International Finance
Iriszz
9.InternationalDebtMarkets-Streamlined.pptxInternational Debt Markets & Banking
International Finance
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Learning Objectives
Examine the creation and function of Eurocurrencies and Eurobanks
Understand the construction of LIBOR and its use
Analyze international bank lending instruments
Analyze international note instruments
Analyze international bonds and differentiate between Eurobonds and foreign bonds
Decide between an issuance of international and domestic debt for a MNE
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Sources of Finance Around the World
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| Equity | Bond | Loan | |
| United States | 45.0% | 45.9% | 9.1% |
| Euroland | 23.4% | 26.8% | 49.8% |
| Japan | 24.8% | 43.6% | 31.6% |
BIS Data
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International Debt Finance
There are three major sources of debt funding on the international markets:
International Bank Loans
International Short- and Medium-Term Note Markets
International Bond Markets
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Eurocurrency
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The Eurocurrency Markets
The Eurocurrency markets are one of the truly significant innovations in international finance of the past 50 years.
These markets have provided a foundation for a series of innovations in both the structure of and choices in financing the MNE
Eurocurrencies are domestic currencies of one country on deposit in another country. Their value is identical to that of the same currency “at home”
For example, a Eurodollar is a US dollar denominated deposit in a bank outside the US
The bank may be a foreign bank, the overseas branch of a US bank, or an International Banking Facility (IBF) of a bank operating in the US
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https://www.everbank.com/currencies
https://www.eastwestbank.com/Views/Pages/personal/global-banking/foreign-currency-accounts.cshtml
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Eurocurrency deposits usually have a fixed maturity that may range from one day to five years and pay interest
They are time deposits with a penalty for early withdrawal
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Any convertible currency can exist in “Euro” form (not to be confused with the European currency called the euro)
Eurodollars
Eurosterling
Euroyen
Euroeuros !!!
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The name “Euro” comes from the fact that it was European banks that first took these deposits
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Eurobanks
A Eurobank is a financial intermediary that simultaneously bids for time deposits and makes loans in a foreign currency—a currency other than that of the country in which the bank is legally located
These markets serve two valuable purposes:
Eurocurrency deposits are an efficient and convenient money market device for holding excess corporate liquidity
The Eurocurrency market is a major source of short-term bank loans to finance corporate working capital needs (including imports and exports)
International bank loans have traditionally been sourced in the Eurocurrency markets
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Why did the Eurocurrency markets form?
Like many offshore markets, this market came into existence in response to regulation
When regulations restricted the maximum interest rates US banks could pay on deposits (Regulation Q*), foreign banks and foreign branches of US banks began taking deposits in US$ and the Eurodollar (Eurocurrency for the dollar) market was born
In addition, the Soviet Union chose to place its hard currency dollars in European banks instead of US banks for fear that the US would confiscate Soviet assets
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*From 1933 until 2011, Regulation Q prohibited banks from paying interest on demand deposits. From 1933 until 1986 it also imposed maximum rates of interest on various other types of bank deposits, such as savings accounts and NOW accounts. Regulation Q no longer exists.
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International Bank Lending
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International Bank Lending
Global cross-border (external) assets of banks currently total $27.65 T of which:
$18.69 T are loans or deposits (at other banks)
$ 5.94 T are securities and other instruments
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http://www.bis.org/statistics/bankstatsguide.htm
http://www.bis.org/statistics/bankstats.htm
http://www.bis.org/statistics/r_qa1409_hanx5a.pdf
http://www.bis.org/statistics/r_qa1409_hanx1.pdf
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http://www.bis.org/publ/qtrpdf/r_qt1706.pdf
Cross-border Bank Assets $Trillion (June 2017)
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http://www.bis.org/publ/qtrpdf/r_qt1706.pdf
Cross-border Bank Assets $Trillion (June 2017)
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Forbes International Bank Rankings
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Eurocurrency credits or Eurocredits are bank loans to MNEs, sovereign governments, international institutions, and banks
They are denominated in Eurocurrencies and extended by banks in countries other than the country in whose currency the loan is denominated
That is, Eurocredits are in a currency outside the jurisdiction of the central bank of the bank extending the credit
Maturities of 3 to 10 years
The interest rate is typically floating
Banks set the interest rates on these loans based on the prevailing London Interbank Offered Rate (LIBOR) plus a spread
The rates are usually reset every 3-6 months based on the new LIBOR rate
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Syndication of Neste Oil´s 1.5 billion euro credit facility completed
Press Release 18 May 2005
Neste Oil completed yesterday the syndication of its EUR 1.5 billion 5-year revolving credit facility with two one-year extension options after year one and year two. All 20 banks, who were originally invited, decided to participate in the transaction.
Mandated Lead Arrangers were Barclays Capital, BNP Paribas, Citigroup, Nordea and SEB.
Neste Oil Corporation is a leading independent northern European oil refining and marketing company focused on high-quality traffic fuels and other high value-added petroleum products with reduced environmental impact
Neste Oil was incorporated by means of a demerger of Fortum Oil and Gas Oy, a wholly-owned subsidiary of Fortum, effected in accordance with Finnish Law (the “Demerger”). Neste Oil's shares were first quoted on the Helsinki Stock Exchange on 18 April 2005.
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The syndication of loans has enabled banks to spread the risk of very large loans among a number of banks
This is significant for MNEs as they usually need credit in an amount larger than a single bank’s loan limit
Eurocurrency syndicated loans sometimes exceed $10B and $1B loans are quite common (John Graham and Scott Smart)
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Example: Citibank offers to syndicate a Eurodollar credit term loan for the government of Poland with the following terms:
Principal US$1,000,000,000
Maturity 7 years
Interest rate LIBOR + 1.5%, reset every six months
Syndication fee 1.75%
What are the net proceeds to Poland from this syndicated loan?
