Three of the world's 10 largest banks are Chinese, each with a market capitalisation of more than $100 billion. ICBC is number two on the list after raising $21.9 billion through an IPO last year. Bank of China, which also went public last year, is sixth, and China Construction Bank, seventh.
The report also found that the banks had become very competitive, yielding much higher returns for their investors than their western counterparts. Russia's Sberbank currently boasts a five-year shareholder return of 12.9% per year (adjusted for risk and local market influence), the highest of any bank featuring in the report.
Tjun Tang, one of the authors and a BCG partner, predicts that BRIC-country banking revenues will increase by an average of 8% (on an inflation-adjusted basis) per year until 2015. However, he also warned that "developing markets are more volatile, and if confidence goes down, valuations can change very quickly".
Bigger, Better Banking is BCG's fifth annual study of the shareholder value creation in the banking industry globally.
Bigger, Better Banking
Boston Consulting Group
Review by Emilie Filou