From 2016 through 2021, HSBC was the largest bank in the United Kingdom in terms of market capitalization. HSBC had a market capitalization of around 107.2 billion euros as of December 31, 2021, which was the firm’s lowest market cap over the whole period studied, but still greater than any other European bank at the time.
Why was the market capitalization of HSBC so low in 2020?
Due to the coronavirus pandemic, the market capitalization of all of Europe’s top banks fell at the start of 2020. In truth, the pandemic had a significant impact on the global banking business, with a significant decline in the global aggregate market cap in 2020, but it rebounded significantly in 2021. The same thing happened with all of the world’s top banks, whose market capitalization sank significantly from the onset of the pandemic in early 2020, before gradually returning to pre-pandemic levels a year later.
In the United Kingdom, the banking industry
These five huge chartered banks control the banking industry in the United Kingdom. They have, however, faced increased competition in recent years from digital “challengers” such as Starling and Monzo Bank, to which retail clients are increasingly switching. HSBC’s size is astonishing, despite losing customers to other banks in its own nation. It is not only the largest bank in the United Kingdom, but also one of the world’s largest.
Banking Industry Valuation in 2022
As you can see in below chart, All major banks suffered major sell of in first half of financial year 2022. They combine lost as much as $40 Billion Euro. though Central bank in UK plan to raise interest rate which ideally benefits to Banks , recession fears and slowing economy is dragging the market cap down for these major banks in UK.
Here is the Data in the excel format if you are old style Geek and not really into fancy charts.
| Bank Name | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
| HSBC Holdings | 117.06 | 151.03 | 165.97 | 150.17 | 107.23 | 107.2 | 86.91 |
| Lloyds Banking Group | 62.11 | 55.98 | 51.81 | 45.36 | 34.43 | 40.33 | 30.30 |
| Barclays | 37.2 | 44.13 | 39.07 | 29.47 | 34.67 | 37.15 | 26.60 |
| NatWest Group | 37.74 | 35.3 | 38.09 | 30.08 | 27.41 | 27.91 | 28.21 |
| Standard Chartered | 21.96 | 27.85 | 28.40 | 26.03 | 19.73 | 16.4 | 18.40 |
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