Poland will receive $982,500,000, which equals the $1 billion less the 1.75% syndication fee
Assuming that six-month LIBOR is currently at 6.00%, what is the annual interest cost to Poland for the first six months of this loan?
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At 6-month LIBOR + 1.5%, Poland will pay interest at an annual rate of 7.50% (6.00% + 1.5%)
Principal of US$1 M, therefore payment is (0.0750)(1/2)(1,000,000,000) = $37,500,000
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Discussion: Why borrow in a Eurocurrency from a Eurobank?
.....to benefit from narrower interest rate spreads: The interest rate spread between deposit and loan rates are less than 1%
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Domestic Loan Rate
Domestic Deposit Rate
Domestic Spread
Eurodollar Loan Rate (LIBOR +)
Eurodollar Deposit Rate
Offshore Spread
Interest Rate
http://research.stlouisfed.org/fred2/series/DED3
http://research.stlouisfed.org/fred2/series/USD3MTD156N
But, why?
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The Eurocurrency interest rate spread is narrower because Eurobanking activities are outside the control of any central bank
No reserve requirements—banks can invest every Eurodeposit they receive
No FDIC premiums are imposed against their Eurodollar deposits—Consequently, deposits are unsecured!
Also, partly due to it being a different market: borrowers have higher credit ratings and loans are larger than $500,000
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LIBOR
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LIBOR
Banks accepting Eurodollar (Eurocurrency) deposits use the dollars (currency) to make two sorts of investments, loans and interbank placements
All such placements, like other Eurodeposits, have fixed maturities and bear interest
The rate at which banks in the City of London offer Eurocurrency in the placement market is referred to as the London Interbank Offer Rate (LIBOR)
Non-bank borrowers typically pay a premium over this base rate
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LIBOR is viewed as the most important benchmark in the world for short-term interest rates
LIBOR is used as the base rate for many futures and options and interest rate swaps
Banks also use the LIBOR interest rates as the base rate when setting the interest rates for loans, savings, and mortgages
Note, other financial centers have their own interbank offer rates: EURIBOR in the Eurozone, CIBOR in Copenhagen, MIBOR in Moscow, and SIBOR in Singapore
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The Intercontinental Exchange (ICE) is the parent company of the New York Stock Exchange and a couple dozen other exchanges and markets around the world
ICE took over administration of LIBOR from the British Bankers Association in early 2014
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As of Feb. 1, 2014, LIBOR is known as ICE LIBOR
It stands for Intercontinental Exchange London Interbank Offered Rate
http://www.global-rates.com/interest-rates/libor/libor-information.aspx
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Currencies
US dollar
Pound sterling
Euro
Japanese yen
Swiss franc
Maturities
Overnight
one week
1, 2, 3, 6 months
12 months
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While that makes for 35 different LIBORs, the one most commonly quoted is the 3-month dollar rate
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Calculation of LIBOR
On every working day at around 11 AM (London time), for each maturity, a panel of banks informs Thomson Reuters of the interest rate at which they would expect to raise a substantial loan in the interbank money market
A panel is made up for each currency consisting of at least 8 and not more than16 banks which are deemed to be representative for the London money market.
ICE then ranks the banks’ rate estimates, discards the top and bottom quartiles, and takes the average of the remaining 4 to 8 rates
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The LIBOR interest rates are not based on actual transactions!
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September 28, 2012
Control has been wrested from the British Bankers’ Association, which created Libor in the 1980s and…a committee that will pick a new, FSA-regulated administrator. NYSE Euronext…has indicated its willingness to manage Libor… Bloomberg…has also offered to develop a data-based index...
…the other major problem with the Libor rate that emerged during the financial crisis…investors began viewing higher than average rate submissions as evidence of weakness and some banks began deliberately understating their bids in response.
….Barclays paid £290m in penalties and admitted it had sought to manipulate the rate to make money on derivatives. About a dozen other financial institutions on three continents are also under investigations and more enforcement actions are expected.
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CNN Money
July 10, 2013
http://money.cnn.com/2013/07/09/investing/libor-nyse-uk/
….The U.K. Treasury said it made the decision to give NYSE Euronext (NYX) the power to run Libor following a competitive bidding process…However, the exchange did confirm that Libor would remain based in London.
The Libor scandal led major banks, including UBS (UBS) and Royal Bank of Scotland (RBS) to pay well over $2 billion in penalties after admitting to manipulating interest rates.
Barclays (BCS)admitted to manipulating Libor to appear stronger during the financial crisis, deliberately understating its borrowing costs, and to benefit trading positions tied to the rate. It paid $450 million as part of a settlement with US and UK regulators.
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Reuters
November 19, 2013
http://www.reuters.com/article/2013/11/19/britain-libor-idUSL5N0J431N20131119
Replacing the quote-based Libor with an index drawing on actual market trades won't happen anytime soon…Britain is facing pressure from the United States to replace Libor with a market-based index, which is considered less vulnerable to rigging.
Global regulators, such as the Financial Stability Board, are studying how transition to market-based alternatives could take place, with the outcome due next year.
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Deutsche Bank will pay $2.5 billion to settle charges it conspired to manipulate global interest rate benchmarks, U.S. and U.K. regulators announced Thursday
CNN Money
April 23, 2015
The authorities said Deutsche Bank employees manipulated the London Interbank Offered Rate, or Libor, the Euro Interbank Offered Rate, or Euribor, and the Euroyen Tokyo Interbank Offered Rate, or Tibor.
Regulators said derivatives traders conspired to move the benchmarks in a direction that would benefit them financially, at the expense of the bank's clients and trading partners. "Deutsche Bank secretly conspired with its competitors to rig the benchmark interest rates at the heart of the global financial system," said U.S. assistant attorney general Bill Baer. "Deutsche Bank's misconduct not only harmed its unsuspecting counterparties, it undermined the integrity and the competitiveness of financial markets everywhere."
