trending Market Intelligence /marketintelligence/en/news-insights/trending/ZZqi2sSfvD7KnUdvIkYsjw2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Evolution of leverage ratios since crisis: US banks top Asian, European peers

Street Talk Episode 68 - As many investors zig away from bank stocks, 2 vets in the space zag toward them

Street Talk Episode 66 - Community banks tap the debt markets while the getting is good

Street Talk Episode 67 - Veteran investor tabs Mick Mulvaney to help with latest financial stock-focused fund

Street Talk Episode 65 - Deferral practices trap US bank portfolios in purgatory

Evolution of leverage ratios since crisis: US banks top Asian, European peers

SNL Image

This article is a part of a series tracking the evolution of key bank metrics since the financial crisis.

Click here for a story on capital.

Click here for a story on headcount.

Click here for a story on asset size.

The world's biggest banks have seen their leverage ratios steadily increase over the years since the financial crisis, with U.S. banks still holding significantly higher ratios than their peers in Asia and Europe, according to data from S&P Global Market Intelligence.

Ten of the U.S. lenders in the 89-bank sample including Citigroup Inc. and Bank of America Corp. held double-digit leverage ratios — which, for the purposes of global comparison has been calculated below using total equity against total assets — as of the end of 2016.

Importantly, U.S. banks report their financials under U.S. GAAP, and are required to report the net amount of derivative assets on their balance sheets, which deflates there asset values and, as result, bolsters the ratio of total equity to total assets. If U.S. banks were to report on the same accounting principles as banks under IFRS, their total equity to total assets ratio would be lower than as shown below.

The 2016-end leverage ratios of European banks, which report under IFRS, ranged from 11.12% for PAO Sberbank of Russia at the top end down to 4.08% for Deutsche Bank AG.

In Asia, DBS Group Holdings Ltd. of Singapore held the highest leverage ratio at 9.75% as of 2016-end, while Japan-based Resona Holdings Inc. stood at the bottom of the table with a ratio of 4.02%, just 6 basis points below Deutsche Bank.

SNL Image

SNL Image

Click here to analyze a bank and its peers and for country-level banking and macroeconomic data.
Click here to set-up real-time alerts for data-driven articles on any region of interest.