In this article, we will take a look at the top 20 investment companies in the world. If you want to see more of the top investment companies in the world, go directly to Top 5 Investment Companies in the World.
Although it might not sound very important, distributing capital efficiently is very important to an economy. With the smart and efficient distribution of capital to the investment projects, a country’s economy could potentially grow faster. With more capital going to the companies and projects that make the most productive use of the capital, private enterprise grows faster. With private enterprises larger, more potential jobs can be created and more products and services can be produced. With more products and services produced, living standards in a country can be higher.
Although many companies play a role in the investment industry, none arguably play a bigger role than investment banks. Investment banks serve as intermediaries that connect corporations and governments to the capital markets which help decide the distribution of capital through market prices.
With access to the capital markets, companies can access capital they need to grow and governments can obtain the financing they need for infrastructure projects if they also have approval of the markets.
In the same way that leading investment banks play a big role in a country’s economy, banks that lend to small and medium sized businesses can also help growth and create jobs in communities across the world.
2022
With high inflation in 2022, the Federal Reserve has increased interest rates substantially this year. With the higher interest rates, aggregate demand for investment has decreased and many investment banks have not done as well as they could have.
Nevertheless, there is a strong probability that the Federal Reserve will win its fight against inflation. The only question is when the Federal Reserve will win and whether the Federal Reserve will trigger a recession or a soft landing in its efforts.
If the Federal Reserve wins its fight against inflation, interest rates will eventually normalize and demand for investment could rebound. If demand for investment rebounds, business for investment banks and banks that lend to small and medium sized businesses could increase.
In terms of the current data, there has been some more positive data released in terms of recent inflation. According to the Bureau of Labor Statistics, the consumer price index for October rose only 7.7% from a year ago and 0.4% for the month. That’s less than the expected rise of 7.9% year over year and 0.6% for the month. When excluding food and energy costs, core CPI rose 6.3% year over year and 0.3% for the month, versus the expected increase of 6.5% year over year and 0.5% for the month.
While the recent data on inflation has been more positive, there is still the chance that inflation could increase again and there is still the probability that economic data might not meet expectations. If that happens, stocks could decline further. San Francisco Fed President Mary Daly also commented on the recent inflation data, “One month of data does not a victory make, and I think it’s really important to be thoughtful that this is just one piece of positive information, but we’re looking at a whole set of information.”
Given the uncertainty, it could be a good idea for long term investors to own a well diversified portfolio of stocks across many different sectors.
For our list of Top 20 Investment Companies in the World, we took the top 20 banks by assets in the world that had either had investment banks or were banks that helped small and medium sized businesses access capital as well.
We used assets as a way to rank banks because the loans or business that the banks facilitate often correlate with their assets.
Top 20 Investment Companies in the World
20. Groupe BPCE
Total Assets: $1.72 trillion
Groupe BPCE is one of France’s largest banks with total assets of $1.72 trillion. In addition to loaning money to small and medium sized businesses, Groupe BPCE helps develop France and the world’s economy with its banking subsidiary Natixis Corporate and Investment Banking. For the year, France’s economy is expected to expand 2.6%.
Banco Santander, S.A. (NYSE:SAN) is a multinational financial services company based in Spain. Banco Santander, S.A. (NYSE:SAN)’s investment bank, Santander CIB, “supports corporate and institutional customers, offering tailored services and value-added wholesale products suited to their complexity and sophistication.” With total assets of $1.81 trillion, Banco Santander, S.A. (NYSE:SAN) ranks #19 on our list of Top 20 Investment Companies in the World.
18. Bank of Communications
Total Assets: $1.84 trillion
Bank of Communications is a Chinese state owned bank founded in 1908 and headquartered in Shanghai. In terms of its investment bank, Bank of Communications, “provides a full range of domestic and overseas financing services for global sovereign, corporate and financial institution clients in the areas of equity financing, debt financing, structured finance, acquisition finance and so forth, and has initiated and participated in major global cross-border financing projects in various fields covering financial institutions, industrials, telecommunications, healthcare, transportations, business services, etc., and established good business relationships with large and medium-sized customers at home and abroad.” Bank of Communications’s balance sheet has around $1.84 trillion in total assets, which makes it one of the largest investment companies in the world.
