The
ranking released by The Banker magazine on Wednesday was topped by the
four Chinese banks – Industrial and Commercial Bank of China, China
Construction Bank, Agricultural Bank of China and Bank of China – with JPMorgan
Chase following in fifth place.
In total, Chinese banks made up seven of the top 10 in the
ranking, which lists global banks in terms of tier-one capital size. All seven
of them are controlled by the Chinese government.
Postal Savings Bank of China broke into the top 10 for the
first time, while US giants Bank of America and Citigroup ranked sixth and
eighth, respectively.
Chinese
banks collectively held US$54.8 trillion in total assets, more than double the
US$25 trillion held by US banks in the ranking, data showed.
However, the race is not only about size, as US banks
continue to hold the advantage in terms of profitability.
Chinese banks in the top 1,000 ranking reported combined
pre-tax profits of US$392 billion, compared with US$328 billion for US banks.
The publication noted that American lenders maintained a
clear lead in profitability performance, while European banks recorded stronger
earnings growth after a relatively weak previous year.
The
expansion of China’s banks is closely linked to Beijing’s broader financial
ambitions: increasing the global role of the yuan, developing alternative
cross-border financing channels and extending China’s influence through
overseas banking operations.
Silvia Pavoni, editor-in-chief of The Banker, said Chinese
banks’ international expansion and efforts to promote yuan internationalization
would become increasingly important drivers of future growth and profitability.
“China’s largest banks continue to underpin their
dominance,” Pavoni said, adding that the scale and resilience of the country’s
banking sector remained significant as the global economy faced uncertainty and
geopolitical challenges.
