CBA top Aussie bank by market cap

New figures from GlobalData revealed the Commonwealth Bank of Australia (CBA) was the highest-ranking Australian bank by global market capitalisation, accounting for US$111.8 billion.

Ranking 12^th on GlobalData’s list of the top 25 banks by aggregate market capitalisation, CBA was also the only Australian bank to feature.

A combination of American and Chinese banks dominated the ranking, with JPMorgan Chase at the top for its fifth quarter in a row, after seeing 10.8 per cent growth from Q1 to Q2 2023 and now with US$425 billion in market value.

China’s ICBC followed in second with 1.8 per cent quarter-on-quarter (QoQ) growth and US$239.4 billion in market capitalisation, with Bank of America next in third after seeing a 0.1 per cent QoQ decline to US$228.6 billion in market value.

Three Chinese banks (Agricultural Bank of China, Bank of China and China Construction Bank), two American banks, one British bank and one Canadian bank rounded out the top ten on GlobalData’s list, with a total market capitalisation of US$1.088 trillion.

“The Federal Reserve’s decision to pause the interest rate hike in June was seen by investors as a sign that the central bank is not as concerned about inflation as it was previously,” Murthy Grandhi, Company Profiles Analyst at GlobalData, said.

“This, along with signs of US inflation cooling, a brighter outlook for the Euro zone economy, and China’s stronger-than-expected economic recovery, boosted investor sentiment.”

Japan-based financial services company, Mitsubishi UFJ Financial Group, saw the highest QoQ market cap increase of 15.1 per cent after investors saw positive 2023 results, strong earnings estimates and a rating upgrade.

“In the upcoming quarters, there is a potential for a modest recovery in the global banking sector,” Grandhi said.

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.”