The global banking sector witnessed little impact following the recent collapse of the Silicon Valley Bank and Credit Suisse, says GlobalData, a data analytics and research company
According to GlobalData, the aggregate market capitalisation of the top 25 global banks dropped by just 2.5% to $3.2tn quarter-on-quarter during the first quarter ending on 31 March 2023.
Banks such as Charles Schwab, Bank of America and Wells Fargo lost over 10% in market capitalisation during Q1 2023. On the other hand, UBS Group gained over 10% in market capitalisation, while China’s Big Four banks gained between 4 and 8% during that period.
GlobalData Company Profiles analyst Murthy Grandhi said: “Banks that gained the most during Q1 included UBS Group, HSBC, and Agricultural Bank of China. Postal Savings Bank of China, Bank of China, and Bank Central Asia. Charles Schwab, Bank of America, and Wells Fargo witnessed a drop in market capitalisation
“Charles Schwab’s market capitalisation fell by 37.9% mostly due to negative investor sentiment as its massive bond holdings of longer maturities created fear of another crisis despite enough liquidity in the form of US$40 billion of cash and equivalents and a low loan-to-deposit ratio. Bank of America and Wells Fargo faced a market capitalisation decline of 13.9% and 10.3%, respectively, due to selloffs owing to the regional banking crisis”, Grandhi added.
In the UK, HSBC made significant gains in revenues in FY2022, resulting in a 9.9% increase in its market capitalisation ($135.9bn).