What are the richest banks in the World? Money comes and goes, yet it always tends to end up in the same place: a bank account. The banking system is not only an essential attribute of any modern economy, it is also a great way to make money. Of course you don’t need to found a bank in order to take advantage of interest rates on deposited cash, not to speak of taking advantages of all the services this industry has to offer.
In a recent article we took a look at the top 10 highest paid CEOs in 2014, yet contrary to popular belief, not a single one was employed by a bank or financial corporation. Nonetheless, due to their significant influence and the large portions of capital they manage, inspecting the 10 richest banks in the world further might just be worthwhile. After all, money comes in and out of these institutions, yet most people have little knowledge concerning the actual value of banks. This comes as little surprise, concerning the amount of numbers involved, as well as the rather boring nature of the enterprise.
Considering the complexity of the accounting involved, the following list is determined by market capitalization. This evades the problem of dealing with the different accounting methods implemented by various banks, letting the stock market determine which companies are worth the most in this industry. Previously we also covered the list of 20 biggest banks in the World.
10. Bank of China
The Bank of China was born in 1912 due to the necessity of replacing the Imperial Bank of China. In 2014 it is more active than ever, with revenue hitting the $105 billion mark and total market capitalization reaching $115.9 billion.
9. Agricultural Bank of China
Another Chinese firm has joined the ranks of the top 10 richest banks in the world, in what is a clear demonstration of China’s economic growth over the past two decades. The Agricultural Bank of China caters to 320 million retail customers, growing notably since its IPO bank in 2010.
8. Commonwealth Bank of Australia
Next up on our list is the Commonwealth Bank of Austria with a market capitalization of $131.5 billion. This multinational bank was founded in 1911 and has since evolved into one of the four major banks in Australia, offering services such as mortgage insurance.
7. Citigroup
The first American bank to make the list is Citigroup, which boasts a market value of $144.6 billion. Despite hitting hard times back in 2008 during the financial crisis, the bank managed to get back on track and is currently hoarding cash like never before.
6. China Construction Bank
Coming in sixth is the China Construction Bank, with a market capitalization of $160.8 billion. This company not only managed to become the second-largest bank in China, but is growing steadily, with net profits rising by double digit percentages.
5. Bank of America
Bank of America is not only a firm valued at $181.7 billion, it is also ranks 21st amongst the companies with the highest total revenue in the USA. Like Citigroup, Bank of America has hit hard by the financial crisis of 2008, yet it still managed to make the top 5!
4. HSBC Holdings
The first European bank on our list is HSBC, with a market capitalization of $191.4 billion and assets valued at over $2.671 trillion. Its 125 million customers are serviced by the 7,000 branches HSBC has across the globe, allowing the firm to elude financial complications stemming from cyclical economic factors.
3. Industrial and Commercial Bank of China
The last Chinese firm on our list not only makes the top 3, but is also ranked first amongst its peers in China. Total assets topple the $3 trillion mark and with net profits soaring to $42.3 billion in 2013, the Industrial and Commercial Bank of China has reached a market capitalization of $196.2 billion.
2. JPMorgan Chase
Following the 2000 merger between Chase Manhattan Corporation and JPMorgan & Co, this new firm was created with one sole purpose: to make money. As the largest bank in the USA, it has surely achieved this feat, and its market value which exceeds $229.9 billion has left it in second spot on a global scale.
1. Wells Fargo
The richest bank in the world is Wells Fargo, with a market capitalization of $261.7 billion. Despite not being the largest bank in the USA, and not even making the global top 20 based on assets, Wells Fargo goes to show that numbers make a difference. At least in the mind of investors active on Wall Street, this is where your money should be!
