17 Biggest Finance Companies in the World

In this article, we will look at the 17 largest financial companies by market capitalization. If you would like to see more of the largest financial companies by market capitalization, please go directly to 5 Largest Financial Companies in the World.

When most people think of financial companies, they think of banks. When it comes to banks, there are many different types of banks. Traditional community banks accept deposits and make loans to individuals. Corporate banks generally accept deposits and make loans from large corporations. Finally, capital market banks help companies and governments issue bonds and stocks in the capital markets. In addition to banks, some of the world’s largest financial companies help operate payment networks that help merchants accept payments from customers.

Many of today’s growing large banks offer additional services such as community banking, corporate banking, capital markets services, and wealth management.

Economically Important

Financial companies operate at the heart of the modern economy.

When banks do a good job of providing quality loans, a country’s economy can grow and grow faster than it otherwise would. The banks themselves may also benefit more in the long run.

If banks are not successful in providing quality loans, the country’s growth rate may not be as fast as expected. Bank profits may not be as high as expected in the long run.

Indeed, many of the world’s largest financial institutions are considered systemically important due to their importance and are therefore subject to more stringent regulation.

Leading Financial Companies

Given the size of the US economy, many of the world’s largest financial companies are based in the US. Because the U.S. dollar is used as the reserve currency in many countries around the world, many large U.S. financial companies have global operations.

Due to the growth of China’s economy in recent decades, it is now the second largest economy in the world. As a result, some of China’s largest banks are among the world’s largest financial companies. Because the Chinese government plays a much larger role in the economy than Western governments, Chinese banks are often run in the interests of the Chinese state rather than their shareholders. So even if China’s economy grows rapidly, its performance may not be able to keep up with that of Western banks.

Indian banks are also among the most valuable financial companies in the world, given its huge population and fast-growing economy.

2022

Given this year’s high inflation rate, the US Federal Reserve has already raised interest rates five times in 2022, and many analysts believe the central bank is likely to raise rates further by the end of the year. Expect.

Many financial giants faced headwinds from rising interest rates.

Higher interest rates benefit traditional community banks by facilitating increased net interest income, but raising interest rates too quickly or too high can slow economic activity. This could result in higher depreciation and lower overall interest rates. income. Given that some bank stocks have fallen this year, the market is likely to see write-downs from a potential recession next year outweigh the positive impact of higher net interest income, at least in the short term. He seems to be assuming that.

Rising interest rates have caused market prices to fall, creating an unfavorable situation for some banks’ asset management businesses. Finally, rising interest rates have led to a stronger US dollar, which is unfavorable from a US dollar perspective for some international companies that do business with large financial institutions.

Given the uncertainty, it may be a good idea for long-term investors to own a well-diversified portfolio of stocks across many different sectors.

Methodology

For our list of the world’s 17 largest financial companies, we selected the 17 largest companies by market capitalization from Companiesmarketcap.com’s list of largest financial services companies by market capitalization as of October 30th. Accepted.

17 The world’s largest financial company

  1. Commonwealth Bank
    Market capitalization as of October 30: $112.29 billion

Commonwealth Bank is Australia’s largest financial company with a market capitalization of over $112 billion as of October 30. The most valuable bank. In terms of stock performance, Commonwealth Bank shares have performed well over the long term, roughly doubling since 2010 and paying a dividend. Given Australia’s vast land, resources and growing economy, Commonwealth Bank has significant earning power.

Commonwealth Bank ranks among the world’s largest financial companies by market capitalization, along with Mastercard Co. (NYSE:MA), JPMorgan Chase & Co. (NYSE:JPM), and Visa Inc. (NYSE:V). One.

  1. American Express Company (NYSE:AXP)
    Market capitalization as of 10/30: $112.41 billion

Number of hedge fund holders: 67

Considering the possibility of a recession in 2023, American Express Company (NYSE:AXP) ) added $387 million to its allowance for bad debts in the third quarter, bringing its total allowance for loan losses to $778 million at the end of September. Still, says Jeff Campbell, his CFO at American Express Company (NYSE: AXP): . . Today, our credit profile is even stronger. ” October 30th. American Express Company (NYSE: AXP) has a market capitalization of $112.41 billion, ranking it 16th on the list of the world’s 17 largest financial companies.

  1. HDFC Bank Limited (NYSE:HDB)
    Market capitalization as of 10/30: $114.09 billion

Number of hedge fund holders: 34

HDFC Bank Limited (NYSE:HDB) is one of the largest banks in India Its market capitalization as of October 30 was over $114 billion. India, like many other parts of the world, faces inflationary headwinds but is experiencing impressive growth given its young population and developing economy. If HDFC Bank Limited (NYSE:HDB) can maintain its market share in the financial services sector, the company could grow significantly in the coming decades.

  1. Goldman Sachs Group, Inc. (NYSE:GS)
    Market capitalization as of October 30: $116.68 billion

Number of hedge fund holders: 69

Goldman Sachs Group, Inc. (NYSE:GS) is the most respected bank on Wall Street and also one of the most valuable, as the bank’s market capitalization is $116.68 billion. Goldman Sachs Group Inc.’s (NYSE:GS) investment banking and trading businesses are both highly profitable, but their performance can be volatile. As a result, Goldman Sachs Group (NYSE:GS) is looking to further diversify by expanding its wealth management business. Given its track record, Goldman Sachs Group (NYSE:GS) is poised for further growth over the long term.

  1. Toronto-Dominion Bank (NYSE:TD)
    Market capitalization as of 10/30: $116.87 billion

Number of hedge fund holders: 19

Toronto-Dominion Bank (NYSE:TD) is Canada’s largest bank This is one of the. As of July 31, 2022, Canada has more than 90,000 employees, more than 27 million customers, and $1.8 trillion in assets. Like many other financial institutions, Canada faces macroeconomic headwinds in 2022, but with the potential for strong long-term economic growth, Toronto-Dominion Bank ( NYSE:TD ) Maintaining market share has the potential for long-term revenue growth. On October 30th, Toronto-Dominion Bank (NYSE:TD) had a market capitalization of $116.87 billion.

  1. Bank of China
    Market capitalization as of October 30: US$117.15 billion

Bank of China is one of China’s four largest state-owned banks. Considering the size of China’s economy and the central role that big banks play in China, Bank of China’s assets will reach $4.2 trillion in 2022, according to Forbes magazine. Despite facing headwinds amid coronavirus lockdowns and economic slowdown, Bank of China has a market capitalization of more than $117 billion.

  1. Royal Bank of Canada (NYSE:RY)
    Market capitalization as of 10/30: $128.4 billion

Number of hedge fund holders: 12

Royal Bank of Canada (NYSE:RY) is Canada’s largest One. A bank with 89,000 full-time and part-time employees and his 17 million customers in Canada, the United States and 27 other countries. Royal Bank of Canada (NYSE:RY) is also Canada’s most valuable bank, with a market capitalization of $128.44 billion as of October 30th. In terms of strategy outside Canada, Royal Bank of Canada (NYSE:RY) plans to expand into the UK commercial banking market following its acquisition of fully integrated UK asset manager Brewin Dolphin in 2022. hopes to expand.

Disclosure: None. “The World’s 17 Largest Financial Companies” was originally published on Insider Monkey.