The top two banks in the world, ICBC and China Construction Bank, are Chinese with two further Chinese banks ranked in the top ten. China also now accounts for one third of all banking profits, driving global banking profits to an all-time high of $920 billion.
In the face of greater regulation, economic challenges and competition, UK banks now account for only 2.37% of global profits (and one thirteenth of China’s profits), down from 11% before the 2008 financial crisis. The only British bank left in the top 10, HSBC, slipped further from 4th place to 5th place this year. Back in 2008 HSBC topped the ranking with RBS in third place.
However, the UK’s economic recovery has seen its banking sector outperform much of Europe, which continues to struggle. Italian banks lost $35bn, more than any other country, with Portuguese and Irish banks also seeing heavy losses.
Scottish Independence
The Banker’s Top 1000 World Banks ranking also demonstrates how a Yes vote in the September referendum could see an independent Scotland’s economy in danger of being destabilised by its own banking sector.
Currently UK banks have a total of $9.9 trillion in assets, roughly four times UK GDP. However, if Scotland left and became responsible for Scottish headquartered banks such as RBS, HBOS and Clydesdale, it would have banking assets of 12 times Scottish GDP.
This would be even larger than the 10:1 ratio that proved so ruinous for Iceland, and presents a significant risk for the country’s economic stability.
Editor of The Banker, Brian Caplen, said: “Had it been independent during the financial crisis, there is little doubt that an independent Scotland would have been devastated and forced to turn to the IMF for help. The temptation in future under independence would be to give Edinburgh light touch regulation to make it more competitive as a financial centre. This might have serious consequences.”
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Press release downloads:
Top five UK banks
Top 10 global banks ranked by Tier 1 Capital
Top 10 banking profits by Country
For further information please contact:
FT:
Sin Yee Hon
Communications Executive
T: 020 7873 3811
Launch PR:
Joseph Potts
T: +44 (0)20 7758 3918
M: 07818 050 232
Email: josephp@launchpr.co.uk
About The Banker:
The Banker is the world's premier banking and finance resource, providing global financial intelligence since 1926.
The Banker is the key source of data and analysis for the industry. The Banker’s Top 1000 World Banks ranking has been setting the industry benchmark since 1970, providing comprehensive intelligence about the health and wealth of the banking sector. To find out more visit www.thebanker.com/top1000worldbanks.
Brian Caplen has been a financial and business journalist for more than 25 years He has worked in Hong Kong and the Middle East and reported from all over the world. He joined The Banker in 2000 and became editor in 2003.
About The Banker Database:
The Banker Database provides comprehensive financial data, news feeds and executive contact data on the leading banks in every country. Our data has been standardised for regional reporting and regulatory variations, and forms the basis of The Banker's monthly bank rankings.
Over the past five decades our rankings have become the industry standard for measuring bank performance and strength. The database tracks banks in more than 190 jurisdictions representing 90% of the world’s total banking assets. To find out more about The Banker Database visit www.thebankerdatabase.com.
About the Financial Times:
The Financial Times, one of the world’s leading business news organisations, is recognised internationally for its authority, integrity and accuracy. Providing essential news, comment, data and analysis for the global business community, the FT has a combined paid print and digital circulation of 665,000 (Deloitte assured, Q1, 2014). Mobile is an increasingly important channel for the FT, driving 60 per cent of subscriber consumption, 45 per cent of total traffic and 20 per cent of new digital subscriptions. FT education products now serve 37 of the world’s top 50 business schools.
