As a result of the gradual normalization of global economic activity, the top 25 banks saw a return in their revenue and profitability growth in 2021, according to statistics shared with Finbold on May 25 from GlobalData. In point of fact, the average growth rate of total assets from year to year (y-o-y) for the world’s top 25 banks in 2021 was 7.5%. It is noteworthy that the majority of the leading players have recovered from the effects of COVID-19 in terms of the increase in their revenues and profits. Twenty of the banks, out of a total of 25, showed a year-over-year increase in their revenues. The two banks that had growth of more than 20 percent yearly were Lloyds Banking Group and Credit Agricole.
Net trading income gives banks a boost
As per, Company Profiles Analyst at GlobalData, Parth Vala: Likewise, Credit Agricole reported a modest increase in its interest income, amounting to 1.1%. On the other hand, it recorded a jump of 31% in its non-interest income, which was driven by a significant rise in net gains on other financial assets at fair value via profit. This development was driven by the fact that the company was profitable. Because of this, the income of the French behemoth increased revenue by 21.7%. Leading to reduced average interest rates on interest-earning assets, Mitsubishi UFJ’s revenue decreased by 16.8% in 2021, due to a considerable drop in its net income. Vala added: In terms of profitability, each of the 25 banks has made a return to growth, with 11 of the participants reporting an outstanding growth rate of over 50%.