From at least 2003 to 2010, Deutsche Bank employees used online chats, email and phone calls to arrange for the benchmarks to be moved higher or lower in order to make a trade more profitable. Regulators released several examples showing how Deutsche Bank traders would ask for the rates to be fixed.
In one message from 2005, a Deutsche Bank trader asked a fellow bank employee:
Can we have a high 6mth libor today pls gezzer?
The employee responded:
Sure dude, where wld you like it mate?
The scandal broke in the middle of 2012 when British bank Barclays admitted trying to manipulate Libor. The Justice Department has settled similar charges with five other banks, including Barclays, UBS, The Royal Bank of Scotland, Rabobank and Lloyds Banking Group.
International Bond Market
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International Bond Markets
International debt securities are thus those issued in markets other than the local market of the country where the borrower resides.
They encompass what market participants have traditionally referred to as foreign bonds and Eurobonds
Foreign bonds are issued by non-residents under the registration rules of a local market: for example, US-dollar bonds issued in the US market by borrowers residing outside the United States
Eurobonds, also known as offshore bonds, are issued outside the registration rules of any local market, usually in a foreign currency
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http://www.bis.org/publ/qtrpdf/r_qt1212h.pdf
International Bond Market facilities fall into two categories: Eurobonds (roughly 80%) and foreign bonds (roughly 20%)
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| International Money Market | International Bond and Note Market | Total Intl Debt Market | ||||||||
| Commercial Paper | Other | Total | Floating Rate | Fixed Rate | Equity-Related | Total | ||||
| US Dollar | 209.5 | 135.6 | 345.1 | 1,589.5 | 6,365.9 | 224.2 | 8,179.6 | 8,524.7 | ||
| Euro | 188.6 | 127.5 | 316.1 | 3,163.3 | 6,539.3 | 88.9 | 9,791.5 | 10,107.6 | ||
| Yen | 1.2 | 13.7 | 14.9 | 85.3 | 376.0 | 36.0 | 497.3 | 512.2 | ||
| Pound Sterling | 112.0 | 58.0 | 170.0 | 832.1 | 1,299.8 | 7.3 | 2,139.2 | 2,309.2 | ||
| Swiss Franc | 3.0 | 4.6 | 7.6 | 20.1 | 326.7 | 0.3 | 347.1 | 354.7 | ||
| Canadian Dollar | 6.0 | 0.2 | 6.2 | 34.4 | 197.9 | 14.1 | 246.4 | 252.6 | ||
| Other | 24.1 | 34.0 | 58.1 | 203.0 | 774.8 | 37.3 | 1,015.1 | 1,073.2 | ||
| 544.4 | 373.6 | 918.0 | 5,927.7 | 15,880.4 | 408.1 | 22,216.2 | 23,134.2 | |||
| http://www.bis.org/publ/qtrpdf/r_qa1409.pdf |
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Total world market value of debt securities is $87.2 T (over 25% larger than the world’s equity markets)
$23.1 T is international:
International bonds and notes: $22.2 T
International money market: $916 B
About 75% of international bonds and notes are fixed-rate and 25% are floating-rate
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http://www.bis.org/statistics/r_qa1409_hanx18.pdf
http://www.bis.org/statistics/r_qa1409_hanx15b.pdf
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Most issues of international bonds and notes are denominated in
Euros
US dollars
and in the pound sterling as a distant third
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http://www.bis.org/statistics/r_qa1409_hanx13b.pdf
Total Value All Currencies: US$ 22,200 B
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International Bonds & Notes by Currency of Issue (US$ B)
Euro US dollar Pound sterling Yen Swiss franc Australian dollar Canadian dollar Swedish krona Other 9791.4479169999995 8179.6395380000004 2139.2319050000001 497.23032439999997 347.10240290000002 307.4900409 246.42164149999999 119.17770299999999 572.3581360979997
Eurobonds
A Eurobonds, like euro-notes, euro-commercial paper, and euro medium-term notes, are bonds sold exclusively in countries other than the country in whose currency the issue is denominated
Eurobonds are underwritten by international syndicates of banks and other securities firms (20-300 banks) and simultaneously placed in many countries
Who issues Eurodollar bonds?
Financial institutions
MNEs
National governments and their agencies
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Sold exclusively in countries other than the country in whose currency the issue is denominated
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Unlike domestic US bonds, Eurobond coupon dates tend to be ANNUAL rather than semi-annual
Almost all Eurobonds are in BEARER form (traded without record of ownership)
In the US, Eurodollar bonds may not be sold to US citizens because they are not registered*
They mature in less than 10 years and typically at 5 years
A Eurobond can have several payment patterns but the majority are straight fixed rate**
Characteristics:
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* However, a US citizen may buy a Eurobond on the secondary market after a 40-day seasoning period
** Eurobonds can be Straight fixed-rate, Floating rate—typically a fixed spread above LIBOR, Equity-related issues—convertible into stock of the firm—Perpetuities (a few), and Zero-coupon bonds
Interestingly, some Eurobonds are Dual-currency!—A straight fixed-rate bond, with interest paid in one currency, and principal in another currency. Japanese firms have been big issuers: Yen are received at issue and coupon payments are in yen, but principal repayment in dollars
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Primary Market: Very similar to U.S. underwriting
Secondary Market:
Most Eurobonds are listed on the Luxembourg Stock Exchange, but they don’t actually trade there
Most trades occur in the OTC market in London
Eurobond Market Structure:
Bearer Bonds are bonds with no registered owner. As such they offer anonymity but they also offer the same risk of loss as currency
To receive an interest payment, the bearer clips a dated coupon from the bond and presents it to the bank listed on the bond as a paying agent
“On shore” in the US and Japan, bonds are typically registered : the owners name is registered with the issuer or broker (in most of Western Europe, however, bearer bonds are issued)
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http://www.wilmott.com/messageview.cfm?catid=3&threadid=26219
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Why does the Eurobond market exist? ….Why borrow dollars, say, outside the US?
