Starting in 2016, the 20 largest banks in the world have lost a quarter of its total market value, total equivalent to $465 billion, writes The Wall Street Journal, citing data from research firm FactSet.
According to the edition, the maximum loss of the Italian UniCredit, whose market capitalization has dropped by almost two-thirds. The value of Royal Bank of Scotland fell by 56%, while Credit Suisse, Deutsche Bank and Barclays have fallen in price almost twice.
Best indicators market capitalization was at J. P. Morgan Chase and Industrial & commercial Bank of China, who have lost 10% of its value in dollar terms. In local currency stock prices of all 20 of the examined banks has declined over the last year. The exception was the British Standard Chartered, whose value in pounds has not changed.
WSJ notes that these estimates show the uncertainty of the investors. For example, according to FactSet, UniCredit is now worth 21% of its book value and capitalization of Deutsche Bank is 26% of what it was worth at the peak of the financial crisis of 2008. The market value of the German Bank, in dollar terms, the newspaper writes, is now roughly equal capitalization U.S. regional Bank SunTrust Banks Inc, operating in the South-East of the country.
Market value balance sheet only Wells Fargo and J. P. Morgan Chase — these two indicators are almost identical.
The fall in the value of Bank stocks due to a combination of reasons, writes the WSJ. This effect on the markets of the state of the Chinese economy, expectations of changes in interest rates by the fed and oil prices. British referendum on leaving the EU has only exacerbated this trend, the newspaper notes.
After the announcement on 24 June of the election results, which showed that the top scored opponents of British membership in the European Union, Britain’s biggest banks have lost almost a third of the capitalization in the first minutes of trading. Shares in Barclays fell by 30%, Royal Bank of Scotland — 35%, and Lloyd’s Bank — 30%.