Finance

The world's listed banks lost $2126.7 bln in market value since Jan 1, 2020

The world's listed banks lost $2126.7 bln in market value since Jan 1, 2020
Tuesday, 30 June 2020 15:15

Since January 1, 2020, the cumulative market value of the world’s listed banks fell by $2,126.7 billion, according to data provided by Capital QI. In detail, a total of 1,601 banks experienced a decline in market value over the period under review while 192 saw an increase in their value and 50 others reported a stable value.

The top 30 largest banks by market capitalization, with U.S. JP Morgan Chase & Co on top of the list, did not escape this fall. As of June 26, JP Morgan Chase & Co reported a decline of 33.58% in its value. Though high, the loss of Chinese banks is less significant than the U.S. side. The biggest decline in China was reported by Industrial and Commercial Bank of China Limited (ICBC), whose value fell by 20.67% over the period. The other major Chinese banks present on financial markets posted a decline of less than 10%.

The global loss in value is linked to the fact that, overall, the turnover of big banks, which is closely linked both to the performance of the capital markets and to that of the global economy, is expected to decline in 2020. The International Monetary Fund has predicted a growth decline of around 8% for the developed economies where most of these banks are present. Subsequently, the recovery announced in 2021 (+4.8%) will not be enough to make up for the losses.

The coronavirus has put pressure on economic operators and governments that are clients of banks. The banks are forced to accept measures to restructure their loan portfolios or to make provisions for outstanding receivables. In both cases, there is a loss of income and shareholder value. Investment banking is also under pressure.

According to data provided by Refinitiv, Reuters' data service, global investment banking revenues reached $24.2 billion in Q1 2020, 7% down from Q1 2019. This is also the lowest level of revenue generated by the industry in a first quarter since 2016.

Investors see this situation as risk factors on their investments, or their profit objectives, which justifies a decline in the value of bank shares.

Idriss Linge

On the same topic
Côte d’Ivoire will receive $234 million for a sustainable urban mobility project in Abidjan. Gambia will receive $32.2 million to build...
Stanbic IBTC and Zenith Bank cut monthly card spending abroad to $500 and $200 Foreign reserves fall by $3.5 billion in six...
Cauri Money launches Gajo Money, an e-wallet for the Cameroonian diaspora, targeting €120 million in transactions by end-2025. The fintech...
• Kenya and ASR sign deal to reduce risk on projects worth up to $2 billion.• Risk cover will target infrastructure, energy, logistics, and trade...
Most Read
01

• Investors seem to keep focusing on yields, which are high for the moment• New Leadership might see...

Afreximbank Bonds Retain Market Confidence Despite Moody’s Downgrade
02

• ECOWAS Bank funds 47.7-km stretch of strategic 700-km road project• Lagos-Calabar highway seen boo...

Nigeria Secures $100 mln ECOWAS Bank Loan for Lagos-Calabar Coastal Highway
03

• Algeria grants commercial 5G licenses to top three telecom operators: Mobilis, Djezzy, and Ooredoo...

Algeria Awards Commercial 5G Licenses
04

• IFC teams up with AfDB and Nigeria’s EbonyLife to assess a new fund for African cinema• Sector cou...

IFC Plans Investment Fund to Help Grow African Film Industry
05

• Global coffee consumption projected to hit a record 169.4 million 60-kg bags in 2025/2026, up from...

Coffee: Global Consumption Expected to Reach Record Level in 2025/2026
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.