The Eurobond market began in the late 1950s and early 1960s when European firms began to issue dollar-denominated bonds in Europe
The US government instituted a 15% withholding tax—Interest Equalization Tax—on interest received from foreign borrowers. It was designed to restrict foreign bond issues sold in the US market. (It has since been repealed.)
The effect of the tax was to stimulate the development of the Euromarkets by driving dollar-denominated financing activity to London
This provides a lesson on the potential efficacy or lack of efficacy of financial regulations in global markets where market participants can cross national boundaries
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The Eurobond markets continue to exist (despite the repeal of the Interest Equalization Tax) for several reasons
Less stringent regulation and disclosure:
Non-US firms can avoid costs of registration and disclosure with the SEC by issuing dollar-denominated bonds outside the US*
US firms often find Eurobond offerings cheaper and faster to raise US$
Favorable tax treatments for these bonds
Interest generally not subject to income withholding tax
In bearer form so interest earned is not even traceable (enable tax evasion)
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* In general, governments impose less stringent limitations on foreign issuers if the issue itself is in a foreign currency
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The Eurobond market is unregulated and often a lower cost source of capital!
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Example: IBM needs to raise $1 billion and is trying to decide between a domestic dollar bond issue and a Eurobond issue, each with a 10-year maturity
The US bond can be issued at a coupon of 6.75%, paid semiannually, with underwriting and other expenses totaling 0.95% of the issue size.
The Eurobond would cost only 0.55% to issue but would bear an annual coupon of 6.88%
Assuming all else is equal, which is the least expensive issue for IBM?
The least expensive issue can be found by computing the All-in Cost (AIC)
The AIC is the IRR that equates the present value of all future interest and principal payments to the net proceeds at issuance
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Example (continued):
For the domestic bond issue
PV=$990,500,000 ($1B less 0.95% in issuance costs)
PMT=(1/2)(6.75%)$1B=$33,750,000
FV=$1B
N=20
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Calculator Solution
PV=-990,500,000
PMT=33,750,000
FV=1,000,000,000
N=20
I 3.44%
The semiannual yield = 3.44%
Compounded annual yield (EAR or APY): (1.0344)2 – 1 = 7.00%
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For the Eurobond issue
PV=$994,500,000 ($1B less 0.55% in issuance costs)
PMT=(6.88%)$1B=$68,800,000
FV=$1B
N=10
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Calculator Solution
PV=-994,500,000
PMT=68,800,000
FV=1,000,000,000
N=10
I 6.96%
Since the Eurobond yield is less than the EAR/APY for the US bond, the Eurobond is the less expensive bond to issue
Annual yield = 6.96%
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Foreign Bond Market
A foreign bond is a bond underwritten by a syndicate typically composed of members from a single country, sold principally within that country, and denominated in the currency of that country—just the issuer is from another country
Many cute nicknames exist for foreign bonds
Consider bonds sold in the following countries by foreign issuers
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Foreign bonds are denominated in the currency of the country in which they are sold—unlike all the other instruments in these notes, foreign bonds are NOT Eurocurrency instruments
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US
Japan
UK
Switzerland
Spain
New Zealand
Yankee bonds
Samurai bonds
Bulldog bonds
Heidi bonds
Matadors
Kauris
Example: Michelin of France issues bonds denominated in USD in the US. The issue is underwritten by a syndicate of US securities houses—this is a Yankee bond
Yankee bonds must meet the requirements of the SEC, just like US domestic bonds (for example, Securities Act of 1933 )
In the US, public debt securities in amounts greater than $1.5M must file a registration statement (unless maturing in less than 270 days)
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http://www.wsj.com/articles/french-bank-cdc-offers-samurai-bonds-1406118143
Many borrowers find this level of regulation burdensome and prefer to raise US dollars in the Eurobond market
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Yuan-denominated International Bonds
Dim sum bonds are yuan-denominated bonds issued outside of China
First issued in Hong Kong, they are named after dim sum, a popular style of cuisine in Hong Kong http://www.nortonrosefulbright.com/knowledge/publications/61977/the-market-for-dim-sum-bonds
London is becoming a center for dim sum bond issues. Dim sum bonds often list on the London Stock Exchange https://www.lseg.com/renminbi
Panda bonds are yuan-denominated debt issued in China by overseas companies—foreign bonds!
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Global Bonds
Global Bonds are issued and traded in the foreign bond market of one or more countries as well as in the Eurobond market
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The blurring of the distinctions in the international bond market!
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World Bank Prices its Largest NZD Kauri Bond
Washington, DC, February 18, 2014 . Today, the World Bank (rated Aaa/AAA) priced a new NZD 550 million 5-year fixed-rate global bond. This is the World Bank’s largest single tranche Kauri bond and this issue brings the World Bank’s outstanding total in Kauri bonds to NZD 3.8 billion. The bonds were distributed to a broad range of institutional investors in New Zealand 26%, Asia 55%, Europe 16%, and Americas 3% with over 20 orders from central banks and other official institutions, commercial banks, fund managers and pension/insurance companies.
