What Was The Market Share Of The 5 Largest Custody Banks At The End Of Q2?
The 5 largest global custody banks reported more than $102 trillion in assets under custody and administration (AUC/A) at the end of Q2 2016 – representing a market share of almost 60%.
AUC/A figures for individual banks is taken from their quarterly earnings releases
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As the custody banking business is characterized by slim operating margins, the industry is extremely concentrated, with incumbents looking to improve profitability through acquisitions in order to achieve greater economies of scale. Notably, the four largest custody banks are all based in the U.S., and are responsible for well over half the industry. While BNY Mellon and State Street are primarily focused on custody banking services to make money (with these services contributing 45-50% of their share value according to our estimates), JPMorgan and Citigroup have an extremely diversified business model (with custody banking services being responsible for less than 5% of total share value).
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