Bank of China, which held the top spot last year, has just raised $9.7bn in its IPO last month – the largest offering in the world in six years – and may well recover the first place billing it held last year with $34.6bn. Another portion of capital raising is due in July on the mainland.
Bank of China’s share price rose 15% on the first day of trading in comparison with CCB’s, which closed unchanged in its debut, amid general economic concerns, but then went on to grow by 40%.
The other contender for number one is Industrial and Commercial Bank of China (ICBC), currently in second place. The bank’s IPO has been delayed but is expected to raise $12bn when it comes to market in October. In January, Goldman Sachs, American Express and Germany’s Allianz agreed to invest $3.78bn in the bank. Even without the IPO, ICBC’s Tier 1 capital rose from $20.2bn last year to $31.7bn this year.
Agricultural Bank of China in contrast, the other member of the big four and the only one yet to undergo restructuring, slipped down the table from fourth to eighth accompanied by a loss of capital of $6.8bn. Expect further significant developments in the position of the big Chinese banks in the months ahead.
The other two China players in the listing are Bank of Communications, which climbed four places to 10th position (the bank did an IPO last year and has HSBC among its major investors), and China Merchant Bank, which enters at number 25.
As always, the other key players in the Asia Top 25 are the Australian and South Korean banks. Kookmin Bank of South Korea leaps to fifth position from eighth on the back of a capital increase from $7.8bn to $11.6bn. National Australia Bank remains as the premier bank from its country, improving its Asia ranking from fifth to fourth.
Overall, the 163 Asian banks account for a 13.5% share of the Tier 1 capital in the Top 1000, 11.9% of assets and 12.4% of profits.