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Summary
Eurocurrencies are domestic currencies of one country on deposit in another country
The Eurocurrency interest rate spread is narrower because Eurobanking activities are outside the control of any central bank
The rate at which banks in London offer Eurocurrency is referred to as the London Interbank Offer Rate (LIBOR)
Three major sources of debt funding are international bank loans, the Euronote market, and the international bond market
International bonds can be:
Foreign bonds issued by non-residents under the registration rules of a local market
Eurobonds issued outside the registration rules of any local market (offshore) and denominated in currencies different from those of the market where issued
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Three benefits of raising capital in the Eurobond market as opposed to domestic bond markets are:
The absence of regulatory interference
Less stringent disclosure practices
Favorable tax treatment—tax evasion
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RankCompanyCountrySalesProfitsAssetsMarket Value
1ICBCChina$166.8 B$44.8 B$3,322 B$278.3 B
2Bank of ChinaChina$120.3 B$27.5 B$2,458.3 B$199.1 B
3JPMorgan ChaseUnited States$97.8 B$21.2 B$2,593.6 B$225.5 B
4Wells FargoUnited States$90.4 B$23.1 B$1,701.4 B$278.3 B
5HSBC HoldingsUnited Kingdom$81.1 B$13.5 B$2,634.1 B$167.7 B
6CitigroupUnited States$93.9 B$7.2 B$1,846 B$156.7 B
7Bank of AmericaUnited States$97 B$4.8 B$2,114.1 B$163.2 B
8Banco SantanderSpain$56.4 B$7.7 B$1,532.3 B$109.4 B
9Commonwealth BankAustralia$39.6 B$8.1 B$696.2 B$117.1 B
10Royal Bank of CanadaCanada$38.9 B$8.3 B$857 B$89.3 B
Sheet1
| Rank | Company | Country | Sales | Profits | Assets | Market Value |
| 1 | ICBC | China | $166.8 B | $44.8 B | $3,322 B | $278.3 B |
| 2 | Bank of China | China | $120.3 B | $27.5 B | $2,458.3 B | $199.1 B |
| 3 | JPMorgan Chase | United States | $97.8 B | $21.2 B | $2,593.6 B | $225.5 B |
| 4 | Wells Fargo | United States | $90.4 B | $23.1 B | $1,701.4 B | $278.3 B |
| 5 | HSBC Holdings | United Kingdom | $81.1 B | $13.5 B | $2,634.1 B | $167.7 B |
| 6 | Citigroup | United States | $93.9 B | $7.2 B | $1,846 B | $156.7 B |
| 7 | Bank of America | United States | $97 B | $4.8 B | $2,114.1 B | $163.2 B |
| 8 | Banco Santander | Spain | $56.4 B | $7.7 B | $1,532.3 B | $109.4 B |
| 9 | Commonwealth Bank | Australia | $39.6 B | $8.1 B | $696.2 B | $117.1 B |
| 10 | Royal Bank of Canada | Canada | $38.9 B | $8.3 B | $857 B | $89.3 B |
| 11 | Westpac Bnking Grp | Australia | $35.6 B | $6.9 B | $674.5 B | $94.2 B |
| 12 | TD Bank Group | Canada | $32.7 B | $7 B | $851.9 B | $80.4 B |
| 13 | ANZ | Australia | $32.6 B | $6.7 B | $676.7 B | $77.6 B |
| 14 | Natl Australia Bank | Australia | $33.4 B | $4.9 B | $772.9 B | $71.7 B |
| 15 | ING Group | Netherlands | $65.7 B | $2.6 B | $1,195.7 B | $58.9 B |
| 16 | Lloyds Banking Group | United Kingdom | $65.6 B | $1.9 B | $1,333 B | $84.4 B |
| 17 | Société Générale | France | $54.2 B | $3.6 B | $1,583 B | $40.7 B |
| 18 | Bank of Nova Scotia | Canada | $27.9 B | $6.4 B | $671.9 B | $61.3 B |
| 19 | Deutsche Bank | Germany | $56.4 B | $2.2 B | $2,067.6 B | $49.7 B |
| 20 | Mizuho Financial | Japan | $27 B | $6.1 B | $1,634.7 B | $43.6 B |
| 21 | US Bancorp | United States | $20.3 B | $5.8 B | $406.2 B | $77.2 B |
| 22 | Standard Chartered | United Kingdom | $24.8 B | $2.6 B | $725.9 B | $39.8 B |
| 23 | Bank of Montreal | Canada | $20.1 B | $3.8 B | $530.3 B | $39.7 B |
| 24 | PNC Financial Svcs | United States | $16 B | $4.2 B | $345.1 B | $48.2 B |
| 25 | BNY Mellon | United States | $15.1 B | $2.5 B | $385.3 B | $45.1 B |
| 26 | Natixis | France | $23.7 B | $1.5 B | $714.4 B | $24.5 B |
| 27 | BB&T | United States | $9.7 B | $2.2 B | $188.4 B | $28.3 B |
| 28 | BNP Paribas | France | $124.5 B | $208 M | $2,514.2 B | $78.4 B |
| 29 | FirstRand | South Africa | $8.3 B | $1.9 B | $84.6 B | $26.9 B |
| 30 | Barclays | United Kingdom | $53 B | $-287 M | $2,117.3 B | $63.7 B |
| 31 | Royal Bank of Scotland | United Kingdom | $35.6 B | $-4.6 B | $1,638.4 B | $60.2 B |
