The Top 5 banks in Europe

When it comes to company ratings, there are two factors that are to be considered. The factors are:

  1. The total assets of the company
  2. The market capitalization of the company.

Although there are other ranking criteria used by other ranking companies, this article would focus mainly on the above listed factors.

Starting with the total asset, the total assets can be defined as the sum of the banks liability and the stockholder’s equity. In mathematical terms, this is:

Assets = Liabilities + Stockholder equity

This may sound a little too technical for the non-accounting folks reading this and so I will break the definition down into simpler bits.

Liabilities can be thought of as the money leaving the company, simply put, money the company owes. Examples of liabilities are rents, debts and utilities (such as the power and gas bill).

The stockholder equity is the amount of money allowed to be shared among its investors if the company decides to shut down and pay off all liabilities.

Hence, you can see that the asset is all of the money owned by the company. In this case all the prosperity owned by the bank.

And so to the ranking of the top 5 banks as ranked by the Company’s total assets.

Bank COUNTRY Total assets in trillion U.S dollars
1. HSBC Holdings UK 2.608
2. BNP Paribas FRANCE 2.417
3. Deutsche Bank GERMANY 2.006
4. Credit Agricole Group FRANCE 1.970
5. Barclays PLC UK 1.819

The ranking and the data therein is provided by Statista.

Secondly, the ranking by market capitalization. The marketing capitalization is the total value of the banks outstanding shares. Outstanding shares are shares currently owned by stockholders, public investors and company officials. The value of the outstanding shares does not include shares repurchased by another company.

Mathematically, the value of market capitalization (market cap) is:

Market capitalization = Number of Outstanding shares * Price per share

The market cap is a symbol of brand equity and so a good basis for ranking the banks.

Hence, the ranking of the top 5 banks as ranked by company’s Market Cap is:

RANK BANK COUNTRY MARKET CAP.(BILLION USD)
1. HSBC HOLDINGS UK 131.93
2. BANCO SANTANDER SPAIN 71.25
3. LLOYDS BANKING GROUP UK 70.00
4. BNP PARIBAS FRANCE 65.53
5. UBS SWITZERLAND 64.07

HSBC Bank PLC with a Market Cap. of $131.93 Billion and total assets size of $2.608 Trillion leads the ranking in the number one position. HSBC Bank was founded in the year 1865 in Birmingham, Great Britain with its headquarter in London, United Kingdom. The banks business encompasses the traditional bank duties of personal finance and commercial banking, consumer finance, private banking, corporate and investment banking. The bank’s industry of focus are the Financial and Insurance industries with its key product being Financial services. The bank is a subsidiary of HSBC Holdings PLC and it has an employee base of 85,000.