The rise in interest rates and the banking situation at the beginning of the year have generated economic uncertainty among those seeking to invest, being the bankruptcy of some banks the main factor that generates anxiety.
Although all the considerations are valid and it is a fact that the world economic situation is delicate, the truth is that some financial entities have presented good results in the first quarter of 2023.
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Every quarter, banks present a financial report on the total or net profits they had and for this beginning of the year the results are positive in most of the banks with the largest market capitalization, analyzed in a report by Economipedia, a digital school of economic and financial education. Here we tell you how the ranking of the largest banks in the world was and their income was adequate.
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1. JP Morgan Chase, United States
In first place is the American bank JP Morgan Chase, with a market capitalization, as of February 27, 2023, of US$ 414.81 billion.
According to financial reports, the company closed the first quarter of this year with a net profit of 12.622 million dollars, representing an increase of 52.4 percent compared to earnings for the same period of 2022.
2. Bank of America, United States
In second place is Bank of America, another American who reached a capitalization of US$ 273.81 billion.
Between January and March 2023, the modified company a net profit of 8,161 million dollars in the first quarter of 2023, 15.4 percent more than the 7,067 million dollars registered in the same period last year.
3. Industrial and Commercial Bank of China (ICBC)
After the dominance of the US, in third position is the Industrial and Commercial Bank of China (ICBC for its acronym in English). This had a capital of US$ 210.71 billion.
Despite the fact that information from China is not so easily accessible, according to recent reports, in the first quarter of 2023 this bank had a net profit of 90.16 billion yuan, about 13.02 billion US dollars.
It is necessary to add that the company presented a 4.8 percent drop in net interest income, one of its largest sources of profit, going from 176.885 million yuan last year to 168.410 million yuan this year.
4. Wells Fargo, United States
Again an American bank enters the list. Wells Fargo & Co. it is the fourth largest with $176.87 billion of market capital.
During the first quarter of the year, The benefit of the entity amounted to 4,991 million dollars compared to 3,788 million of dollars they achieved in the same period of the previous year, an increase of around 24.1 percent.
5. Morgan Stanley, United States
In fifth place is Morgan Stanley, with US$164.33 billion in capital.
According to reports for the first quarter of the year, the bank had net profits of $2.98 billion, down 19 percent from the previous year. The main drivers of the decline were declines in investment banking and brokerage.
6. China Construction Bank
The China Construction Bank (CCB for its acronym in English) was in sixth place in the ‘ranking’, with a capital of US$ 157.25 billion.
This bank reported a net profit of 89.1 billion yuan in the first quarter of 2023, down 2 percent than the same period in 2022. In total, the company earned 207.1 billion yuan in revenue, down 1 percent from 2022.
7. HSBC Holdings, UK
In seventh place is the British multinational, HSBC Holdings, with US$ 152.58 billion of value in the stock market.
In the first quarter of this year, profit before taxes tripled to 12,890 million dollars, exceeding projections of 8,640 million. The profits after taxes were at 11,000 million, an increase compared to the US$ 7,600 million that were acquired the previous year.
The positive change was caused by the reversal of $2.1 billion of a loss linked to the delayed sale of its French retail division and to the accounting of a gain of 1,500 million dollars for the purchase of the Silicon Valley Bank operation in the United Kingdom.
8. Charles Schwab, from the USA
In eighth place is Charles Schwab, with a capitalization of US$ 148.49 billion.
Between January and March, the company from First-quarter net income of $1.6 billion, up 14 percent than the $1.4 billion in the same period a year ago.
9. Agricultural Bank of China
Approaching the bottom of the ranking, in ninth place is the Agricultural Bank of China, also known as ABC, with a value of US$ 144.83, thousands of millions.
According to the latest financial reports, the company’s total revenue as of March 2023 amounted to 132.85 billion yuan, 0.39 percent more than the previous year, in addition to lNet revenue reached 71.55 billion yuan, an increase of 1.75 percent.
10. Royal Bank of Canada
Finally, there is a Canadian bank, the Royal Bank of Canada, with a figure of market capitalization of US$ 140.16 billion.
For the first quarter, the company reported that net interest income was 4,609 million dollars, compared to 3,917 million dollars a year ago. Net income was $2.387 million compared to $3.042 million a year ago.
JUAN DAVID CANO LOPERA
School of Multimedia Journalism EL TIEMPO
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