Top ten global banks: An analysis of financial performance, growth opportunities and risks

This report examines the strategies being adopted by, the opportunities for, and the risks facing, the ten largest banks in the world. It provides a detailed analysis of the top five's financial performance. It outlines key industry trends including capital adequacy, the rise of China's banks, regulatory action, changing banking technology, and the push for expansion beyond domestic boundaries.

Scope

  • Learn which are the ten largest banks in the world.
  • Analyzes key banking industry trends and how the largest players are adapting to them.
  • Offers a detailed analysis of the top five's recent financial performance and presents the financials of the next five in an easy to interpret format.
  • Assesses the risks facing the world's largest banks and looks at what they are doing to manage them.

Reasons to buy

Which are the world's ten largest banks as measured by total assets?

How are the world's ten largest banks performing financially?

What are the opportunities and threats facing the world's ten largest banks?

What expansion strategies are the world's ten largest banks employing?

What steps are the world's ten largest banks taking to manage risk?

Companies mentioned

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Table of Contents

Executive Summary

Industrial and Commercial Bank of China Limited (ICBC)

China Construction Bank Corporation

HSBC Holdings plc

Agricultural Bank of China Limited

JPMorgan Chase & ...

Executive Summary

Industrial and Commercial Bank of China Limited (ICBC)

China Construction Bank Corporation

HSBC Holdings plc

Agricultural Bank of China Limited

JPMorgan Chase & Co.

BNP Paribas SA

Bank of China Limited

Mitsubishi UFJ Financial Group Inc.

Credit Agricole Group

Barclays PLC

OVERVIEW

Catalyst

TOP TEN GLOBAL BANKS: THE RANKINGS

Table 1 below shows the top ten global banks as ranked by total assets as of December 31, 2014.

BANKING INDUSTRY TRENDS

The bullet points below outline a number of key industry trends

INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED (ICBC)

Overview

ICBC: Financial Performance

Growth Opportunities

Particular potential for residential mortgages and bank cards

ICBC looking to grow global footprint

Cost control delivers profit growth

Risk factors and risk management

China's new normal: slower growth and structural change

NPL rates increasing

Needs to reduce unsecured debt

Overseas expansion is fraught with risk

CHINA CONSTRUCTION BANK CORPORATION

Overview

CCB: Financial Performance

Growth Opportunities

Particular potential for residential mortgages and bank cards

Mobile and internet banking offer great growth prospects for CCB

CCB looking to grow global footprint

Risk factors and risk management

China's new normal: CCB will not escape potential effects

NPL rates on the rise

Large amount of unsecured debt

Large exposure to Chinese Yuan

Overseas expansion is fraught with risk

HSBC HOLDINGS PLC

Overview

HSBC: Financial Performance

Financial performance varies from region to region

Financial performance by division

Regulatory and compliance costs hit hard

Growth Opportunities

Asia, North America, Middle East & North Africa all increasingly profitable

Commercial banking a major growth area

Growing deposits can reduce interest expense

Payment activity and Chinese Yuan products provide exciting prospects

Risk factors and risk management

Uncertainty over UK exit linked to bank levy

UK's continued EU membership far from certain

Expensive regulatory fines and settlements

AGRICULTURAL BANK OF CHINA LIMITED

Overview

ABC: Financial Performance

Growth Opportunities

Strong growth potential for mortgages and bank cards

Internet banking is a key area of focus for ABC

Growing its wealth management offering

ABC has scope to grow very limited global footprint

Risk factors and risk management

China's new normal: ABC vulnerable due to dependence on Chinese market

NPL rates increasing

Less unsecured debt than rivals

JPMORGAN CHASE & CO.

Overview

JPMorgan: Financial Performance

Financial performance by division

Cost savings by headcount reduction

Growth Opportunities

Retail e-banking offering is booming

Cards Services outperforming the industry

Customer satisfaction scores to entice new customers in commercial banking space

Becoming a major player in retail deposits

Growth of the Chase Private Client brand

Risk factors and risk management

Reliance on investment banking in developed markets

Continued need for provisions affects profitability

JPMorgan must learn lessons from regulatory action and settlements

Cyber threats are very real and JPMorgan has already suffered

BNP PARIBAS SA

Overview

BNP Paribas: Key financial metrics

BNP Paribas: Opportunities and risks

New business ventures overseas

Great scope for growth within electronic and mobile banking

Acquisitions aid overseas expansion

Targeting asset management growth in Asia

Strong export growth grants trade finance opportunities

Weak macroeconomic conditions in Europe pose continued risk

Legislative and regulatory changes creating uncertainty

BANK OF CHINA LIMITED

Overview

Bank of China: Key financial metrics

Bank of China: Opportunities and risks

China's growth brings inherent opportunities

Electronic and mobile banking booming

Not reliant on one operational area for growth

Loans and deposits increasing

Concentration in East Asia is a risk

High exposure to Chinese Yuan leaves BOC vulnerable to currency shock

NPL rates increasing as China adjusts to 'new normal'

MITSUBISHI UFJ FINANCIAL GROUP, INC.

Overview

Mitsubishi UFJ: Key financial metrics

Mitsubishi UFJ: Opportunities and risks

Great scope for overseas expansion, particularly in Asia

Bank cards a real growth possibility

High exposure to the Japanese economy

MUFG's US business is performing poorly

Poor non-interest income trend

CREDIT AGRICOLE GROUP

Overview

Credit Agricole: Key financial metrics

Credit Agricole: Opportunities and risks

Overseas expansion via M&A and widening existing offerings

Improved capital base reduces interest expense

IT cost savings can boost profits

Sizeable exposure in politically unstable territories

Dependence on slow French economy

Regulatory changes could diminish government support for SIBs

BARCLAYS PLC

Overview

Barclays: Key financial metrics

Barclays: Opportunities and risks

Strong mobile offering provides growth platform

Build on established presence in Africa

UK Government Funding for Lending Scheme likely to boost business

Barclaycard adding new customers at impressive rate

Credit risk concentration in mature markets

UK set to hold referendum on EU membership

High exposure to UK home loans puts bank of risk of a property bubble

APPENDIX

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