| 32 | Regions Financial | United States | $5.4 B | $1.2 B | $120.4 B | $12.8 B |
| 33 | KeyCorp | United States | $4.3 B | $900 M | $93.8 B | $12.1 B |
| 34 | Comerica | United States | $2.6 B | $586 M | $69.5 B | $8.1 B |
| 35 | China Devel Financial | Taiwan | $1.1 B | $335 M | $30.3 B | $5.2 B |
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RankCompanyCountrySalesProfitsAssetsMarket Value
10Royal Bank of CanadaCanada$38.9 B$8.3 B$857 B$89.3 B
11Westpac Banking GrpAustralia$35.6 B$6.9 B$674.5 B$94.2 B
12TD Bank GroupCanada$32.7 B$7 B$851.9 B$80.4 B
13ANZAustralia$32.6 B$6.7 B$676.7 B$77.6 B
14Natl Australia BankAustralia$33.4 B$4.9 B$772.9 B$71.7 B
15ING GroupNetherlands$65.7 B$2.6 B$1,195.7 B$58.9 B
16Lloyds Banking GroupUnited Kingdom$65.6 B$1.9 B$1,333 B$84.4 B
17Société GénéraleFrance$54.2 B$3.6 B$1,583 B$40.7 B
18Bank of Nova ScotiaCanada$27.9 B$6.4 B$671.9 B$61.3 B
19Deutsche BankGermany$56.4 B$2.2 B$2,067.6 B$49.7 B
20Mizuho FinancialJapan$27 B$6.1 B$1,634.7 B$43.6 B
Sheet1
| Rank | Company | Country | Sales | Profits | Assets | Market Value |
| 1 | ICBC | China | $166.8 B | $44.8 B | $3,322 B | $278.3 B |
| 2 | Bank of China | China | $120.3 B | $27.5 B | $2,458.3 B | $199.1 B |
| 3 | JPMorgan Chase | United States | $97.8 B | $21.2 B | $2,593.6 B | $225.5 B |
| 4 | Wells Fargo | United States | $90.4 B | $23.1 B | $1,701.4 B | $278.3 B |
| 5 | HSBC Holdings | United Kingdom | $81.1 B | $13.5 B | $2,634.1 B | $167.7 B |
| 6 | Citigroup | United States | $93.9 B | $7.2 B | $1,846 B | $156.7 B |
| 7 | Bank of America | United States | $97 B | $4.8 B | $2,114.1 B | $163.2 B |
| 8 | Banco Santander | Spain | $56.4 B | $7.7 B | $1,532.3 B | $109.4 B |
| 9 | Commonwealth Bank | Australia | $39.6 B | $8.1 B | $696.2 B | $117.1 B |
| 10 | Royal Bank of Canada | Canada | $38.9 B | $8.3 B | $857 B | $89.3 B |
| 11 | Westpac Banking Grp | Australia | $35.6 B | $6.9 B | $674.5 B | $94.2 B |
| 12 | TD Bank Group | Canada | $32.7 B | $7 B | $851.9 B | $80.4 B |
| 13 | ANZ | Australia | $32.6 B | $6.7 B | $676.7 B | $77.6 B |
| 14 | Natl Australia Bank | Australia | $33.4 B | $4.9 B | $772.9 B | $71.7 B |
| 15 | ING Group | Netherlands | $65.7 B | $2.6 B | $1,195.7 B | $58.9 B |
| 16 | Lloyds Banking Group | United Kingdom | $65.6 B | $1.9 B | $1,333 B | $84.4 B |
| 17 | Société Générale | France | $54.2 B | $3.6 B | $1,583 B | $40.7 B |
| 18 | Bank of Nova Scotia | Canada | $27.9 B | $6.4 B | $671.9 B | $61.3 B |
| 19 | Deutsche Bank | Germany | $56.4 B | $2.2 B | $2,067.6 B | $49.7 B |
| 20 | Mizuho Financial | Japan | $27 B | $6.1 B | $1,634.7 B | $43.6 B |
| 21 | US Bancorp | United States | $20.3 B | $5.8 B | $406.2 B | $77.2 B |
| 22 | Standard Chartered | United Kingdom | $24.8 B | $2.6 B | $725.9 B | $39.8 B |
| 23 | Bank of Montreal | Canada | $20.1 B | $3.8 B | $530.3 B | $39.7 B |
| 24 | PNC Financial Svcs | United States | $16 B | $4.2 B | $345.1 B | $48.2 B |
| 25 | BNY Mellon | United States | $15.1 B | $2.5 B | $385.3 B | $45.1 B |
| 26 | Natixis | France | $23.7 B | $1.5 B | $714.4 B | $24.5 B |
| 27 | BB&T | United States | $9.7 B | $2.2 B | $188.4 B | $28.3 B |
| 28 | BNP Paribas | France | $124.5 B | $208 M | $2,514.2 B | $78.4 B |
| 29 | FirstRand | South Africa | $8.3 B | $1.9 B | $84.6 B | $26.9 B |
| 30 | Barclays | United Kingdom | $53 B | $-287 M | $2,117.3 B | $63.7 B |
| 31 | Royal Bank of Scotland | United Kingdom | $35.6 B | $-4.6 B | $1,638.4 B | $60.2 B |
| 32 | Regions Financial | United States | $5.4 B | $1.2 B | $120.4 B | $12.8 B |
| 33 | KeyCorp | United States | $4.3 B | $900 M | $93.8 B | $12.1 B |
| 34 | Comerica | United States | $2.6 B | $586 M | $69.5 B | $8.1 B |
| 35 | China Devel Financial | Taiwan | $1.1 B | $335 M | $30.3 B | $5.2 B |
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Sheet1
| Rank | Company | Country | Sales | Profits | Assets | Market Value |
| 1 | ICBC | China | $166.8 B | $44.8 B | $3,322 B | $278.3 B |
| 2 | Bank of China | China | $120.3 B | $27.5 B | $2,458.3 B | $199.1 B |
| 3 | JPMorgan Chase | United States | $97.8 B | $21.2 B | $2,593.6 B | $225.5 B |
| 4 | Wells Fargo | United States | $90.4 B | $23.1 B | $1,701.4 B | $278.3 B |
