10 Biggest Banks in the World (*With a Footnote)

SNL Financial released its first ranking of 100 biggest banks, but noted that respective accounting regimes affected placement

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.

 10 Biggest Banks in the World

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

Effect of U.S. GAAP Netting/Offsetting Treatment 



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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