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10 Largest Banks In The World By Total Assets: China Takes Top 4

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Banking institutions are an integral part of the world economy. They have been around for centuries, and will probably be here for a long time. Here we take a look at the top 10 largest banks in the world. The ranking is based on data from S&P Global Intelligence, which publishes a report on global banking and financial services every year, ranking the world’s 100 largest banks based on total assets.

Ranked: Top 10 largest banks

American banks dominated the ranking for decades. But the emergence of China as a global economic powerhouse has helped many Chinese banks earn a place among the largest in the world. Out of the top 10 largest banks, four are from China, two from the US, and two from France.

The S&P Global Market Intelligence’s ranking is based on total reported assets. It’s not adjusted for different accounting practices. The US banks use US GAAP method while banks in most other countries use the IFRS. If American banks reported under the IFRS method, JPMorgan Chase would be the fourth biggest bank instead of sixth.

10- Credit Agricole

The second largest banking behemoth in France has total assets of $2,117 billion. It has been ranked as one of the world’s most sustainable companies. Founded in 1894, Credit Agricole has a history of providing banking and other financial services to farmers. It also happens to be the world’s largest cooperative financial institution.

9- Bank of America

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Personal finance guru Ramit Sethi has been a vocal critic of the Bank of America, calling it “one of the worst banks on the planet.” But it is one of the world’s largest banks with total assets of $2,281 billion. With a market value of $325 billion, it’s the world’s third largest bank by market capitalization. The company strengthened its investment banking arm by acquiring Merrill Lynch in 2008.

8- BNP Paribas

The largest bank in France was created in 2000 following the merger of Banque Nationale de Paris (BNP) and Paribas. It has $2,357 billion of assets under management. BNP Paris has more than 40 million customers in 75 countries across the globe.

7- HSBC Holdings

Headquartered in London, HSBC is the largest bank in Europe with total assets of $2,521 billion. It was established in 1885 as Hong Kong and Shanghai Banking Corporation in British Hong Kong. It has offices in more than 80 countries, offering consumer finance, private banking, corporate banking, and investment banking services. HSBC has found itself in the midst of several scandals including money laundering in the last few years.

6- JPMorgan Chase & Co

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This is the largest bank in the United States by total assets as well as by market capitalization. The company has $2,533 billion in assets under management and its market value currently stands at $390 billion. It was formed in 2000 following the merger of JPMorgan & Co and Chase Manhattan Bank. It offers retail banking, corporate banking, asset management and private wealth management services.

5- Mitsubishi UFJ Financial Group

The Japanese financial conglomerate has $2,787 billion of assets under management. It offers retail banking, corporate banking, and investment banking services. It was formed in 2005 following the merger of Bank of Tokyo-Mitsubishi and UFJ Bank. It is also the second largest public company in Japan.

4- Bank of China

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The top four largest banks on the planet are all Chinese, which are known as the “Big Four.” The Bank of China has total assets of $2,991 billion. It was established in 1912 as one of the official issuers of bank notes. The bank has a presence in more than 27 countries including Canada. Besides retail banking and corporate banking, the Bank of China is engaged in insurance and wealth management services.

3- Agricultural Bank of China

Also known as AgBank, it has $3,235 billion of assets under management. The Agricultural Bank of China was created in 1951 following the merger of the Cooperation Bank and the Farmers Bank of China. It has more than 330 million customers and 25,000 branches across China. The state-owned giant is one of the world’s top 10 largest banks.

2- China Construction Bank Corp

Headquartered in Beijing, the CCB has a staggering $3,400 billion of assets under management. It offers retail banking, corporate banking, investment banking, private equity, and wealth management services. It also operates in the treasury sector, dealing with debt securities, money markets, and currencies. Until 2013, the Bank of America owned a little over 10% of the China Construction Bank.

1- Industrial & Commercial Bank of China

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China’s ICBC is the largest bank on the planet with total assets of $4,009 billion. The state-owned bank offers retail banking, corporate banking, and investment banking services. It was founded in 1984. The ICBC has close to half a million employees across China. It has subsidiaries in Canada, Macau, and Turkey.

This article originally appeared on ValueWalk. Follow ValueWalk on TwitterInstagram and Facebook.

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VIDEO: Here’s How You Know A Company Is F*****

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Well…not much to say here. The header sort of speaks for itself. As told by Investopedia‘s Microsoft Sam-sounding narrator. Check it out.

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Chart: All The AI Startup Exits That Made Over A Billion Dollars

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Artificial intelligence—AI—is getting those investor checks. In Q2 alone, AI startups raked in $7.4B in funding. And if you look at the exits, you can see why VCs are bullish. It’s a sector that’s delivering some very valuable exits.

Since 2013, seven AI companies have had billion-dollar exists—either through IPO or M&A—four of which have taken place in the last two years. Here’s a chart from CB Insights with all seven.

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10 Bizarre Things About The WeWork IPO Filing

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wework

As WeWork goes public in its recently announced IPO, professionals and entrepreneurs better take note. The sharing economy is spreading its wings beyond Uber and AirBnB.

Although less well known than those icons of the sharing economy, WeWork could change how we work in the years ahead.

That said, its IPO is a bit bizarre, as the media has been quick to point out. Here’s why.

1. We Work Is Running Spectacular Losses

In 2018, the company had a net loss of $1.9 billion. In the first 6 months of 2019 alone, it lost another $900 million.

2. Investors Worry The Company Will Run Out Of Cash

MKM Partners’ Rohit Kulkarni said the company faces a real prospect of running out of cash in a few months’ time.

3. WeWork Is Spending Money Like It’s 1999

via GIPHY

The startup has a burn rate of $150m-$200m a month.

4. Over $47 billion In Future Lease Obligations

WeWork will need to make a ton of money in the future to make it all work.

5. Its Contracts With Users Are Short Term

The startup keeps things flexible for users but is taking on more of the risk itself.

6. The Company Could Be On The Hook If Users Leave

If users defect, WeWork’s rent obligations remain. This should worry any investor.

7. WeWork’s Business Model Is Iffy At Best

The company has declining revenue per user, on top of its failure to be profitable. In other words, things could get worse for investors.

8. Conflicts Of Interest With The CEO  

WeWork leases some buildings owned in part by CEO Adam Neumann, paying millions in rents for it.

9. WeWork’s China Assets A Puzzle For Investors

The company’s assets in China are puzzling for investors, and they carry unique risks yet to be fully understood.

10. Despite All Its Troubles, WeWork Has A Staggering Valuation

via GIPHY

This unicorn has a valuation of $47 billion. Some in the business media say it’s based on smoke and mirrors. The IPO could be a good test of whether the valuation will hold.

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