| 5 | HSBC Holdings | United Kingdom | $81.1 B | $13.5 B | $2,634.1 B | $167.7 B |
| 6 | Citigroup | United States | $93.9 B | $7.2 B | $1,846 B | $156.7 B |
| 7 | Bank of America | United States | $97 B | $4.8 B | $2,114.1 B | $163.2 B |
| 8 | Banco Santander | Spain | $56.4 B | $7.7 B | $1,532.3 B | $109.4 B |
| 9 | Commonwealth Bank | Australia | $39.6 B | $8.1 B | $696.2 B | $117.1 B |
| 10 | Royal Bank of Canada | Canada | $38.9 B | $8.3 B | $857 B | $89.3 B |
| 11 | Westpac Banking Grp | Australia | $35.6 B | $6.9 B | $674.5 B | $94.2 B |
| 12 | TD Bank Group | Canada | $32.7 B | $7 B | $851.9 B | $80.4 B |
| 13 | ANZ | Australia | $32.6 B | $6.7 B | $676.7 B | $77.6 B |
| 14 | Natl Australia Bank | Australia | $33.4 B | $4.9 B | $772.9 B | $71.7 B |
| 15 | ING Group | Netherlands | $65.7 B | $2.6 B | $1,195.7 B | $58.9 B |
| 16 | Lloyds Banking Group | United Kingdom | $65.6 B | $1.9 B | $1,333 B | $84.4 B |
| 17 | Société Générale | France | $54.2 B | $3.6 B | $1,583 B | $40.7 B |
| 18 | Bank of Nova Scotia | Canada | $27.9 B | $6.4 B | $671.9 B | $61.3 B |
| 19 | Deutsche Bank | Germany | $56.4 B | $2.2 B | $2,067.6 B | $49.7 B |
| 20 | Mizuho Financial | Japan | $27 B | $6.1 B | $1,634.7 B | $43.6 B |
| 21 | US Bancorp | United States | $20.3 B | $5.8 B | $406.2 B | $77.2 B |
| 22 | Standard Chartered | United Kingdom | $24.8 B | $2.6 B | $725.9 B | $39.8 B |
| 23 | Bank of Montreal | Canada | $20.1 B | $3.8 B | $530.3 B | $39.7 B |
| 24 | PNC Financial Svcs | United States | $16 B | $4.2 B | $345.1 B | $48.2 B |
| 25 | BNY Mellon | United States | $15.1 B | $2.5 B | $385.3 B | $45.1 B |
| 26 | Natixis | France | $23.7 B | $1.5 B | $714.4 B | $24.5 B |
| 27 | BB&T | United States | $9.7 B | $2.2 B | $188.4 B | $28.3 B |
| 28 | BNP Paribas | France | $124.5 B | $208 M | $2,514.2 B | $78.4 B |
| 29 | FirstRand | South Africa | $8.3 B | $1.9 B | $84.6 B | $26.9 B |
| 30 | Barclays | United Kingdom | $53 B | $-287 M | $2,117.3 B | $63.7 B |
| 31 | Royal Bank of Scotland | United Kingdom | $35.6 B | $-4.6 B | $1,638.4 B | $60.2 B |
| 32 | Regions Financial | United States | $5.4 B | $1.2 B | $120.4 B | $12.8 B |
| 33 | KeyCorp | United States | $4.3 B | $900 M | $93.8 B | $12.1 B |
| 34 | Comerica | United States | $2.6 B | $586 M | $69.5 B | $8.1 B |
| 35 | China Devel Financial | Taiwan | $1.1 B | $335 M | $30.3 B | $5.2 B |
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21US BancorpUnited States$20.3 B$5.8 B$406.2 B$77.2 B
22Standard CharteredUnited Kingdom$24.8 B$2.6 B$725.9 B$39.8 B
23Bank of MontrealCanada$20.1 B$3.8 B$530.3 B$39.7 B
24PNC Financial SvcsUnited States$16 B$4.2 B$345.1 B$48.2 B
25BNY MellonUnited States$15.1 B$2.5 B$385.3 B$45.1 B
Sheet1
| Rank | Company | Country | Sales | Profits | Assets | Market Value |
| 1 | ICBC | China | $166.8 B | $44.8 B | $3,322 B | $278.3 B |
| 2 | Bank of China | China | $120.3 B | $27.5 B | $2,458.3 B | $199.1 B |
| 3 | JPMorgan Chase | United States | $97.8 B | $21.2 B | $2,593.6 B | $225.5 B |
| 4 | Wells Fargo | United States | $90.4 B | $23.1 B | $1,701.4 B | $278.3 B |
| 5 | HSBC Holdings | United Kingdom | $81.1 B | $13.5 B | $2,634.1 B | $167.7 B |
| 6 | Citigroup | United States | $93.9 B | $7.2 B | $1,846 B | $156.7 B |
| 7 | Bank of America | United States | $97 B | $4.8 B | $2,114.1 B | $163.2 B |
| 8 | Banco Santander | Spain | $56.4 B | $7.7 B | $1,532.3 B | $109.4 B |
| 9 | Commonwealth Bank | Australia | $39.6 B | $8.1 B | $696.2 B | $117.1 B |
| 10 | Royal Bank of Canada | Canada | $38.9 B | $8.3 B | $857 B | $89.3 B |
| 11 | Westpac Banking Grp | Australia | $35.6 B | $6.9 B | $674.5 B | $94.2 B |
| 12 | TD Bank Group | Canada | $32.7 B | $7 B | $851.9 B | $80.4 B |
| 13 | ANZ | Australia | $32.6 B | $6.7 B | $676.7 B | $77.6 B |
| 14 | Natl Australia Bank | Australia | $33.4 B | $4.9 B | $772.9 B | $71.7 B |
| 15 | ING Group | Netherlands | $65.7 B | $2.6 B | $1,195.7 B | $58.9 B |
| 16 | Lloyds Banking Group | United Kingdom | $65.6 B | $1.9 B | $1,333 B | $84.4 B |
| 17 | Société Générale | France | $54.2 B | $3.6 B | $1,583 B | $40.7 B |
| 18 | Bank of Nova Scotia | Canada | $27.9 B | $6.4 B | $671.9 B | $61.3 B |
