NEW YORK–2023 proved to be a very good year for the top 25 global banks.
The top 25 global banks experienced year-on-year (YoY) top-line growth of 33.3% and a 5.1% increase in total assets in 2023, according to a new analysis from GlobalData.
Most of the top 25 banks reported YoY growth in their top-line performance, with Lloyds Banking Group and HSBC Holdings emerging as top performers, posting a growth of 85% and 78.3%, respectively. Societe Generale also registered a growth of 75%.
Global Data said Lloyds Banking Group experienced a £38,036 million increase in its net trading income, helping the firm to make a turnaround from a previous loss of £19,987 million in FY2022 into a gain of £18,049 million in FY2023. Its interest income also increased by 59%, driven by stronger margins and higher average interest-earning assets.
90% Gain in Interest Income
HSBC Holdings achieved a significant 90.9% growth in interest income, driven by the impact of higher market interest rates. Its net income from assets and liabilities of insurance businesses, including related derivatives, measured at fair value through profit or loss, reached $7.9 billion in FY2023, Global Data reported.
“This marks a significant turnaround from a net expense of $13.8 billion in FY2022, driven by favorable movements in debt securities and equities, particularly in portfolios in Hong Kong and France, due to changes in interest rates, the analysis found.
“Despite the ongoing macroeconomic challenges, the banks demonstrated resilience and achieved robust revenue growth, primarily attributed to a notable increase in interest income, thanks to higher interest rates and booming global equity markets,” the company said.
One Decline
In contrast, China Merchants Bank suffered a 2.1% decline in fee and commission income, owing to a decline in income from wealth management, asset management, and bank card fees. The bank also faced challenges such as insufficient effective credit demand and the continued downturn in the Chinese capital markets.
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