Which are the largest banks in the world? That depends on what their accounting regimes are.
SNL Financial on Thursday released its first ranking of the 100 biggest banks in the world. No U.S. bank appeared among the five largest.
SNL explained that it had ranked the banks based on the assets they report under their respective accounting regimes. The top four banks, and eight of the top 10, report under International Financial Reporting Standards, accounting standards developed by the International Accounting Standards Board.
U.S. institutions, on the other hand, report under GAAP (generally accepted accounting principles), commonly followed accounting rules and standards for financial reporting.
SNL said that some U.S. banks would rank much higher if their assets were adjusted for the netting of derivatives, which is allowed under GAAP but is not permitted under IFRS.
Japanese banks also report under GAAP principles, though these differ in various ways from the U.S. rules and standards.
For its ranking, SNL used the most recently reported consolidated assets of companies it classified as “banks” or “savings banks/thrifts/mutual” that are regulated in the U.S. as bank holding companies, or any financial holding company with significant banking subsidiaries.
SNL said it had not included some institutions in the ranking because of the nature of their business model.
The ranking comprises 15 banks in North America, four in South America, 47 in Europe including Russia, 30 in Asia and four in Australia. Africa did not have banks in the top 100.
Following are the official top 10 banks, according to SNL, plus an adjusted ranking that takes into account the effect of U.S. GAAP netting/offsetting treatment.
Rank
Company
Country
Accounting Principle
Total Assets
1.
Industrial & Commercial Bank of China
China
IFRS
$3.06T
2.
HSBC Holdings
U.K.
IFRS
$2.72T
3.
Crédit Agricole Group
France
IFRS
$2.62T
4.
BNP Paribas
France
IFRS
$2.51T
5.
Mitsubishi UFJ Financial Group
Japan
Japanese GAAP
$2.47T
6.
JPMorgan Chase
U.S.
U.S. GAAP
$2.46T
7.
China Construction Bank
China
IFRS
$2.45T
8.
Deutsche Bank
Germany
IFRS
$2.42T
9.
Agricultural Bank of China
China
IFRS
$2.39T
10.
Barclays
U.K.
IFRS
$2.27T
Reported
Adjusted
Company
Global Top 100 Ranking
Total Assets
Derivative Assets, Netting/Offsetting
Ranking
Total Assets
JPMorgan Chase
6
$2.46T
$1.21T
1
$3.68T
Bank of America
12
$2.13T
$937B
2
$3.06T
Citigroup
14
$1.90T
$794B
5
$2.69T
Wells Fargo
21
$1.49T
$55B
22
$1.54T
Credit Suisse Group
26
$990B
$654B
18
$1.64T
Goldman Sachs
28
$923B
$582B
24
$1.51T
Morgan Stanley
34
$832B
$735B
20
$1.57T
Nomura Holdings
61
$427B
$243B
43
$670B
Bank of NY Mellon
72
$372B
$16B
69
$388B
U.S. Bancorp
74
$361B
$570M
73
$361B
PNC Financial Services Group
82
$309B
$3.1B
81
$312B
Capital One Financial
85
$290B
0
85
$290B
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