NEW YORK, Jan 15 The U.S. banking industry has been rattled to its core in the global financial crisis, with the market capitalization of companies like Citigroup (C.N) and Bank of America (BAC.N) and others dramatically declining.
Citi, once the world's largest bank and now No. 3 in the United States, said on Tuesday it would combine its Smith Barney brokerage and other units with Morgan Stanley's (MS.N) wealth management unit. The bank has reported $20.3 billion in net losses and taken more than $64 billion in credit losses and write-downs since Dec. 2007.
Bank of America is in talks to receive about $15 billion in additional bailout funds from the U.S. government, according to sources.
And on Thursday, JPMorgan Chase & Co (JPM.N) reported fourth-quarter profit plunged 76 percent as it wrote down bad loans, signaling that even the bank that has avoided the worst of the credit crisis is struggling with the recession. The bank turned a profit was because of special items.
The state of banks the world over has been altered by the global financial crisis.
According to Reuters data, as of the close of U.S markets on Thursday, the Industrial and Commercial Bank of China (601398.SS)(1398.HK) had a market capitalization of $167.2 billion, China Construction Bank (601939.SS) (0939.HK) had a market capitalization of $115.1 billion, and the Bank of China's (601988.SS)(3988.HK) market capitalization was $95.9 billion, putting them ahead of the largest U.S. bank, JPMorgan Chase, with its market capitalization of $90.8 billion.
On Thursday, the Dow Jones Titans Bank Index .DJTBAK, which does not include Chinese banks, showed U.K.-based HSBC (HSBA.L) with market capitalization of $100.9 billion.
Following is a table of the 10 largest U.S. banks, and 10 largest banks in the world, by market capitalization, as of the close of U.S. markets on Jan. 15, 2009.
TOP U.S. BANKS BY MARKET CAPITALIZATION RANK BANK AT JAN 15, 2009 AT JAN 1, 2007 % CHG
($bln) (approx) 1 JP Morgan Chase (JPM.N) $90.8 $166.2 -45% 2 Wells Fargo (WFC.N) $83.8 $120.1 -30% 3 Bank of America (BAC.N) $53.2 $238.3 -77% 4 US Bancorp (USB.N) $33.4 $63.3 -47% 5 Citigroup (C.N) $20.9 $274.5 -92% 6 PNC Financial (PNC.N) $14.5 $23.6 -39% 7 BB&T (BBT.N) $11.6 $24.0 -51% 8 Northern Trust (NTRS.O) $10.8 $13.3 -19% 9 SunTrust Banks (STI.N) $7.4 $29.9 -75% 10 Hudson City Bancorp (HCBK.O)$6.9 $7.8 -12% (Source: Dow Jones US Banks Index, Reuters) (The numbers of shares outstanding used in the 2007 calculations came from U.S. Securities and Exchange Commission filings)
TOP TEN WORLDWIDE BANKS BY MARKET CAPITALIZATION AS OF JAN 15, 2009
(in billions) 1 HSBC (HSBA.L) $100.9 2 JP Morgan Chase (JPM.N) $90.8 3 Wells Fargo (WFC.N) $83.8 4 Mitsubishi UFJ (8306.T) $67.4 5 Banco Santander (SAN.MC) $63.9 6 Bank of America (BAC.N) $53.2 7 Royal Bank of Canada(RY.TO)$38.2 8 Intesa SanPaolo (ISP.MI) $38.0 9 BBVA (BBVA.MC) $37.2 10 BNP Paribas (BNPP.PA) $36.9 (Source: Dow Jones Titans Banks Index, which does not include Chinese banks, Reuters) * (Reporting by Phil Wahba)