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The World’s Top 10 Banks

International banks continue to grow their assets as the world economy expands. If no major economy falters, the expansion may continue. While there is some debate whether China’s economy is bigger than the United States’, there is no questioning which nation is home to the largest banks. The power in banking is unquestionably shifting eastward to China. Out of the top 10 largest banks by assets, only two are American banks. They rank number six and nine. The leading banks by far are Chinese banks. China holds the top four slots in the top 10.

A. Industrial & Commercial Bank of China

Industrial and Commercial Bank of China was established on 1 January 1984. On 28 October 2005, the Bank was wholly restructured to a joint-stock limited company. On 27 October 2006, the Bank was successfully listed on both Shanghai Stock Exchange and Stock Exchange of Hong Kong Limited. Through continuous endeavor and stable development, the Bank has developed into one of the top large listed banks in the world, possessing an excellent customer base, a diversified business structure, strong innovation capabilities and market competitiveness and providing comprehensive financial products and services to 5,784 thousand corporate customers and 530 million personal customers. With serving the real economy as the foothold of operation and management, the Bank has adhered to new ideas, new finance and new services to support the supply-side structural reform and economic transformation and upgrading and to achieve its own healthy and sustainable development. The Bank has further promoted reform and innovation as well as business transformation and developed retail finance, asset management, financial market and other businesses into important engines of profit growth. The pattern of internationalized and diversified operation was further improved, covering 42 countries and territories, and contributed more to the Bank’s profit-making. For the fourth consecutive year in 2016, the Bank ranked 1st place in the three authoritative lists of The Banker’s Top 1000 World Banks, the Forbes Global 2000 and the Fortune Global 500 Sub-list of Commercial Banks

Address of head office :

No.55 FuXingMenNei Street, Xicheng District, Beijing, P.R.C

Post Code :100140

B. China Construction Bank Corp.

China Construction Bank Corporation, headquartered in Beijing, is a leading large-scale joint stock commercial bank in China. Its predecessor China Construction Bank was established in October 1954. It was listed on Hong Kong Stock Exchange in October 2005 (stock code: 939) and the Shanghai Stock Exchange in September 2007 (stock code: 601939). At the end of 2017, the Bank’s market capitalisation reached US$232,898 million, ranking fifth among all listed banks in the world. In terms of tier 1 capital, the Group ranked second in the World’s Top 1000 Banks by the UK magazine The Banker in 2017.

With 14,920 banking outlets and 352,621 staff members, the Bank provides services to hundreds of millions of personal and corporate customers, and maintains close cooperation with leading enterprises in strategic industries in the Chinese economy and numerous high-end customers. The Bank has commercial banking branches and subsidiaries in 29 countries and regions, and its subsidiaries cover various industries, including asset management, financial leasing, trust, life insurance, property & casualty insurance, investment banking, futures and pension.

Adhering to the “customer-centric, market-oriented” business philosophy, the Bank is committed to developing itself into a bank with top value creation capability. The Bank strives to achieve the balance between short-term and long-term benefits, and between business goals and social responsibilities, so as to maximise the value for customers, shareholders, society and its associates.

Address of headquarters:

No.25, Finance Street, Xicheng District, Beijing, China, Postcode 100033

C. Agricultural Bank of China

The predecessor of the Bank was Agricultural Cooperative Bank established in 1951. Since the late 1970s, the Bank has evolved from a state-owned specialized bank to a wholly state-owned commercial bank and subsequently a state-controlled commercial bank. The Bank was restructured into a joint stock limited liability company in January 2009. In July 2010, the Bank was listed on both the Shanghai Stock Exchange and the Hong Kong Stock Exchange.

Address of headquarters:

Address:No.69,Jianguomen  Nei Avenue,Dongcheng  District,Beijing, P.R.China,100005

D. Bank of China

Bank of China was formally established in February 1912 following the approval of Dr. Sun Yat-sen. From 1912 to 1949, the Bank served consecutively as the country’s central bank, international exchange bank and specialised international trade bank. Fulfilling its commitment to serving the public and developing China’s financial services sector, the Bank rose to a leading position in the Chinese financial industry and developed a good standing in the international financial community, despite many hardships and setbacks. After 1949, drawing on its long history as the state-designated specialised foreign exchange and trade bank, the Bank became responsible for managing China’s foreign exchange operations and provided vital support to the nation’s foreign trade development and economic infrastructure by its offering of international trade settlement, overseas fund transfer and other non-trade foreign exchange services. During China’s reform and opening up period, the Bank seized the historic opportunity presented by the government’s strategy of capitalising on foreign funds and advanced technologies to boost economic development, and became the country’s key foreign financing channel by building up its competitive advantages in foreign exchange business. In 1994, the Bank was transformed into a wholly state-owned commercial bank. In August 2004, Bank of China Limited was incorporated. The Bank was listed on the Hong Kong Stock Exchange and the Shanghai Stock Exchange in June and July 2006 respectively, becoming the first Chinese commercial bank to launch an A-Share and H-Share initial public offering and achieve a dual listing in both markets. In 2016, Bank of China was again designated as a Global Systemically Important Bank, thus becoming the sole financial institution from emerging economies to be designated as a Global Systemically Important Bank for six consecutive years.

