Chinese banks grab top ranks as HSBC goes out of Banker magazine's top 5 list

Chinese banks dominate an annual rank list compiled by The Banker magazine based on profits and capital strength, while British banks seem to have lost their earlier charm as global players.

The number one bank on the latest list is the Industrial and Commercial Bank of China (ICBC), which currently employs 462,282 people – more than the entire UK banking sector. The bank accumulated $59.1bn (£37.6bn, €52.9bn) in profits in 2014 – the highest among global banks.

Based on profits, Chinese banks claimed the top four spots in 2014. China Construction Bank, Agricultural Bank of China and Bank of China are the top profit-making banks in the world, following ICBC.

US bank Wells Fargo ranked fifth with a $33.8bn profit, followed by JPMorgan and HSBC.

Taking into account capital strength, US-based JPMorgan came in at number three, while Bank of America claimed the fifth place.

UK banks suffered big falls in their rankings due to better growth of its US and Chinese rivals. HSBC has fallen to the ninth place from the fifth in 2013, Barclays dropped to the 13<sup>th from the 12<sup>th and the Royal Bank of Scotland moved to the 19<sup>th place from the 15<sup>th.

In 2008, HSBC was ranked number one and RBS third by the magazine.

"At one time several UK banks were among a handful of truly global players," said The Banker's Brian Caplen.

"But since the financial crisis they have reduced their scope and are focussing on a fewer areas in a bid to restore profitability. We may have seen the end of the UK-based global bank."