Top 25 global banks see market cap surge to $3.6trln in Q4 2023: GlobalData

The aggregate market capitalisation of the top 25 global banks grew by 11% to $3.61 trillion quarter-on-quarter (QoQ) during the fourth quarter of 2023, London-based GlobalData said in a report.

The rise in market cap was due to the recovery in risk appetite brought about by expectations over interest rate cuts.

Saudi-listed Al Rajhi Bank experienced a 28% growth in its stock value due to its robust business and funding profiles, profitability, and sound asset quality, said Murthy Grandhi, Company Profiles Analyst at GlobalData, said.

During Q3 2023, the bank achieved a 6.6% year-on-year (YoY) expansion in mortgage loans. Furthermore, corporate financing increased by 23.9%, while SME financing grew by 27.2% YoY.

This growth on the balance sheet, coupled with efficient operations and enhanced credit quality, sustained the bank’s upward momentum in its stock price, the report added.

NYSE-listed Charles Schwab, a securities broker-dealer, witnessed a 26.2% surge in its market capitalisation to $125.4 billion by December 31, 2023.

In 2024, GlobalData expects a rebound in the global banking sector, driven by factors such as policymakers in major economies pausing interest rate increases and a more moderate expansion of net interest margins compared to earlier projections.

Source: Zawya