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Banks lose US$635 billion

Global banks have cumulatively lost around US$635.33 billion in market capitilisation between December 2019 and August 2020, according to research from Buy Shares.

The data indicated that 14 of the world's largest major global banks have suffered huge market losses as a result of the COVID-19 economic shutdowns.

The research said the US's Wells Fargo was the biggest loser, suffering a -56.24% change in market capitilisation, followed by Spain's Banco Santander at -46.16%.

The data showed that J.P.Morgan still held a solid market capitalisation of $437.2 billion in December 2019 and $305.44 billion as of August 2020.

Other notable banks to take a percentage hit were the Bank of China (-23.68%), BNP Paribas (-26.2%) and MUFG (-23%).

Buy Shares said banks went into the pandemic stronger and it might take time before they return to normal profitability.

"The pandemic led to a slump in various sectors of the economy and it was evident under the stock markets. The crisis generated massive instability and high volatility in global capital markets," it said.

"The financial sector was among the most impacted leading to the drop in market capitalisation."

Many Chinese institutions made the list including, the Industrial & Commercial Bank of China (-27.65), China Construction Bank (-18.95) and the Agricultural Bank of China (-23.31%).

Japanese banks also made a heavy presence with the Japan Post Bank (-19.18%), Mizuho Financial Group (-11.33%) and Sumitomo Mitsui Financial Group (-20.59%).

Together, the total losses amount to US$635.33 billion in market capitilisation during the COVID-19 outbreak.

Read our full COVID-19 news coverage and analysis here.

Read more: Agricultural Bank of ChinaBanco SantanderBNP ParibasChina Construction BankCommercial Bank of ChinaJapan Post BankMizuho Financial GroupSumitomo Mitsui Financial GroupWells Fargo
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