HSBC has beaten its rivals to become the West’s biggest bank, according to reports from Reuters.
Despite being one of the first banks to be exposed to the effects of the sub-prime crisis, HSBC has capitalised on the recent problems of leading rivals meaning its shares have outperformed.
HSBC now becomes the only non-Chinese bank with a market value of over $200 billion after rival Citigroup saw its shares plummet after announcing massive write-downs and high-profile departures, including its CEO. Citigroup’s market value has dropped below $180 billion while Bank of America’s value dropped below $200 billion on Monday.
HSBC now stands at a market value of about $220 million, ranking only behind the three big banks in China, the biggest being ICBC at about $360 billion. Analysts have said that HSBC’s strong capital position has allowed its shares to outperform its peers in turbulent markets.