What Is The Market Share Of The 5 Largest Custody Banks In The Global Custody Banking Industry?

The 5 largest global custody banks reported more than $100 trillion in assets under custody and administration (AUC/A) at the end of Q1 2016 – representing a market share of almost 60%. Notably, the four largest custody banks are all based in the U.S., and are responsible for well over half the industry.

The custody banking industry has seen steady inflows over recent years, as stricter regulatory requirements have forced financial institutions around the globe to outsource a bulk of their services to custodians. However, the total size of global custody assets shrank from record levels in mid-2015 over the second half of last year, as weak global equity market conditions hurt asset valuations. The situation remained lukewarm over the first quarter of 2016, because of which the size of AUC/A for the custody banks largely remained flat quarter-on-quarter.

However, as economic conditions improve worldwide, and as these banks continue to receive additional mandates for custody services, we expect the AUC/A figure to witness strong growth over the second half of 2016.

Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment/ ask questions on the comment section
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to the full Trefis analysis for BNY Mellon | State Street | JPMorgan | Citigroup

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