Headquarters: Beijing, China

E. HSBC Holdings (HSBC)

HSBC Commercial Banking operates in 53 countries and territories, covering the developed and developing markets that matter most to our customers. Through our teams of relationship managers we connect businesses to opportunities, helping them to thrive and grow.

We work with a wide range of customers, from small enterprises to mid-market companies and large multinationals, providing them with the tools they need to function efficiently. As a cornerstone of the HSBC Group we have the financial strength to support our customers with working capital, term loans and acquisition or project finance, and the expertise to help them raise money from the stock and bond markets.

Our relationship managers are supported by specialists in four fields:

  • Global Trade and Receivables Finance provides services and financing for buyers and suppliers throughout the trade cycle, helping them to use working capital efficiently, manage trade risk and fund their supply chains
  • Global Liquidity and Cash Management gives businesses greater control over their cash and collections, and helps them to manage their liquidity efficiently. Our e-banking platforms enable customers to make seamless payments between countries and currencies
  • Global Banking provides commercial clients with access to a wide range of capital financing, including debt, equity and advisory services
  • Insurance and Investments offers business and financial protection, trade insurance, employee benefits, corporate wealth management and a variety of other commercial risk insurance products

F. JPMorgan Chase & Co. (JPM)

The firm is built on the foundation of more than 1,200 predecessor institutions that have come together through the years to form today’s company. We trace our roots to 1799 in New York City, and our many well-known heritage firms include J.P. Morgan & Co., The Chase Manhattan Bank, Bank One, Manufacturers Hanover Trust Co., Chemical Bank, The First National Bank of Chicago, National Bank of Detroit, The Bear Stearns Companies Inc., Robert Fleming Holdings, Cazenove Group and the business acquired in the WaMu transaction. Each of these firms, in its time, was closely tied to innovations in finance and the growth of the U.S. and global economies.

G. BNP Paribas

This French bank has assets of $2.4 trillion. It has offices in 75 countries, including the United States. This bank was ranked second among banks in the euro zone in 2016.

The analyst consensus on the stock of BNP Paribas is a “buy.” The bank is merging its research teams and expects to cut some analyst jobs in 2017.

The company announced on April 5, 2017 that it had sold its shares in the Dakota Pipeline. The sale was worth $120 million.

H. Mitsubishi UFJ Financial Group

This is a Japanese bank that offers consumer banking, as well as business and private banking. This is also an investment bank. It offers asset management and real estate banking. Mitsubishi UFJ Financial Group has assets worth $2.459 trillion.

Assets for the bank total $2,901.34 billion. State Street Corp. increased its holdings in this bank by 18.6%. This is the second largest public company in Japan. The stock trades at $6.92 as of this writing, Analysts have placed a target price of $7.48 per share.  It pays a dividend of 2.63%.

Mitsubishi UFJ Financial Group

Website: https://www.mufg.jp

Address of headquarters:

7-1, Marunouchi 2-Chome, Chiyoda-ku, Tokyo, Japan

I. Bank of America (BAC)

This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation, offer or solicitation for the purchase or sale of any security, financial instrument, or strategy. Before acting on any information in this material, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only correct as of the stated date of their issue.

Bank of America (BAC)

Website: https://www.bankofamerica.com/

J. Credit Agricole Group

This is the second French bank on the list. It has assets of $1.91 trillion. This bank has a history of working with farmers. It is part of a network of 39 French banks.

The bank raised its holding in the DEO group by 87.6% as of April 20, 2017. It also invested in Coca-Cola (KO), Exxon Mobile (XOM), and Abercrombie and Fitch.

In February of 2017, the company reported it had a 67% drop in its fourth-quarter profits due to mortgage refinancing by its customers. However, revenues rose by 7%. Forbes ranks the company as one of the world’s top 20 most sustainable companies.

Why this Bank Top, Read Details….

1. Industrial & Commercial Bank of China

This is the largest bank in the world when measured by assets. It has $3.62 trillion in total assets. The bank’s revenues come in at $134.8 billion. Measured by revenues, this is the fourth largest bank in the world.

Though this is a commercial bank, it is state-owned. The bank provides loans, financing for businesses, credit cards, as well as money management for high-net-worth individuals and companies. The bank also offers money market vehicles, investing opportunities and exchange and transfer services.

