|Last Quarterly Update:||11/28/2016|
|SIC Codes:||6021, 6022, 6035, 6036, 6061, 6062|
|NAICS Codes:||52211, 52212, 52213|
|Industry Overview||Trends & Challenges||Industry Forecast|
|Quarterly Industry Update||Call Prep Questions||Website & Media Links|
|Business Challenges||Financial Information||Glossary & Acronyms|
Companies in this industry accept deposits and make commercial, industrial, and consumer loans. Major companies include Bank of America, Citibank, JPMorgan Chase, Wells Fargo, and Navy Federal Credit Union (all based in the US), as well as Banco Santander (Spain), China Construction Bank, HSBC Holdings (UK), and Industrial and Commercial Bank of China.
Worldwide, the banking industry generates revenue of about $3.8 trillion annually, according to consulting firm McKinsey & Company. North America accounts for nearly a third of global revenue, followed by Western Europe (19%), and China (18%). China -- home to four of the world's five largest banks -- represents a huge growth opportunity for banks, as does the massive unbanked population in India.
The US banking industry includes about 5,300 commercial banks, 840 savings banks, and 5,950 credit unions with combined annual revenue of about $465 billion. Commercial banks have about $15.2 trillion in assets, savings banks $1.1 trillion, and credit unions $1.2 trillion.
Demand for banking services is closely tied to economic activity and the level of interest rates. The profitability of individual banks depends on marketing skills, efficient operations, and good risk management. Large economies of scale exist in some segments of the industry, which has encouraged industry consolidation. While smaller banks and credit unions can compete successfully in segments where customer service or knowledge of the local market is more important, big banks are ...
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