15th September 2020

Buy Shares survey indicates global largest banks lose $635bn in market cap amid pandemic

Data presented by Buy Shares indicates that 14 selected major global banks cumulatively lost $635.33bn in market capitalisation. The loss was majorly induced by the coronavirus pandemic between December 2019 and August 2020.

Wells Fargo recorded the biggest slump with a percentage change in the market capitalisation at -56.26% followed by Spain’s Banco Santander at -46.16%. JP Morgan Chase’s change in market capitalisation was -30.16%. During the period, Japan-based Mizuho Financial Group had the least change at -11.33%.

Intervention by central banks cushioned most facilities from a further slump. According to the research report:
“The drop in valuations for the selected banks could have been much worse if there was no intervention from central banks. The immediate measures taken by regulators to ease restrictions on liquidity and capital, banks have proved beneficial. Although the measures put in place by authorities helped banks, they still face some immediate pressures on their capital and liquidity position, as the length and severity of the outbreak remain uncertain.”

An overview of the individual market capitalisation shows that JP Morgan still holds a superior position at $437.2bn in December 2019 and $305.44bn as of August 2020. In December last year, Wells Fargo market cap stood at $227.5bn and in August it stood at $99.5bn.
At the end of last year, the Bank of America market cap stood at $316.8bn and by the end of August, the figure stood at $223.01bn.

Buy Shares Trends(10 articles)