A bank spokesman says that President Trump’s insistence that U.S. companies stop manufacturing in Mexico could be an opportunity for the Chinese bank. It plans to invest in Mexico as U.S. firms pull out.

2. China Construction Bank Corp.

This is the second Chinese bank on our top 10 list. It offers corporate banking, which deals with credit, company e-banking, credit lines and commercial loans. The personal banking segment offers personal loans, credit cards, deposits and wealth management for individual investors.

The bank also operates a Treasury sector that deals with money markets, debt securities, and currencies. The China Construction Bank has assets of $2.94 trillion.

On March 29, 2017, the bank announced that its profits have risen by 2.8% during the fourth quarter. The bank expects its profit margins to shrink in 2017, and plans to improve pricing on loans.

3. Agricultural Bank of China

This Beijing bank has branches across China, plus London, Tokyo, New York and Sydney, Australia. Not only is it the third-largest bank on our list, but it is also one of the 10 largest companies in the world. Agricultural Bank of China is state-owned.

The bank deals with small farmers and large agricultural wholesale companies. It also works with non-agricultural companies. Its largest growth segment is mid-sized companies. The bank has assets of $2.82 trillion.

The bank reported a fourth-quarter increase in profits of 1.8%, even though its profit margins have been shrinking. Profits in U.S. dollars was $ $26.7 billion.

4. Bank of China

The Bank of China offers investment banking, insurance and investing services. It also provides personal loans, credit card services, debit cards, mortgages, asset and liability management and insurance. Assets total $2.63 trillion.

In April of 2017, the bank sold bonds denominated in four currencies. The sale took place on one day and resulted in $3 billion in capital for the bank. In its latest profit report, the Bank of China reported a 3.7% drop.

5. HSBC Holdings (HSBC)

This is a bank based in England. The bank has offices in 80 countries, and has 1,800 locations in the U.K. It provides private banking and consumer finance, along with corporate banking and investment services. HSBC has $2.57 trillion in assets.

6. JPMorgan Chase & Co. (JPM)

This is the first bank on the list that is based in the United States. It is based in New York, but it is a multinational bank.

Though it is ranked sixth-largest in the world, it is the largest bank in the United States. It is involved in investment services, asset management, wealth management and securities. Assets total $2.45 trillion.

As of April 23, 2017, Shepherd Financial Partners has purchased 51,950 shares of JP Morgan stock worth $3,128,000. The analyst consensus for a one-year target price is $91.35 per share. The stock currently trades at $84.52.

7. BNP Paribas

This French bank has assets of $2.4 trillion. It has offices in 75 countries, including the United States. This bank was ranked second among banks in the euro zone in 2016.

The analyst consensus on the stock of BNP Paribas is a “buy.” The bank is merging its research teams and expects to cut some analyst jobs in 2017.

The company announced on April 5, 2017 that it had sold its shares in the Dakota Pipeline. The sale was worth $120 million.

8. Mitsubishi UFJ Financial Group

This is a Japanese bank that offers consumer banking, as well as business and private banking. This is also an investment bank. It offers asset management and real estate banking. Mitsubishi UFJ Financial Group has assets worth $2.459 trillion.

Assets for the bank total $2,901.34 billion. State Street Corp. increased its holdings in this bank by 18.6%. This is the second largest public company in Japan. The stock trades at $6.92 as of this writing, Analysts have placed a target price of $7.48 per share.  It pays a dividend of 2.63%.

9. Bank of America (BAC)

Bank of America is a U.S. bank that offers services for personal banking, small businesses, mid-sized businesses, and large corporations. It offers investment services in addition to its deposit and checking accounts. The bank has nearly 5,000 retail outlets, with assets topping $2.15 trillion.

The stock currently trades at $22.71 and has a one-year target price of $ 25.63. It pays a dividend of 1.32%. The bank’s revenues have dropped slightly over the past three years. On April 18, 2017, the bank reported a 46% rise in earnings per share.

Bank of America has begun pursuing small businesses and is making more loan money available to them. Its small business program includes putting staff in We Work offices where small businesses operate.

10. Credit Agricole Group

This is the second French bank on the list. It has assets of $1.91 trillion. This bank has a history of working with farmers. It is part of a network of 39 French banks.

The bank raised its holding in the DEO group by 87.6% as of April 20, 2017. It also invested in Coca-Cola (KO), Exxon Mobile (XOM), and Abercrombie and Fitch.

In February of 2017, the company reported it had a 67% drop in its fourth-quarter profits due to mortgage refinancing by its customers. However, revenues rose by 7%. Forbes ranks the company as one of the world’s top 20 most sustainable companies.

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