Barclays PLC (NYSE:BCS) is a British universal bank with $1.87 trillion in assets that supports small businesses with retail banking services. Barclays PLC (NYSE:BCS) also supports larger businesses and institutions with its corporate and investment bank. Given the uncertain economic climate, Barclays PLC (NYSE:BCS)’s investment banking division could face headwinds in the near term but still has growth potential in the long term.
Wells Fargo & Company (NYSE:WFC) is one of the United States’ largest banks with total assets of $1.95 trillion. In addition to having a strong retail bank, Wells Fargo & Company (NYSE:WFC) has a corporate & investment banking division that provides clients with strategic advice and a comprehensive suite of services. Wells Fargo & Company (NYSE:WFC) shares are down around 6.3% year to date given the headwinds in 2022.
15. Mizuho Financial Group
Total Assets: $1.96 trillion
Mizuho Financial Group is one of Japan’s largest banks with total assets of $1.96 trillion. The bank has substantial scale with around 54,000 employees and operations in 34 countries. Mizuho Financial Group’s investment bank offers services such as industry coverage, structured financing solutions, interest-rate hedging and underwriting.
14. Postal Savings Bank of China
Total Assets: $1.98 trillion
Postal Savings Bank of China is a Chinese state owned bank with total assets of $1.98 trillion. Given its substantial business in rural areas, Postal Savings Bank of China helps economic growth in the country’s less developed areas and plays a positive role in terms of financial inclusion.
13. Japan Post Bank
Total Assets: $2 trillion
Japan Post Bank has Japan’s largest customer base with around 120 million accounts. The bank is also one of the largest financial institutions in Japan given its total assets of $2 trillion. Japan Post Bank offers various financial services such as access to Japanese government bonds, Japanese corporate bonds, and foreign corporate bonds that can finance projects and company growth in Japan and internationally.
12. Sumitomo Mitsui Financial Grp, Inc. (NYSE:SMFG)
Total Assets: $2.18 trillion
Sumitomo Mitsui Financial Grp, Inc. (NYSE:SMFG) is a leading Japanese bank with $2.18 trillion in total assets. The company supports business development in Japan and around the world with Sumitomo Mitsui Banking Corporation. The bank provides equity research and helps connect corporations with capital markets. Sumitomo Mitsui Financial Grp, Inc. (NYSE:SMFG) ranks #12 on our list of Top 20 Investment Companies in the World.
Citigroup Inc. (NYSE:C) is one of the big four American banks with total assets of $2.29 trillion. As a giant banking conglomerate, the company has a global investment bank that provides banking, capital markets, and advisory services. Year to date, Citigroup Inc. (NYSE:C) shares have declined 20.5% given the macroeconomic headwinds. Citigroup Inc. (NYSE:C) nevertheless has growth potential if global economic growth increases again.
10. Crédit Agricole Group
Total Assets: $2.67 trillion
Crédit Agricole Group is a leading French bank with $2.67 trillion in assets. In addition to being the number one retail bank in France, Crédit Agricole Group offers its clients a wide range of services in capital markets, investment banking, structured finance, and corroborate banking. Given its scale and assets, Crédit Agricole Group ranks #10 on our list of Top 20 Investment Companies in the World.
9. BNP Paribas
Total Assets: $2.91 trillion
BNP Paribas is one of France’s largest banks with total assets of $2.91 trillion. Given its substantial assets, the company has around 190,000 employees and a presence in 65 countries. BNP Paribas helps small, medium, and large corporations access the capital markets along with other financial services.
HSBC Holdings plc (NYSE:HSBC) is one of the largest banks in the world with total assets of $2.95 trillion. HSBC Holdings plc (NYSE:HSBC) helps businesses grow by offering capital market services in addition to many other financial services. HSBC Holdings plc (NYSE:HSBC) shares are down 7.9% due to macroeconomic headwinds.
Bank of America Corporation (NYSE:BAC) is one of the largest American banks in the world with total assets of $3.17 trillion that offers services to around 3 million small business households. Bank of America Corporation (NYSE:BAC) also offers services to many corporations and institutions given the company’s purchase of Merrill Lynch in 2008. Bank of America Corporation (NYSE:BAC) shares are down 16.8% year to date given the broader market weakness.
6. Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG)
Total Assets: $3.18 trillion
Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG) is Japan’s largest bank by assets. Given its scale, Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG) has a considerable corporate & Investment Banking business that offers loan syndication, structured finance, securitzation, and other investment banking services. Furthemore, Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG) offers individual customer and corporate banking services.
JPMorgan Chase & Co. (NYSE:JPM) is the United States’ largest bank with $3.74 trillion in assets. In addition to having a leading consumer bank, JPMorgan Chase & Co. (NYSE:JPM) has a leading investment bank that helps corporations, governments, and institutions access the capital markets. Given its strong balance sheet, JPMorgan Chase & Co. (NYSE:JPM) is in a good position to navigate any economic slowdown.
4.Bank of China
Total Assets: $4.21 trillion
Bank of China is the world’s fourth-largest bank by assets and one of China’s big four state-owned banks. With $4.21 trillion in assets, the Bank of China offers many things to businesses in the nation. The bank describes itself, as “As China’s most globalized and integrated bank, Bank of China has a well-established global service network with institutions set up across the Chinese mainland as well as in 57 countries and regions. It has established an integrated service platform based on the pillars of its corporate banking, personal banking, financial markets and other commercial banking business, which covers investment banking, direct investment, securities, insurance, funds, aircraft leasing and other areas, thus providing its customers with a comprehensive range of financial services.”
3. Agricultural Bank of China
Total Assets: $4.58 trillion
Agricultural Bank of China is one of China’s biggest banks given its total assets of $4.58 trillion. Given that Agricultural Bank of China is state owned, the bank uses its balance sheet to help the Chinese economy grow through loans and investments.
2. China Construction Bank
Total Assets: $4.76 trillion
China Construction Bank is one of the big four Chinese state banks that helps finance many projects and companies across China. Given its scale and $4.76 trillion in total assets, China Construction Bank provides services to hundreds of millions of personal and corporate customers including many small and medium sized businesses. China Construction Bank also has a subsidiary that offers investment banking services.
1. Industrial & Commercial Bank of China
Total Assets: $5.54 trillion
With total assets of $5.54 trillion, the Industrial & Commercial Bank of China, also known as ICBC, is the largest bank in China. As a state owned bank, Industrial & Commercial Bank of China loans money for investment projects that build infrastructure in China and internationally. Industrial & Commercial Bank of China also loans money to small and medium sized businesses that could increase consumer demand. Given its assets, Industrial & Commercial Bank of China ranks #1 on our list of Top 20 Investment Companies in the World.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets climbed to their best week of the year.
“It’s been almost a complete opposite or retracement of what we saw last week,” said Philip Petursson, chief investment strategist at IG Wealth Management.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
While last week saw a “healthy” pullback on weaker economic data, this week investors appeared to be buying the dip and hoping the central bank “comes to the rescue,” said Petursson.
Next week, the U.S. Federal Reserve is widely expected to cut its key interest rate for the first time in several years after it significantly hiked it to fight inflation.
But the magnitude of that first cut has been the subject of debate, and the market appears split on whether the cut will be a quarter of a percentage point or a larger half-point reduction.
Petursson thinks it’s clear the smaller cut is coming. Economic data recently hasn’t been great, but it hasn’t been that bad either, he said — and inflation may have come down significantly, but it’s not defeated just yet.
“I think they’re going to be very steady,” he said, with one small cut at each of their three decisions scheduled for the rest of 2024, and more into 2025.
“I don’t think there’s a sense of urgency on the part of the Fed that they have to do something immediately.
A larger cut could also send the wrong message to the markets, added Petursson: that the Fed made a mistake in waiting this long to cut, or that it’s seeing concerning signs in the economy.
It would also be “counter to what they’ve signaled,” he said.
More important than the cut — other than the new tone it sets — will be what Fed chair Jerome Powell has to say, according to Petursson.
“That’s going to be more important than the size of the cut itself,” he said.
In Canada, where the central bank has already cut three times, Petursson expects two more before the year is through.
“Here, the labour situation is worse than what we see in the United States,” he said.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
— With files from The Associated Press
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
