Asian banks see market cap value jump in Q2: study

Of the 25 global banks included in the report 13 are headquartered in Asia.

A report showed that the combined market capitalization (MCap) of the top 25 global banks increased by 3.8% to $3.3t in the second quarter of 2023, according to GlobalData.

Of the 25 banks included in the report, 13 are headquartered in Asia.

The bank with the largest market cap in Asia is ICBC with $239.4b. This was followed by Agricultural Bank of China ($167.5b), and Bank of China ($166.2b).

ICBC, Bank of China, and Agricultural Bank of China saw MCap gains ranging from 2% to 8%, while China Construction Bank experienced a 0.2% decrease in MCap. 

According to GlobalData, these four banks posted positive Q1 2023 results, reflecting the revival of the Chinese economy in the same period.

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The list goes on with China Construction Bank ($163.8b), HSBC Holdings ($155.4b), HDFC Bank ($115.9b), China Merchants Bank ($114.0b), Mitsubishi UFJ ($93.3b), ICICI Bank ($79.6b), BNP Paribas ($77.4b), Bank Central Asia ($74.5b), Postal Savings Bank of China ($65.7b).

Mitsubishi UFJ’s MCap pivoted on its strong 2023 results on earnings, whilst HSBC also registered good revenue results in the first three months of the year.

This growth suggests a potential market recovery and improved inflation control.

“In the upcoming quarters, there is a potential for a modest recovery in the global banking sector. Contributing factors include a potential pause in interest rate hikes by policymakers and a smaller-than-expected expansion of net interest margins. Additionally, lower volumes of lending and credit transactions are anticipated due to tighter credit conditions.” Murthy Grandhi, Company Profiles Analyst at GlobalData commented.