Published Date : Jun 30, 2014
The top banks in China accounted for nearly one-third of the total profits made by the top 1000 banks in the world in 2013. The total profits amount to USD 920 billion in 2013. This indicates the rising power that Chinese lenders now enjoy in the global financial sector, especially since the 2008 recession affected banking operations in the developed world.
Figures show that banks from China made a total pretax profit of USD 292 billion in 2013 – this amounts to 32% of the total industry earnings worldwide. These figures were stated in the annual profit ranking published by The Banker magazine.
In 2013, the global profits of the banking sector rose by 23% as compared to the previous year. This figure marks the highest-ever rise till date. The highest profits were reported by the Industrial and Commercial Bank of China (ICBC) at USD 55 billion. The top four positions were all Chinese entities – including names such as the Agriculture Bank of China, the country’s premier banking entity, the Bank of China, as well as the China Construction Bank.
In the United States, banks reportedly earned aggregated profits to the tune of USD 183 billion. This marks a 20% share of the global total. The leader in the U.S. market was Wells Fargo, with earnings of USD 32 billion.
And, in the Eurozone, the contribution of banks was just 3% of the global total. The contrast is striking considering that this zone accounted for 25% of the global total prior to the economic recession of 2008. The study further showed that Italian banks lost as much as USD 35 billion in 2013, making it the worst performance among all countries included in its report.
Japanese banks reported USD 64 billion in profits in 2013, which translated to a 7% share in the global context.