| 19 | Deutsche Bank | Germany | $56.4 B | $2.2 B | $2,067.6 B | $49.7 B |
| 20 | Mizuho Financial | Japan | $27 B | $6.1 B | $1,634.7 B | $43.6 B |
| 21 | US Bancorp | United States | $20.3 B | $5.8 B | $406.2 B | $77.2 B |
| 22 | Standard Chartered | United Kingdom | $24.8 B | $2.6 B | $725.9 B | $39.8 B |
| 23 | Bank of Montreal | Canada | $20.1 B | $3.8 B | $530.3 B | $39.7 B |
| 24 | PNC Financial Svcs | United States | $16 B | $4.2 B | $345.1 B | $48.2 B |
| 25 | BNY Mellon | United States | $15.1 B | $2.5 B | $385.3 B | $45.1 B |
| 26 | Natixis | France | $23.7 B | $1.5 B | $714.4 B | $24.5 B |
| 27 | BB&T | United States | $9.7 B | $2.2 B | $188.4 B | $28.3 B |
| 28 | BNP Paribas | France | $124.5 B | $208 M | $2,514.2 B | $78.4 B |
| 29 | FirstRand | South Africa | $8.3 B | $1.9 B | $84.6 B | $26.9 B |
| 30 | Barclays | United Kingdom | $53 B | $-287 M | $2,117.3 B | $63.7 B |
| 31 | Royal Bank of Scotland | United Kingdom | $35.6 B | $-4.6 B | $1,638.4 B | $60.2 B |
| 32 | Regions Financial | United States | $5.4 B | $1.2 B | $120.4 B | $12.8 B |
| 33 | KeyCorp | United States | $4.3 B | $900 M | $93.8 B | $12.1 B |
| 34 | Comerica | United States | $2.6 B | $586 M | $69.5 B | $8.1 B |
| 35 | China Devel Financial | Taiwan | $1.1 B | $335 M | $30.3 B | $5.2 B |
Search by company name
Search by company name
Sheet1
| Rank | Company | Country | Sales | Profits | Assets | Market Value |
| 1 | ICBC | China | $166.8 B | $44.8 B | $3,322 B | $278.3 B |
| 2 | Bank of China | China | $120.3 B | $27.5 B | $2,458.3 B | $199.1 B |
| 3 | JPMorgan Chase | United States | $97.8 B | $21.2 B | $2,593.6 B | $225.5 B |
| 4 | Wells Fargo | United States | $90.4 B | $23.1 B | $1,701.4 B | $278.3 B |
| 5 | HSBC Holdings | United Kingdom | $81.1 B | $13.5 B | $2,634.1 B | $167.7 B |
| 6 | Citigroup | United States | $93.9 B | $7.2 B | $1,846 B | $156.7 B |
| 7 | Bank of America | United States | $97 B | $4.8 B | $2,114.1 B | $163.2 B |
| 8 | Banco Santander | Spain | $56.4 B | $7.7 B | $1,532.3 B | $109.4 B |
| 9 | Commonwealth Bank | Australia | $39.6 B | $8.1 B | $696.2 B | $117.1 B |
| 10 | Royal Bank of Canada | Canada | $38.9 B | $8.3 B | $857 B | $89.3 B |
| 11 | Westpac Banking Grp | Australia | $35.6 B | $6.9 B | $674.5 B | $94.2 B |
| 12 | TD Bank Group | Canada | $32.7 B | $7 B | $851.9 B | $80.4 B |
| 13 | ANZ | Australia | $32.6 B | $6.7 B | $676.7 B | $77.6 B |
| 14 | Natl Australia Bank | Australia | $33.4 B | $4.9 B | $772.9 B | $71.7 B |
| 15 | ING Group | Netherlands | $65.7 B | $2.6 B | $1,195.7 B | $58.9 B |
| 16 | Lloyds Banking Group | United Kingdom | $65.6 B | $1.9 B | $1,333 B | $84.4 B |
| 17 | Société Générale | France | $54.2 B | $3.6 B | $1,583 B | $40.7 B |
| 18 | Bank of Nova Scotia | Canada | $27.9 B | $6.4 B | $671.9 B | $61.3 B |
| 19 | Deutsche Bank | Germany | $56.4 B | $2.2 B | $2,067.6 B | $49.7 B |
| 20 | Mizuho Financial | Japan | $27 B | $6.1 B | $1,634.7 B | $43.6 B |
| 21 | US Bancorp | United States | $20.3 B | $5.8 B | $406.2 B | $77.2 B |
| 22 | Standard Chartered | United Kingdom | $24.8 B | $2.6 B | $725.9 B | $39.8 B |
| 23 | Bank of Montreal | Canada | $20.1 B | $3.8 B | $530.3 B | $39.7 B |
| 24 | PNC Financial Svcs | United States | $16 B | $4.2 B | $345.1 B | $48.2 B |
| 25 | BNY Mellon | United States | $15.1 B | $2.5 B | $385.3 B | $45.1 B |
| 26 | Natixis | France | $23.7 B | $1.5 B | $714.4 B | $24.5 B |
| 27 | BB&T | United States | $9.7 B | $2.2 B | $188.4 B | $28.3 B |
| 28 | BNP Paribas | France | $124.5 B | $208 M | $2,514.2 B | $78.4 B |
| 29 | FirstRand | South Africa | $8.3 B | $1.9 B | $84.6 B | $26.9 B |
| 30 | Barclays | United Kingdom | $53 B | $-287 M | $2,117.3 B | $63.7 B |
| 31 | Royal Bank of Scotland | United Kingdom | $35.6 B | $-4.6 B | $1,638.4 B | $60.2 B |
| 32 | Regions Financial | United States | $5.4 B | $1.2 B | $120.4 B | $12.8 B |
| 33 | KeyCorp | United States | $4.3 B | $900 M | $93.8 B | $12.1 B |
| 34 | Comerica | United States | $2.6 B | $586 M | $69.5 B | $8.1 B |
| 35 | China Devel Financial | Taiwan | $1.1 B | $335 M | $30.3 B | $5.2 B |
Search by company name
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