The world’s top 25 global banks reported 9.4% year-on-year (YoY) revenue growth in 2024 despite global economic pressures, with Sberbank Rossii, BBVA, and UBS Group standing out as key performers. However, profit margins were mixed, as many banks faced higher costs, regulatory tightening, and geopolitical uncertainty, highlighting the growing gap between revenue performance and overall financial health, finds GlobalData, a leading data and analytics company.
Most of the top 25 banks reported YoY growth in their top-line performance, with Sberbank Rossii and BBVA emerging as top performers, posting a growth of 54% and 30.3%, respectively. UBS Group also registered a growth of 22.3%.
Murthy Grandhi, Company Profiles Analyst at GlobalData, comments: “Sberbank Rossii emerged as the top performer in revenue defying broader geopolitical and macroeconomic pressures. The bank reported double-digit revenue growth, supported by a strong rebound in Russia’s domestic economy, stabilizing inflation, and high interest margins but its net income sharply declined into negative territory, reflecting the combined impact of macroeconomic instability, currency depreciation, and mounting operational constraints due to international sanctions.”
Similarly, BBVA achieved a 28.9% growth in interest income, driven by its geographic diversification, particularly in Mexico and Turkey, where interest margins widened significantly.
Another bank to deliver outstanding results was UBS Group, with revenue jumping 22.3% YoY, and a robust five-year CAGR of 17.4%—largely reflecting its landmark takeover of Credit Suisse. However, net income plummeted by over 80%, underscoring the short-term cost burdens and integration risks associated with the acquisition.
Top Chinese banks—ICBC, China Construction Bank, Agricultural Bank of China, and Bank of China—reported modest revenue and income growth. ICBC’s 2024 revenue marginally declined (-0.6% YoY), while Agricultural Bank posted the strongest five-year CAGR in assets among the Chinese peers (8.8%). Margin compression due to policy-induced rate caps and slower domestic economic growth weighed on profitability. Nonetheless, their asset bases continue to expand steadily, reflecting domestic dominance and strong government backing.
JPMorgan Chase led the revenue charts with an impressive $278.9 billion in 2024, representing a YoY growth of 16.5% and a five-year CAGR of 16.5%. The surge was underpinned by elevated net interest income amid sustained high rates and robust trading performance. Its net income reached $58.5 billion (18% YoY growth), with asset growth moderating to 3.3%, reflecting balance sheet prudence amid tightening regulations.
Bank of America and Citigroup also benefitted from the high-rate cycle. Citigroup notably recorded a 13.96% revenue CAGR, with 2024 revenues at $170.8 billion. However, asset contraction (-2.4% YoY) reflects restructuring and divestments in underperforming regions.
European banks, long plagued by negative rates and fragmented markets, appear to be rebounding. BNP Paribas and HSBC posted robust revenue CAGR of 13.1% and 14% respectively, supported by diversified global operations and cost rationalizations. Notably, Societe Generale and Credit Agricole recorded revenue CAGR above 17%, with net income rebounds of over 60% YoY, albeit from low bases. These turnarounds suggest successful strategic pivots and a more favorable interest rate environment in the Eurozone.
Grandhi concludes: “Looking ahead, global banks face a mixed landscape. Easing inflation could trigger interest rate cuts in the US and Europe, potentially impacting net interest margins. However, this may be offset by the revival in credit demand and easing capital costs. Regulatory tightening, especially in the US and China, will challenge profitability. Additionally, banks exposed to emerging markets must navigate currency volatility and political instability.
“Digital transformation and green financing will remain pivotal themes. Institutions investing in fintech partnerships, AI-led customer engagement, and ESG-aligned lending are likely to outperform.”
