Top 5 Banks

Business: 5 World’s Largest Banks in 2008

Posted on July 22, 2008 by jaggerkieth Following is the list of 10 largest banks in the world in terms of market capitalization size, as released by Bloomberg on February 2008. Market capitalization (aka market cap) is a way of measuring the corporate or economic size of a public listed company.
In other words, capitalization could also represent the net worth of a company according to public opinion.
The latest table reveals some major surprises, and this 2008 list is considered one of the most unlikely ranking. The most noticeable change is the breaking up of US domination, spearheaded mainly by the Asian banks, notably from China, which are making the banks in the western world sweat.
1. Industrial & Commercial Bank of China, ICBC (China) The Beijing based ICBC Bank underwent one of the most remarkable faces of growth barely 2 years after going public, which gives a clear indication of investors’ preference in the emerging China market. ICBC offers a wide range of personal and corporate banking services which include loan, deposit, credit card, underwriting, trading and currency settlement. ICBC was listed simultaneously on two exchanges – the Shanghai Stock Exchange and Hong Kong Stock Exchange in 2006, making it the first and only company to do so. ICBC has won numerous accolades and awards from various international magazines including Bankers, Global Finance, The Assets and Finance Asia.
Market capitalization – US277.514 billion. Previous ranking (as of Jan 2007) – 4.
2. Bank of America (US)Bank of America (BoA) has now taken over Citibank as the biggest commercial bank in the United States by market cap and deposits. Started in California, BoA then grew its operation to Washington, and soon began a rapid expansion nationally and internationally.
In the process of getting where they are today, the bank has gone through good and bad times. In late 1980s BoA suffered huge loss as a result of non-performing loan, which saw the then CEO, Sam Armacost fired and replaced. It almost fell into a hostile takeover but came back with a bang and became one of the biggest gainers in a decade. The bank retains its position in the second spot.
Market capitalization – US195.933b. Previous ranking – 2.
3. HSBC Holdings (UK)
Earlier this year, HSBC was named as the world’s most valuable banking brand by The Banker Magazine. The bank was incorporated in England and Wales, with its main office located in London. In 1992, HSBC was involved in one of the world’s largest banking acquisition, after assuming full ownership of Midland Bank.
The merger also saw the beginning of HSBC setting up strong market presence, particularly in Europe. Apart from United Kingdom HSBC now also has significant operation in France, Czech Republic, Germany, Ireland, Switzerland, Turkey as well as Malta. Just like Bank of America, HSBC maintains its ranking.
Market capitalization – US176.788b. Previous ranking – 3.
4. China Construction (China)
The bank was first established as the People’s Construction Bank of China and was changed to the current name in 1996. The bank’s rise to prominence is also helped with the involvement of Bank of America which injected some significant amount of investment for the past few years. In 2005, the China Construction bank landed into a scandal that involved the Chairman of the company, Zhang Enzhao.
Zhang was alleged to have received one million dollars bribe from an American company, which in return asked for an award of contract. Zhang eventually resigned from his post. The bank has more than 13,000 branches across its native country China, as well as active operation in Singapore, Hong Kong, German, Africa, Japan and Korea.
Market capitalization – US165.234b. Previous ranking – 7.
5. Bank of China (China)
The third and final bank from China to make it to the top 10. In China, there is the term referred as the ‘Big Four’ banks and Bank of China is one of them.
Bank of China is the first bank established in the land of the dynasties. In the earlier years, the bank acted as the Central Bank but then its role was replaced and then converted into a full-fledge commercial bank. While the bank has overseas operation in Australia, United Kindom, Canada, United States, Brazil, Japan, Philippines, Malaysia and Korea, the overseas business only accounts for less than 5 percent of the company’s overall revenues.