Bulletin
Investor Alert

New York Markets Close in:

The Wall Street Journal Archives | Email alerts

July 7, 2016, 6:09 p.m. EDT

The big bank bloodbath: losses near half a trillion dollars

At 20 big banks, plunging share prices this year have erased a quarter of their combined market value

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    JPMorgan Chase & Co. (JPM)
  • X
    Wells Fargo & Co. (WFC)
  • X
    Bank of America Corp. (BAC)

or Cancel Already have a watchlist? Log In

By David Reilly


Getty Images

Big banks are nearly half a trillion dollars in the hole.

Since the start of 2016, 20 of the world’s bigger banks have lost a quarter of their combined market value. Added up, it equals about $465 billion, according to FactSet data.

Brexit isn’t all to blame. True, bank stocks have plummeted since the U.K. voted last month to leave the European Union. But they have been losing value since the start of the year, when a group of factors—the Chinese economy, the path of U.S. interest rates, oil prices—weighed on the markets.

More than pride is at stake. Sharp share-price falls will make it much more difficult, and expensive, for banks to raise capital if that is what is ultimately needed to shore up their balance sheets.

Just as bad, a serious decline in market value can breed inaction among bank executives. Instead of selling equity when they can, executives may wait for share prices to recover, only to find themselves in a worse situation as stocks drop even further.

Another potential worry: As bank share prices decline, employees get antsy. Compensation packages that include stock options or restricted stock suddenly become a lot less attractive.

To get a handle on the severity of 2016 for banks, The Wall Street Journal examined the biggest U.S., U.K. and Swiss banks, some of the biggest European ones, as well as the biggest bank in each of China and Japan.

The group included: J.P. Morgan Chase & Co. /zigman2/quotes/205971034/composite JPM +2.11% , Wells Fargo & Co. /zigman2/quotes/203790192/composite WFC +1.32%  , Bank of America Corp. /zigman2/quotes/200894270/composite BAC +1.61%  , Citigroup Inc. /zigman2/quotes/207741460/composite C +1.81%  , Goldman Sachs Group /zigman2/quotes/209237603/composite GS +2.06%  , Morgan Stanley /zigman2/quotes/209104354/composite MS +2.09%  , Royal Bank of Scotland PLC  , HSBC Holdings /zigman2/quotes/208272822/composite HSBC +2.07%  , Barclays PLC /zigman2/quotes/208409333/delayed UK:BARC +2.80%  , Standard Chartered PLC /zigman2/quotes/200125072/delayed UK:STAN +2.30%  , UBS Group AG /zigman2/quotes/206172872/composite UBS +1.24%  , Credit Suisse Group AG /zigman2/quotes/202835784/composite CS +2.48%  , BNP Paribas SA /zigman2/quotes/206351084/delayed FR:BNP +3.05%  , Credit Agricole SA /zigman2/quotes/209264506/delayed FR:ACA +1.93%  , Société Générale SA /zigman2/quotes/206663756/delayed FR:GLE +3.25%  , UniCredit SpA /zigman2/quotes/200769686/delayed IT:UCG +3.61%  , Deutsche Bank AG /zigman2/quotes/201442689/delayed XE:DTE +1.55%  , Banco Santander SA /zigman2/quotes/205677933/delayed ES:SAN +3.70%  , Industrial and Commercial Bank of China Ltd. and Mitsubishi UFJ Financial Group Inc. /zigman2/quotes/207520099/delayed JP:8306 +1.26%

Read the full version of this article at WSJ.com.

