RBI looks at the top 10 banks in the world by market cap: how have the biggest banks performed for the year to date?
JPMorgan Chase, the world’s largest bank by market cap enjoyed a strong 2017 with a 20%+ rise in its share price. Chase has kicked off 2018 strongly with its share price up by 4.6% for the year to date.
biggest banks in the world by market cap: China dominance
Four of the world’s top 10 banks are headquartered in China with ICBC the world’s second largest bank by market cap.
ICBC had a storming 2017 with its share price rising by 32%. Across the sector, the major Chinese banks are posting their best results for three years, boosted by improved net margins and a macroeconomic environment boosting the appetite for quality lending.
In the first quarter of 2018, ICBC posted a 4% rise year-on-year in first quarter net profit to about $12.5bn but for the year to date its share price has inched down by 4%.
The world’s third-largest bank by market cap, Bank of America, RBI’s 20188 Global retail bank of the year, has witnessed a 4% rise in its share price for the year to date.
In 2017, Bank of America shares rose by just over 30%.
Wells Fargo endured a challenging 2017 on the back of its mis-selling scandal. Its share price in 2017 underperformed the market rising by a modest 6%. For the year to date, Wells’ share price is down by 8%.
Wells’ first quarter results were its worst quarterly earnings for six years and included a charge of $800m relating to a settlement with US regulators.
China Construction Bank is the world’s fifth largest bank by market cap: after a strong 2017 and a 28% rise in its share price, it is down by 6% for the year to date.
By contrast, Bank of the China’s share price is flat for the year to date following a 13% rise in its share price in 2017.
The seventh largest bank by market cap, Citigroup has witnessed a 5% fall in its share price for the year to date after a 27% rise in 2017.
Citi posted a strong set of results for the first quarter of 2018 but its net interest income and margin fell just below market forecasts.
HSBC’s share price is down by 4% for the year to date following a 9% rise in 2017. HSBC’s first quarter profits before tax fell by 4% year-on-year on the back of a rise in operating costs.
Agricultural Bank of China’s share price is flat for the year to date after a 20% rise in 2017.
Royal Bank of Canada rounds off the world’s largest 10 banks and its share price is flat for the year to date after a 11% rise in 2017.
