A new industry ranking published by The Banker’s indicates that JPMorgan, one of the oldest banks around, as the world’s strongest bank. The ranking, which is done annually, ranks banking institutions based on capital strength, also referring to the amount of Tier 1 capital held.
Despite facing tough economic challenges, another three major banks – Bank of America, Citigroup and Royal Bank of Scotland (RBS) came second, third and fourth respectively.
Last year, the same list ranked HSBC as the strongest bank, but this year, it plunged down to fifth place. However, among the top five, HSBC is the only one who did not obtain help from the government during the financial pressure in the recent years.
JPMorgan (JPMorgan Chase & Co), is the global leader in financial services with a total asset worth $2.3 trillion. It is also the largest deposit base and market capitalization for any US banking establishment. The JPMorgan Chase & Co was established in 2000 when JPMorgan & Co. was acquired by the Manhattan Corporation.
Alongside Bank of America, Citigroup and Wells Fargo, JPMorgan belong to the Big Four Banks in the United States, referring to the biggest banking institutions around in the country.
In terms of profitability, the top 5 most profitable banks are dominated by banks from China and Spain. The ICBC (Industrial and Commercial Bank of China) ranks first with earnings in excess of US$20 billion last year. China Construction Bank ranked second, while another Chinese bank, Bank of China is fourth. Spain’s Santander and BBVA banks were third and fifth respectively.