Bank atlas 2002: Banks focus on cost
Deutsche and HypoVereinsbank are the biggest risers in the latest bank rankings by shareholders' equity. Fewer mergers make the size rankings stable. Unfortunately banks' earnings have been anything but.
Bank atlas 250 - results tables:
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Last year was a rotten one for most banks, as corporate lending, equity underwriting and merger activity sagged. Fifteen of the top 20 banks saw profits fall year on year, 10 of these by double-digit amounts. Net income fell for 30 out of the 42 largest US firms in the table; for 32 out of 41 Japanese, and all but one of the 16 Italian financial groups indicated. With revenue growth in trouble, banks are looking to pare costs - for which read redundancies.
Following the Bank Austria acquisition, HypoVereinsbank rockets up the rankings of largest banks by shareholders' equity to ninth place. Deutsche is now contesting fifth place with JPMorgan Chase but takes a big hit on profits as provisions against the third-quarter losses of DaimlerChrysler.
For the third year in a row Citigroup is the largest bank in the world, as measured by shareholders' equity. It is also one of the most profitable, with a cracking $14.1 billion net income in 2001, up 4% on 2000 and more than the combined profits of the next two most profitable banks - Bank of America and HSBC.