exchange: NYSE
Banco Santander, headquartered in Madrid, Spain, operates in more than 10 countries and offers a wide range of financial products and services. The bank's portfolio includes retail and commercial banking, investment banking, asset management, and insurance.
Banco Santander serves diverse customer segments, ranging from individuals to small and medium-sized enterprises and large corporations. It's comprehensive offerings and global presence contribute to its reputation as a trusted banking partner.
China Merchants Bank (CIHKY)
Revenue (TTM): $51.79B
Net Income (TTM): $20.30B
Market Cap: $133.4B
1-Year Trailing Total Return: -32.2%
Exchange: OTC
China Merchants Bank (CMB), headquartered in Shenzhen, China, is one of the largest banks in China and operates both domestically and internationally. The bank provides retail and corporate banking, investment banking, and asset management services.
CMB's strong focus on retail banking is evident through its extensive branch and ATM network, tailored products, and services for individual customers. The bank also serves corporate clients, including small and medium-sized enterprises and large corporations, contributing to China's vibrant financial landscape.
Conclusion
The world's largest banks have experienced substantial growth over time, driven by factors such as organic expansion, M&A activities, innovation, and market dominance.
These banks offer a wide range of financial products and services to individual consumers, businesses, and institutional clients, including managing deposits, lending, wealth management, currency exchange, and investment banking.
Notably, the top banks by both revenue and market cap are predominantly concentrated in the United States and China, reflecting a shift in global banking dynamics and the declining dominance of major European banks.
FAQ
What Are the Largest Banks by Market Capitalization?
Market capitalization (or "market cap") is a measure of a public company's value, calculated by multiplying its share price by the number of shares outstanding. It's important to note that the order of this list may change as stock prices fluctuate, so the relative positioning of banks by market cap can vary from day to day or week to week.
The top 10 banks by market cap as of March 20, 2023, are:
- JP Morgan Chase (JPM) with a market cap of $376 billion
- Bank of America (BAC) with a market cap of $225 billion
- Industrial and Commercial Bank of China (ICBC) (IDCBY) with a market cap of $224 billion
- China Construction Bank (CICHY) with a market cap of $163 billion
- Bank of China (BACHF) with a market cap of $158 billion
- Agricultural Bank of China (ACGBY) with a market cap of $154 billion
- Morgan Stanley (MS) with a market cap of $145 billion
- Wells Fargo (WFC) with a market cap of $144 billion
- HSBC (HSBC) with a market cap of $133 billion
- Royal Bank of Canada (RY) with a market cap of $130 billion
(Source: Yahoo! Finance)
How Do Banks Make Money?
Banks generate revenue by borrowing from depositors and lending to borrowers. The difference between the interest rate they credit to depositors and the rate they charge borrowers for loans, known as the spread or net interest income, is a primary source of income for banks.
Additionally, banks earn money through fees or commissions for various services, including account servicing, brokerage, wealth management, financial advising, and investment banking.
How Did the Biggest Banks Get So Big?
The largest banks have achieved their current size through a combination of factors. Organic growth occurs as banks expand their customer base, introduce new products and services, and increase their assets under management.
Mergers and acquisitions (M&A) have also played a significant role in the growth of big banks, allowing them to consolidate their market positions by acquiring or merging with other financial institutions.
