This list contains the top 10 largest banks in the world in terms of market capitalisation. Market capitalisation is the amount calculated by multiplying the market price of that company’s share with the total value of outstanding shares. It is the major tool used by the investment community to rank companies as it estimates their current market value accurately. Checkout the list of top 10 largest banks in the world by market cap in 2019.
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10. CommonWealth Bank of Australia
This bank ranks 5th in terms of market capitalisation value. Its current value of market cap stands at $106.335 billion dollars. Being one of the well-established banks in the Southern Hemisphere, the firm has its business live in countries like New Zealand, Fiji, Asia, United States and United -Kingdom. Its financial services include business and insurance banking, funds management, retail, insurance, investment, banking services. It has total assets worth over $703 billion dollars.
9. Agricultural Bank of China
It is commonly referred as AgBank or ABC bank. It is one of the government-owned banks in China. It was founded in 1951 in Beijing. Its current market cap stands around $148.100 billion dollars. It has 320 million retail customers and 2.7 million corporate clients. It has around 24,000 branches across many countries. It offers services like finance and insurance, consumer banking, corporate banking, and private equity. Its total assets are about $3139.44 billion dollars.
8. China Construction Bank
China Construction bank corporation is the 3rd best bank in the world. Its net market cap stands at $186.868 billion dollars. It is also one of the state-controlled banks in China. It was founded in October 1954. It has more than 13,629 domestic branches. Bank of America got about 9% stake in this bank in 2005. This was the largest stake owned by anyone outside China in a Chinese international bank. It subsequently sold it during 2013. One of its major investments includes China Healthcare Investment Fund which mainly focuses on China’s health sector.
7. Bank of America
Bank of America is headquartered in Charlotte, North Carolina. It is 7th in terms of market capitalisation. Its market cap is around $228.778 billion dollars. It was founded in 1922 by Giannini. It has around 46 million customers and operates around 4,600 banking centers. It acquired Merrill Lynch in 2008, which made it the largest wealth management corporation in the world. It has partnered with United States Department of Defence to create DOD community bank which caters to the need of more than 68 thousand military personnel working in several US military installations.
6. Wells Fargo and Company
Wells Fargo and Co have been named as one of the best banking companies in terms of market capitalisation. Its current market capitalisation stands at $276.578 billion dollars. It has its headquarters in San Francisco, USA. This bank is a combination of two powerful firms Wells Fargo & company and the Norwest corporation and this merging activity took place in 1998. It has more than 8700 branches in 35 countries. It has more than 70 million customers at present. It has total assets of about $1930.12 billion dollars. Its operations include community banking, wholesale banking, and wealth, brokerage and retirement.
5. Bank of China
Bank of China is the fifth largest bank in terms of market capitalisation. Its market capitalisation stands at $145.729 Billion US dollars. It is a state-owned commercial bank. It was formed in 1912 by the republican government. It is the oldest bank to be operational in China till date. It operates in 27 countries including Australia, Canada, UK, Japan, Singapore, France, Italy. It is the first Chinese bank to open 2 global commodity centers outside China in Singapore. Its total assets amount to $2964.32 billion dollars.
4. Citigroup Inc.
This is a US-based multinational investment banking and financial services corporation. It has its headquarters in Manhattan, New York City. Its market capitalisation is $159.898 billion dollars. One of its major shareholders is Prince Al-Waleed bin Talal of Saudi royal family. It has 200 million customer accounts in over 160 countries. Its current employee count stands around 219,000. Its total assets amount to $1790.68 billion dollars.
3. HSBC Holdings PLC
This is a British multinational banking and financial services holding company. It has a market cap worth $165.893 billion dollars. Its name HSBC is derived from the names Hong Kong and Shanghai Banking Corporation. It has more than 4000 branches in over 70 countries. It has more than 37 million customers worldwide. Its operations include commercial banking, global banking, retail banking and wealth management. It is present in Asia, America, and Europe. HSBC is the official banking partner of Wimbledon Championships Tennis tournament.
2. Industrial and Commercial Bank of China
It is often referred as ICBC bank. It’s the second largest bank in terms of market capitalisation and stands at $229.700 billion dollars. But it is the largest bank in the world in terms of total assets. Its total assets net worth stands around $3893.29 billion dollars. Its headquarters is in Beijing, China. It has 2.5 million corporate customers and 150 million individual customers. It was recognised as the Best Banking Performer in China in 2016 by Global Brands Magazine Award.
1. JP Morgan
JP Morgan Chase and Co is an American multinational banking company. It is the #1 bank in terms of market capitalisation which stands at $299.393 billion dollars. It is the largest bank which is present in the United States. It was formed in 2000 when Chase Manhattan Corporation merged with JP Morgan and company. Its current employee count is more than 250,000. It was formed by merging different banks that are well-established already. It was recognised as the Best Banking Performer in the United States of America in 2016 by Global Brands Magazine Award. Its total assets stand around $2563 billion dollars.
These are the largest banks in the world. It can be seen that there is a difference in the total assets of each bank. Thus, banks which have higher total assets but with a lower value of market capitalisation were ranked lower. They have reached this state due to their market strategies and customer support which takes years to build up.