Chinese banks make up nearly 40% of the world’s top 20 banks in terms of net interest income (NII) in this year’s Top 1000 World Banks ranking.
Philip Alexander reports on the full results of The Banker’s Top 1000 World Banks ranking 2014, in the story Top 1000 World Banks 2014: Back on track?
NII, the highest income generator in banking by far, has increased by 2.7% among the top 20 banks, from $703.78bn in 2013 in 2013 to $722.35bn in 2014, largely driven by growth in Chinese banks. Industrial and Commercial Bank of China (ICBC) has recorded $72.65bn in income from net interest, up $6.23bn from 2013's ranking. All six Chinese banks have increased their net interest income, while away from China only Bank of America, Sberbank and Barclays have managed the same.
Data from Postal Savings Bank of China is included for the first time, with the bank entering the NII ranking in 14th position with $22.78bn.
But China's story is also strong in terms of income from fees and commissions: fee income at all four Chinese banks in the top 20 has risen significantly by between 15% and 21%, and 2014’s highest ranked global bank, ICBC, has moved up from sixth to fourth place. China’s share of the top 20 fee and commission income has increased from 16.9% in 2013's ranking to 18.2% this year.
Bank of America, last year’s top bank on fees and commissions, is one of only two institutions in the top 20 ranking to see its fee and commission income fall compared with last year. It has dropped by $439m to $31.95bn. The new number one, JPMorgan, has increased its fee and commission income by about 13% to $33.11bn.
Banco Santander has fallen from 12th to 16th place in terms of fee and commission income. It and Bank of America are the only banks with a year-on-year decrease in fee and commission income.
The most significant change in trading income is seen at Deutsche Bank, which has fallen from third to 11th. The top two, Goldman Sachs and JPMorgan, keep their places with $266m and $2.17bn improvements, respectively.
