Global Commercial Banks - Market Research Report (2014-2029)
New York, United States
Last Updated: June 2024
J5511-GLRevenue
$2.8tr
Past 5-Year Growth
Profit
$XXX.Xbn
Employees
7m
Businesses
10,080
Wages
$XXX.Xbn
Global Commercial Banks industry analysis
The industry closely follows global economic performance since demand for loans is heavily influenced by business and consumer confidence as well as the level of activity that requires financing. The strong global economic performance fueled by the United States and emerging markets, such as China and South East Asia, are expected to improve from increased aggregate private investment, which has supported loan origination. Global commercial banks revenue has been growing at a CAGR of 0.8% over the past five years – including an estimated 0.1% drop in the current year – and is expected to total $2.8 trillion in 2023, with profit set to drop to 23.4%.Strong performance in the United States and China for most of the last five years has bolstered economic activity. Low interest rates have fomented loan origination, primarily from businesses taking advantage of the opportunity and individuals taking out residential mortgages. This low interest rate environment has hurt industry profit, which has supported efforts to consolidate operations. The interest rate environment has reversed due to rising inflation. This is anticipated to increase industry profit towards the end of the period.Industry revenue is expected to grow as the global economy continues to recover from the pandemic and tighten its monetary policy. This monetary tightening will raise interest rates into the outlook period to the benefit of the industry. Strong economic performance in emerging markets is anticipated to foment growth of commercial banking activity in various countries and aid faster revenue growth over the next five years. But geopolitical tensions are expected to ramp up and pose an important threat to growth. Global commercial banks revenue is expected to drop at a CAGR of 3.5% to $3.3 trillion over the five years to 2028, when profit is estimated to grow to 24.2%.
Trends and Insights
- Despite the world settling back to normal, the global economy is still readjusting to a post-COVID-19 world. Global commercial banks are focusing on flexibility in order to succeed in this new environment.
- Business loans are primarily offered to customers through client relationship teams and various product partners that are associated with commercial banks. As interest rates keep increasing globally, demand for real estate lending products will likely dip.
- Europe’s share of business locations has declined. Asset values have dipped as a result of consumer and business confidence falling along with their wealth, as many entities have moved assets elsewhere to more stable economies in other regions.
- The subprime mortgage crisis caused significant merger and acquisition activity. The crisis is still affecting the industry to this day.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 0.8 % over the past five years, to reach an estimated $2.8tr in 2024.
Trends and Insights
The pandemic's lingering effects on global business and consumer activity
- The COVID-19 pandemic shook both consumer and business confidence, which are crucial for industry demand.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Steady consumer confidence growth will sustain industry growth
- The next five years, assuming another black swan event doesn't occur, are likely to be more stable than the previous.
Biggest companies in the Global Commercial Banks
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Wells Fargo & Company | 338,900.0 | 76,800.0 | 22.7 | |
JPMorgan Chase & Co. | 246,700.0 | 44,400.0 | 18.0 | |
Bank of America Corporation | 229,400.0 | 299,200.0 | 130.4 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Other, Consumer loans and Commercial and industrial loans. Other is the largest segment of the Global Commercial Banks.
Trends and Insights
Business loans might see a slight dip as interest rates rise
- Business loans are primarily offered to customers through client relationship teams and various product partners that are associated with commercial banks.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Global Pension Funds
Complementors
- Global Investment Banking & Brokerage
- Global Life & Health Insurance Carriers
- Global Reinsurance Carriers
International industries
- Commercial Banking in the US
- Savings Banks & Thrifts in the US
- Private Banking Services in the US
- Commercial Banking in Canada
- National and Regional Commercial Banks in Australia
Table of Contents
About this industry
Industry definition
Operators in this industry provide commercial, industrial and consumer loans, as well as offer deposit facilities to their customers. Industry operators also accept term deposits, extend mortgage and real estate financing and invest in high-grade securities. Income from investment-related activities is excluded from the industry.
What's included in this industry?
Providing commercial and industrial mortgagesProviding residential mortgagesProviding home equity loansProviding vehicle loansCompanies
Wells Fargo & CompanyJPMorgan Chase & Co. Bank of America CorporationPurchase this report to view all 4 major companies in this industry.
Related Terms
DEBENTUREESCROWLOAN LOSS PROVISIONPerformance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Despite the world settling back to normal, the global economy is still readjusting to a post-COVID-19 world. Global commercial banks are focusing on flexibility in order to s...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Business loans are primarily offered to customers through client relationship teams and various product partners that are associated with commercial banks. As interest rates ...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Europe’s share of business locations has declined. Asset values have dipped as a result of consumer and business confidence falling along with their wealth, as many entities ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Business Locations Charts
- Share of global output by region in 2024
- Share of population compared to output in each region in 2024
- Data tables
- Share of global output by region in 2024
- Detailed analysis
- Geographic spread of the industry across Global, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The subprime mortgage crisis caused significant merger and acquisition activity. The crisis is still affecting the industry to this day.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Major companies are adapting to higher interest rates and less liquidity. After nearly 15 years of quantities easing, the Federal Reserve is reducing its balance sheet to hel...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Wells Fargo & Company's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of JPMorgan Chase & Co. 's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Bank of America Corporation's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Wells Fargo & Company, and factors influencing its performance in the industry
- Description and key data for JPMorgan Chase & Co. , and factors influencing its performance in the industry
- Description and key data for Bank of America Corporation, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Regulation is still heavily influenced by the Great Recession. Governments want to ensure economic crises don’t arise again.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
A low net interest margin in the US and Europe as a result of loose monetary policy squeezed profit for commercial banks in 2020. But the increased interest rates across the ...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources globally include:
- United Nations Comtrade
- Organization for Economic Cooperation & Development
- World Bank
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Global Commercial Banks industry in Global in 2024?
The market size of the Global Commercial Banks industry in Global is $2.8tr in 2024.
How many businesses are there in the Global Commercial Banks industry in 2024?
There are 10,080 businesses in the Global Commercial Banks industry in Global, which has declined at a CAGR of 0.4 % between 2019 and 2024.
Has the Global Commercial Banks industry in Global grown or declined over the past 5 years?
The market size of the Global Commercial Banks industry in Global has been growing at a CAGR of 0.8 % between 2019 and 2024.
What is the forecast growth of the Global Commercial Banks industry in Global over the next 5 years?
Over the next five years, the Global Commercial Banks industry in Global is expected to grow.
What are the biggest companies in the Global Commercial Banks market in Global?
The biggest companies operating in the Global Commercial Banks market in Global are Wells Fargo & Company, JPMorgan Chase & Co. and Bank of America Corporation
What does the Global Commercial Banks in Global include?
Providing commercial and industrial mortgages and Providing residential mortgages are part of the Global Commercial Banks industry.
Which companies have the highest market share in the Global Commercial Banks in Global?
The company holding the most market share in Global is Wells Fargo & Company.
How competitive is the Global Commercial Banks industry in Global?
The level of competition is high and increasing in the Global Commercial Banks industry in Global.
