Top Financial Services Companies By Total Assets Revealed
Top financial services companies ranked by total assets have been revealed in a recent report. Total assets come close to describing the business itself rather than the equipment it works with, according to the report. A bank's loans, securities and cash are its assets, funded by deposits it owes back to customers.
An insurer holds invested reserves against future claims, and a broker carries client cash and margin lending. The top 20 companies in this sector have seen significant growth in their total assets over the past year. JPMorgan Chase & Co. leads the list with $4424.90B in total assets, followed closely by Bank of America Corporation at $3411.74B.
The report notes that scale on the asset side is what a lender earns from, and the spread between what the loan book yields and what funding costs applies to a base many multiples of equity. This makes balance sheet growth the growth story here, rather than return on assets in the low single digits.