Global Top 100 Banks` Total Shareholder Return Jumped by 16.8% Q-o-Q

Top 100 Banks
Photo by Jordan

The BankingHub data has revealed that in Q1 2021, global bank shares made up for the 2020 losses. Statistics show the total shareholder return or TSR of the global top 100 banks outperformed the market, growing by 16.8% quarter-over-quarter, the best TSR across all industry sectors.

In comparison, the energy sector ranked second with a TSR of 9.4% between January and March. Basic materials, industrial sector, and real estate market followed with 7.1%, 6.2%, and 5.1%, respectively.

This recovery was especially driven by the strong performance of the US banks whose TSR grew 22.6% year-over-year. Western European banks witnessed an 18.2% YoY increase.

Top 100 Banks
Photo by Jordan

Statistics show ING Group was the top performer among the European banks, with a TSR of 38.4% between January and March this year. Société Générale, Swedish SEB Group, and Barclays followed with 31.1%, 30.8%, and 27.5%, respectively.

Credit Suisse was the only European bank to show a negative TSR of -13.1% in this period.

Global Banking Sector Reaching Almost Pre-pandemic Heights, Market Cap Jumped by 20% Quarter-over-Quarter and Hit €7.3T

The economic recovery from the COVID-19 accelerated in the first half of 2021, causing the global banks’ market cap to almost completely recover and reach pre-pandemic levels.

According to data presented by Stock Apps, the market capitalization of the global banking sector jumped by nearly 20% since December and hit €7.3trn in the first quarter of 2021.

Global Banks` Market Cap Surged by 48% YoY, Top 100 Banks Up by 43%

Before the pandemic struck, the market capitalization of the global banking sector floated around €7.3trn, revealed the BankingHub data. In the fourth quarter of 2019, this figure rose to €7.6trn, despite the global economic downturn and geopolitical tensions.

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However, the COVID-19 outbreak changed that, causing the lowest quarterly value since the 2008 financial crisis. Statistics show that in the first quarter of 2020, the global banking market cap slumped to €4.9trn, a 31% decrease year-on-year. After floating around €5.2trn in the following months, this figure recovered to €6.1trn in Q4 2020, still a 20% drop year-over-year.

Global banking sector

Market capitalization of banking market worldwide from 1st quarter 2016 to 1st quarter 2021 (in trillion euros)

As the improving economic outlook and ongoing expansive monetary policies worldwide continued driving global capital markets to new heights, global top 100 banks emerged as one of the winners in Q1 2021.

Statistics show the market cap of the global banking sector hit €7.3trn in the first quarter of the year, up from €6.1trn in December. Compared to the same period in 2020, this represents a massive 48% increase in a year.

The market cap of the world’s top 100 banks jumped by nearly 19% quarter-over-quarter reaching €5.6trn in Q1 2021. Compared to €3.9trn in the first quarter of 2020, this represents a 43% jump YoY.