Page 64 - Monocle Quarterly Journal Vol 1 Issue 1 Q4

BANKING
“Of the top 30 banks domiciled in G8 countries, the four largest US banks made just under a third of the total pro ts after tax made by all thirty.”
retrospective nes – like those levied against Wells Fargo’s competitors – will be forthcoming.
United States Banking in Comparison to the Rest of the World
If one looks at the largest four US lenders as a group, some fascinating conclusions can be made. Of the top 30 banks domiciled in G8 countries, the four largest US banks made just under a third of the total pro ts after tax made by all thirty.
In order of pro tability for the four years from the start of 2012: Wells Fargo, JP Morgan, Citigroup and Bank of America made USD 117 billion, USD 113 billion, USD 55 billion and USD 25 billion accumulated net pro t after tax respectively. at makes a total of USD 310 billion and change.
During the same four-year nancial period, the other 26 largest G8 domiciled banks made a total pro t after tax of USD 630 billion. e most pro table four non-US lenders were, in order of pro tability for the four-year period: HSBC Holdings, Mitsubishi UFJ Financial Group, Sberbank, and Mizuho Financial Group with net pro t after tax for the period of USD 83 billion, USD 61 billion, USD 47 billion and USD 42 billion respectively.
is makes a total of USD 234 billion in accumulated pro t versus the big four US banking accumulated pro ts of USD 310 billion. Whereas, however, over this four-year period, the US banks in consideration were ned a total amount of USD 97.5 billion – or in relative terms a staggering 31.4 percent of accumulated pro ts – the four non-US banks under consideration were only ned a total amount of USD 4.1 billion.
In relative terms this means that the four most pro table non-US banks over the past four nancial years have been ned only 1.75 percent of their net pro ts after tax whilst US banks have been ned 31.4 percent of their net pro t after tax.
It would clearly seem that any argument that the US authorities make use of newly penned banking legislation to mete out onerous nes against foreign banks is false, in spite of what Deutsche Bank executives and shareholders may claim. And it would also seem that in spite of the fact that the USD 14 billion ne currently being negotiated between
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