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Japan megabanks market cap drops in Q3; Indonesia small banks post worst returns

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Japan megabanks market cap drops in Q3; Indonesia small banks post worst returns

Japan's four biggest banks saw quarterly declines in their market capitalization in the third quarter, while small cap Indonesian banks dominated the worst performing bank stocks rankings.

Mitsubishi UFJ Financial Group Inc. saw its market cap fall 2.9% quarter over quarter to US$86.50 billion to take the seventh place in S&P Global Market Intelligence's ranking of the 20 largest Asia-Pacific banks by market capitalization. The two other Japanese megabanks, Sumitomo Mitsui Financial Group Inc. and Mizuho Financial Group Inc., both dropped one place to 14th and 19th place, respectively. JAPAN POST BANK Co. Ltd. saw a 3.3% decline in its market cap for the period.

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Industrial & Commercial Bank of China Ltd. was once again the largest bank in the region with a market capitalization of US$307.97 billion, up 15.2% from June-end. Three other Chinese lenders— China Construction Bank Corp., Agricultural Bank of China Ltd. and Bank of China Ltd. — made up the top four banks in terms of market capitalization. Nine Chinese lenders made it to the list.

Small Indonesian banks counted among some of the worst performing bank stocks in the quarter. PT Bank QNB Indonesia Tbk, with a market cap of US$272.5 million, was the worst performing bank with a negative total return of 38.8%. PT Bank Rakyat Indonesia Agroniaga Tbk was the biggest Indonesian lender on the list of the 15 worst performers, with a market cap of US$817.6 million and negative total return of 15.8%.

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Meanwhile, India's YES BANK Ltd. was the best performing bank stock for the quarter, with a total return of 28.5%. Indonesia-based PT Bank Tabungan Negara (Persero) Tbk was second with a total return of 21.2%, while China's Ping An Bank Co. Ltd. took the third spot with a total return of 20.0%. All of the 15 banks in the list of banks with best total returns in the third quarter have a market cap of more than US$1 billion with the exception of the Philippines' East West Banking Corp., which was also the only Philippine lender to make it to the list of best performers.

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The SNL Japan Bank Index performed the worst out of all regional indexes with a negative total return of 2.2% in the third quarter. The index had generated returns of 5.6% in the second quarter. On the other hand, the SNL Southeast Asia Bank Index generated the best returns in the quarter, with total returns of 2.4%.

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