<\/p>\n
China\u2019s big four banks saw growth although NIMs fell.<\/p>\n
The market capitalization of the top 25 banks worldwide rose 5.4% quarter-on-quarter (QoQ) to $4.11t on the back of rising stock prices and a resilient US economy, reports GlobalData.<\/p>\n
Bullish investor sentiment is driven by an expected interest rate cut by the Federal Reserve in September 2024, said Murthy Grandhi, a GlobalData company profiles analyst.<\/p>\n
The US economy also showed resilience, with real GDP rising 2.5% in 2023 versus 1.9% in 2022. GDP is expected to grow by 2.1% in 2024, Grandhi said.<\/p>\n
\u201cOverall, investors remain optimistic about banking stocks as central bank rates in the range of 5.25-5.5% stabilize deposit costs, thus easing net interest margin pressure. A strong economy and an expected modest improvement in lending could offer a stable net interest income for banks,\u201d Grandhi said.<\/p>\n
China Construction Bank (CCB) and India\u2019s HDFC Bank saw their stocks rise over 15% in the quarter that ended on 30 June 2024.<\/p>\n
JPMorgan Chase retained its position as the most valuable bank for the ninth consecutive quarter. This reflects its resilient performance amid evolving economic landscapes, GlobalData said.<\/p>\n
HDFC Bank gained 17% in market value in end Q2 and is now valued at $154.4b. Its strong Q1 results met investor expectations, and propelled rising optimism for its future performance.<\/p>\n
\u201cHDFC Bank is expected to reclaim its industry-leading profitability, benefitting from an improved loan mix and normalized funding costs,\u201d GlobalData said.<\/p>\n
The market value of China\u2019s top four banks grew between 3% to 22% in Q1 despite declining interest earnings.<\/p>\n
ICBC, Bank of China, the Agricultural Bank of China, and CCB all experienced a decline in net interest margins (NIM) for the quarter that ended in March 2024, GlobalData reported.<\/p>\n
GlobalData blamed the lower NIMs on a reduction in the loan prime rate and low market interest rates.<\/p>\n
CCB\u2019s stock value surged 21.8% in Q2, after a strong Q1 performance that saw the Chinese bank reporting billions in increases to its gross loans and advances, financial investments, and deposits.<\/p>\n
Gross loans and advances rose by CNY1.17t ($164.15b) compared to end-2023. CCB\u2019s financial investments grew by CNY247.15b ($34.67b), whilst customer deposits rose by CNY1.71t ($239.91b.<\/p>\n
The performance of global banks in the last six months of 2024 will be shaped by several factors, including economic conditions, monetary policies, and inflation, according to GlobalData.<\/p>\n
\u201cGeopolitical factors, including trade tensions and conflicts, could affect international operations and market stability,\u201d Grandhi said.<\/p>\n
Regulatory scrutiny, as seen with TD Bank, will also impact strategic initiatives and performance.<\/p>\n
\u201cOverall, whilst challenges remain, the combination of potential rate cuts, economic resilience, and technological progress may benefit global banks,\u201d Grandhi said.<\/p>\n
<\/p>","protected":false},"excerpt":{"rendered":"
China\u2019s big four banks saw growth although NIMs fell. The market capitalization of the top 25 banks worldwide rose 5.4% quarter-on-quarter (QoQ) to $4.11t on the back of rising stock prices and a resilient US economy, reports GlobalData. Bullish investor sentiment is driven by an expected interest rate cut by the Federal Reserve in September […]<\/p>\n","protected":false},"author":1,"featured_media":2364,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2363","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bez-rubriki"],"featured_image_src":{"landsacpe":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/08\/Chase-44-1140x445.jpg",1140,445,true],"list":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/08\/Chase-44-463x348.jpg",463,348,true],"medium":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/08\/Chase-44-300x200.jpg",300,200,true],"full":["https:\/\/relinvestmentsgroup.com\/wp-content\/uploads\/2024\/08\/Chase-44.jpg",1200,800,false]},"_links":{"self":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/2363","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/comments?post=2363"}],"version-history":[{"count":1,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/2363\/revisions"}],"predecessor-version":[{"id":2365,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/posts\/2363\/revisions\/2365"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media\/2364"}],"wp:attachment":[{"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/media?parent=2363"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/categories?post=2363"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/relinvestmentsgroup.com\/en\/wp-json\/wp\/v2\/tags?post=2363"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}