look news india
Ahmedabad: The total market capitalization of the world's top 25 banks rose 5.4 per cent to $4.11 trillion in the April-June 2024 quarter. The market value of bank shares has increased due to strong global economic cues. According to data cited in a recent note by GlobalData, a leading London-based data and analytics company, the market cap of China Construction Bank and HDFC Bank increased by more than 15 per cent in the recently ended quarter. The market cap of the two banks at the end of the June 2024 quarter was $187.6 and $154.4 billion, respectively.
According to the report, JPMorgan Chase retained its position as the most valuable bank globally for the ninth consecutive quarter. Its market cap rose by 0.7 percent to $580.8 billion. Investors are buoyed by expectations that the US Federal Reserve will cut interest rates in September 2024 and they are particularly excited about banking stocks.
The central bank's interest rates are stable between 5.25-5.5 percent and this will not increase the cost of deposits and will not reduce the profitability of banks. Due to the strong economy and slight improvement in credit, the earnings of banks may remain flat.
JPMorgan Chase has further strengthened its position as the world's leading bank. The bank reported a 9 percent increase in net income to $41.9 billion in the first quarter from last year.
Apart from JP Morgan, the market value of HDFC Bank has also increased tremendously. Its market capitalization has increased by 17 percent to $ 154.4 billion by the end of the June quarter. The market capitalization of China's four largest banks, ICBC, Bank of China, Agricultural Bank of China and China Construction Bank, increased by 3 to 22 percent, but their net interest margin declined in the quarter ended March 2024.