SNL Financial has released its first ranking of the largest 100 banks in the world. Banks in China, the United Kingdom, France and Japan comprise the five largest banks, based on assets, but U.S. banks would be included in the mix if adjusted for the netting of derivatives that is not permitted under IFRS. Industrial & Commercial Bank of China ranked as the largest bank in the world followed by HSBC Holdings and Crédit Agricole Group. The fourth largest bank is BNP Paribas and the fifth is Mitsubishi UFJ Financial Group. According to the report, SNL ranked the banks based on the assets they report under their respective accounting regimes. Industrial & Commercial Bank of China had $3.062 trillion in assets under IFRS, converted into U.S. dollars, as of 30 September. JPMorgan Chase & Co., which reports under U.S. GAAP, had $2.463 trillion in assets, making it the sixth largest bank in the world. However, if JPMorgan followed IFRS accounting principles, it would most likely rank as the largest bank in the world, SNL finds. A major difference between IFRS and U.S. GAAP accounting treatments is that IFRS filers must include the gross amount of derivative assets on their balance sheets, while U.S. GAAP filers report the net amount of derivative assets on their balance sheets. SNL calculates that JPMorgan’s third-quarter assets would increase by 49% to $3.677 trillion if the offsetting of derivative assets were removed. Bank of America, currently ranked 12th in the world, would likewise move up to No 2, and Citigroup, currently ranked 14th in the world, would move up to No 5.
