Market capital is the value of a company’s outstanding shares and is a key measurement for investors to determine a company’s size. Market capital is calculated by multiplying the number of outstanding shares by the cost of one share. Of the forty plus banks trading on the London Stock Exchange (LSE), HSBC had the highest value of market capitalization at the end of 2019.
In 2018, the five largest banks in the UK accounted for over one third of banks total assets. Total assets are one of the main measures of a bank's prosperity and are defined as all assets owned by a bank. This includes, but is not limited to cash and balances, loans and advances to banks and customers, as well as debt securities. Four of the five largest banks in the world are situated in China, with the UK’s, and in fact Europe’s largest bank in terms of total assets coming in seventh.
Total revenue can be a great indicator of a banks' size because it indicates the annual income received from its normal activities through the sale of goods or, in the case for banks, services. Although banks headquartered in the UK have suffered in recent years without seeing growth in revenue, annual reports from 2018 showed significant improvement for several key players.