/zigman2/quotes/205971034/composite
US : U.S.: NYSE
$ 149.62
+3.09 +2.11%
Volume: 7.73M
Jan. 26, 2022 12:01p
P/E Ratio
9.76
Dividend Yield
2.67%
Market Cap
$433.04 billion
Rev. per Employee
$497,080
loading...
/zigman2/quotes/203790192/composite
US : U.S.: NYSE
$ 54.30
+0.71 +1.32%
Volume: 15.03M
Jan. 26, 2022 12:01p
P/E Ratio
10.89
Dividend Yield
1.48%
Market Cap
$208.24 billion
Rev. per Employee
$306,881
loading...
/zigman2/quotes/200894270/composite
US : U.S.: NYSE
$ 46.16
+0.73 +1.61%
Volume: 18.96M
Jan. 26, 2022 12:01p
P/E Ratio
12.93
Dividend Yield
1.82%
Market Cap
$371.80 billion
Rev. per Employee
$440,615
loading...
/zigman2/quotes/207741460/composite
US : U.S.: NYSE
$ 65.27
+1.16 +1.81%
Volume: 8.87M
Jan. 26, 2022 12:01p
P/E Ratio
6.47
Dividend Yield
3.13%
Market Cap
$127.22 billion
Rev. per Employee
$381,305
loading...
/zigman2/quotes/209237603/composite
US : U.S.: NYSE
$ 348.60
+7.05 +2.06%
Volume: 1.22M
Jan. 26, 2022 12:01p
P/E Ratio
5.87
Dividend Yield
2.30%
Market Cap
$114.35 billion
Rev. per Employee
$1.60M
loading...
/zigman2/quotes/209104354/composite
US : U.S.: NYSE
$ 101.11
+2.07 +2.09%
Volume: 4.68M
Jan. 26, 2022 12:01p
P/E Ratio
12.57
Dividend Yield
2.77%
Market Cap
$177.72 billion
Rev. per Employee
$898,838
loading...
/zigman2/quotes/208272822/composite
US : U.S.: NYSE
$ 35.22
+0.72 +2.07%
Volume: 1.31M
Jan. 26, 2022 12:01p
P/E Ratio
12.69
Dividend Yield
3.10%
Market Cap
$139.31 billion
Rev. per Employee
$249,834
loading...
/zigman2/quotes/208409333/delayed
UK : U.K.: London
202.20 p
+5.50 +2.80%
Volume: 32.11M
Jan. 26, 2022 4:35p
P/E Ratio
N/A
Dividend Yield
1.48%
Market Cap
£32.92 billion
Rev. per Employee
£261,699
loading...
/zigman2/quotes/200125072/delayed
UK : U.K.: London
524.00 p
+11.80 +2.30%
Volume: 5.04M
Jan. 26, 2022 4:35p
P/E Ratio
19.41
Dividend Yield
1.66%
Market Cap
£15.77 billion
Rev. per Employee
£167,202
loading...
/zigman2/quotes/206172872/composite
US : U.S.: NYSE
$ 18.84
+0.23 +1.24%
Volume: 3.32M
Jan. 26, 2022 12:01p
P/E Ratio
8.82
Dividend Yield
1.95%
Market Cap
$63.44 billion
Rev. per Employee
$486,296
loading...
/zigman2/quotes/202835784/composite
US : U.S.: NYSE
$ 9.29
+0.23 +2.48%
Volume: 4.68M
Jan. 26, 2022 12:01p
P/E Ratio
366.73
Dividend Yield
0.46%
Market Cap
$21.33 billion
Rev. per Employee
$649,972
loading...
/zigman2/quotes/206351084/delayed
FR : France: Euronext Paris
63.95
+1.89 +3.05%
Volume: 3.59M
Jan. 26, 2022 5:35p
P/E Ratio
10.34
Dividend Yield
4.16%
Market Cap
€76.56 billion
Rev. per Employee
€524,808
loading...
/zigman2/quotes/209264506/delayed
FR : France: Euronext Paris
13.33
+0.25 +1.93%
Volume: 6.21M
Jan. 26, 2022 5:35p
P/E Ratio
10.20
Dividend Yield
6.00%
Market Cap
€38.54 billion
Rev. per Employee
€677,640
loading...
/zigman2/quotes/206663756/delayed
FR : France: Euronext Paris
33.08
+1.04 +3.25%
Volume: 5.02M
Jan. 26, 2022 5:36p
P/E Ratio
9.13
Dividend Yield
1.66%
Market Cap
€24.97 billion
Rev. per Employee
€279,097
loading...
/zigman2/quotes/200769686/delayed
IT : Italy: Milan
13.65
+0.48 +3.61%
Volume: 18.34M
Jan. 26, 2022 5:35p
P/E Ratio
23.00
Dividend Yield
0.88%
Market Cap
€29.10 billion
Rev. per Employee
€253,457
loading...
/zigman2/quotes/201442689/delayed
XE : Germany: Xetra
16.21
+0.25 +1.55%
Volume: 10.93M
Jan. 26, 2022 5:38p
P/E Ratio
14.33
Dividend Yield
3.95%
Market Cap
€79.35 billion
Rev. per Employee
€474,972
loading...
/zigman2/quotes/205677933/delayed
ES : Spain: Madrid
3.14
+0.11 +3.70%
Volume: 85.40M
Jan. 26, 2022 5:38p
P/E Ratio
9.33
Dividend Yield
0.00%
Market Cap
€52.34 billion
Rev. per Employee
€332,697
loading...
/zigman2/quotes/207520099/delayed
JP : Japan: Tokyo
¥ 682.10
+8.50 +1.26%
Volume: 46.21M
Jan. 26, 2022 3:00p
P/E Ratio
7.59
Dividend Yield
4.10%
Market Cap
¥8438.64 billion
Rev. per Employee
¥38.21M
loading...

This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.