Source: GlobalData
India and Japan drive revenue growth among top 20 APAC banks as Chinese giants slow down, reveals GlobalData
Posted in Business Fundamentals
The top 20 Asia-Pacific (APAC) banks saw a modest 6.5% increase in combined revenue from $1.6 trillion in 2023 to $1.75 trillion in 2024, driven by exceptional growth from Indian and Japanese banks. On the other hand, several Chinese banks faced stagnation or declines amid tighter regulations and slowing credit demand. This shift highlights evolving regional dynamics and signals changing leadership in APAC’s banking landscape, reveals GlobalData, a leading data and analytics company.
Murthy Grandhi, Company Profiles Analyst at GlobalData, comments: “APAC banking landscape witnessed a striking shift in momentum in 2024, as Indian and Japanese banks delivered powerful revenue growth, some of the China’s traditionally dominant institutions recorded either marginal gains or outright declines. It also reveals not just a reshuffling of leaders, but also deeper structural signals driven by macroeconomic realignments, domestic policy shifts, and evolving capital flows.”
Only three banks achieved revenue growth exceeding 40% in 2024: India’s HDFC Bank led with an impressive 89.5% year-on-year (YoY) increase, while Japan’s Sumitomo Mitsui Financial and Mizuho Financial followed with growth rates of 42.8% and 41.6%, respectively
Grandhi explains: “HDFC Bank’s rise can be attributed to its merger with HDFC Ltd., robust retail lending growth, and digital banking expansion. Likewise, State Bank of India recorded a 19.4% jump to $72 billion, fueled by rising credit demand in infrastructure, manufacturing, and rural segments.
“Japanese banks staged a strong comeback after years of modest performance. This surge is underpinned by enhanced cross-border M&A advisory, corporate lending in Southeast Asia, and increased activity in the green finance space.”
Japan-based Mitsubishi UFJ Financial posted an 11.7% increase to $81.7 billion, reflecting stronger domestic lending and strategic international acquisitions.
Chinese banks continued to dominate the revenue leaderboard, securing 11 of the top 20 positions. ICBC led with $227.9 billion in revenue, though it posted a slight YoY contraction of -0.6%. Similarly, China Construction Bank ($198.1 billion, -2%), Postal Savings Bank of China ($81.7 billion, -0.7%), and Shanghai Pudong Development Bank ($49.2 billion, -4.4%) reflected a slowdown. The declines stem from reduced credit demand, property sector headwinds, and the cautious lending stance amid tighter regulatory controls.
Nevertheless, Bank of China showed resilience with a 2.6% increase in revenue to $177.6 billion, supported by strong offshore financing operations and currency settlements, benefiting from the yuan’s expanding role in trade settlements.
Grandhi concludes: “As the global financial system braces for a volatile 2025, APAC banks are navigating a complex matrix of geopolitical tensions, tariff escalations, and tightening liquidity. The US-China trade recalibration, semiconductor export restrictions, and ongoing regional disputes could dampen cross-border capital flows and increase regulatory compliance costs.
“However, banks with strong domestic franchises, digital agility, and diversified international exposure, especially in India, Japan, and Australia, are better positioned to weather uncertainty and tap into structural growth trends, including fintech adoption, infrastructure financing, and ESG-related lending. The year ahead will test these institutions not just on balance sheet strength but on their ability to adapt strategically in an evolving global order.”