The World’s Best Banks 2024 – Introduction | Global financial magazine

10 Min Read

Global banking succeeded in 2023 despite the drama of bank failures.

The banking sector triumphed in 2023, a year that threatened to be catastrophic. Quick industry interventions have averted the nightmare scenario of a contagion-induced financial crisis, fueled by multiple bank failures in the US and Europe.

Last year’s mini-crisis of bank failures could best be seen as the result of idiosyncratic management fatigue at the ultimately rescued banks. However, the exposed risks inherent in app-based banking and the potential for bank collapse based on rapid mass withdrawals provided a wake-up call for the sector, especially among the fast-growing neobank challengers.

As a result, boosting current account savings and improving deposit stickiness became a key focus for bank CEOs last year.

As in 2022, the environment for net interest margins (NIM) was optimal thanks to the tight monetary policy of central banks. Last year brought a dynamic that had long been absent from the fray: a positive return on equity, which reemerged after having been negative or flat in the fifteen years since the 2007-2009 global financial crisis and last year averaged 9%.

Bank profits in the Asia-Pacific region soared, with many lenders posting record high net income – even in hardened Japan, where the banking sector’s 12-year battle against negative interest rates appears to be coming to an end as that easy money regime continues to recede. to the end. China was a notable absentee from the party: a fraught real estate sector tore sentiment apart.

Last year, the global banking sector showed greater cost efficiency and improved asset quality. Yet the direction of travel will be determined by economic growth; movements in the key interest rates of central banks, especially the US Federal Reserve; the demand for credit; and the pace of loan delinquencies.

See also  The Caucasus: pivot points | Global financial magazine

As the cost of capital came into focus and banks tried to reduce cost-to-income ratios (CTI), the sector lost 60,000 jobs globally last year, the most since the crisis. Investment banking portfolios collapsed as dealmaking and listings shriveled.

At the same time, traditional bank lending faced the threat of a booming private credit market developed by the non-bank financial sector. Leveraged buyout funds were more likely to be provided by a large hedge fund than by a large bank, and at more competitive rates.

Environmental, social and governance (ESG) issues remained a dominant theme: in Europe as a total operational input thanks to the tightening of the regulatory straitjacket, and in Asia, where companies and banks were catching up on the sustainability game during the beginning of an ESG-focused regulatory convergence manifesting itself in the region.

Sustainable finance dominates globally across the financing spectrum, whether it is a transition model, which dominates in Japan, or the full green/impact issuance typical of Europe and the US and emerging in the Asia-Pacific region Pacific, excluding Japan.

In Europe, banks had their most profitable year ever, thanks to the NIM effect, resilient asset quality and low CTI ratios. The Bank for International Settlements’ capital requirements were in poor shape, with more capital returned to banks’ shareholders last year than at any time since the crisis. —Jonathan Rogers

Methodology

With input from industry analysts, business leaders and technology experts, Global finance editors select the winners for the Best Bank awards based on the information from the entries and independent research based on objective and subjective factors. It is not necessary to enter to win, but materials provided with an entry may increase the chance of success. Participants may provide details that are not publicly available.

See also  Make the most of partnerships: pave the way to e-commerce success

The ratings are based on performance from January 1 to December 31, 2023. We then apply an algorithm to narrow down the list of contenders and arrive at a numerical score, where 100 equals perfection. The algorithm includes criteria weighted by relative importance, including knowledge of local conditions and customers, financial strength and security, strategic relationships, capital investments and innovation in products and services.

Once we narrow the field, our final criteria include scope of global coverage, staff size, customer service, risk management, product and service offerings, execution skills, and intelligent use of technology. In the event of a tie, our preference leans towards a local provider rather than a global institution. We also tend to favor private banks over state institutions. The winners will be the banks that best meet the specialized needs of companies engaged in global operations. The winners are not always the biggest, but they are the best: those with qualities that companies should pay attention to when choosing a provider.

The world’s best banks 2024

Regional winners
Africa Standard sofa
Asiatic-Pacific UOB
the Caribbean Bank reserves
Central America BAC Credomatic
Central and Eastern Europe OTP bank
Latin America BTG Pactueel
Middle East Arab bank
North America bank of America
Western Europe CaixaBank

Country and territory winners

Best banks in Africa
Algeria Banque Nationale d’Algerie
Angola Banco Angolano de Investimentos (BAI)
Benin Ecobank
Botswana First National Bank
Burkina Faso UBA
Cameroon Societe Generale Cameroon
Cape Verde Banco Comercial do Atlantico (BCA)
Ivory Coast Bridge bank group
DR Congo Rawbank
Djibouti CAC International Bank
Egypt CIB Egypt
Equatorial Guinea ANXIOUS
Ethiopia Awash bank
Gambia GTBank
Ghana Entrance bench
Guinea VISTA sofa
Kenya Cooperative bank
Madagascar Societe Generale Madagasikara
Malawi Standard sofa
Mali Banque Atlantique
Mauritius AfroAsia Bank
Morocco Attijariwafa
Mozambique Millennium bim
Namibia First National Bank
Nigeria Zenith sofa
Rwanda Bank of Kigali
Senegal Societe Generale Senegal
Sierra Leone UBA
South Africa Standard sofa
Sudan National Bank of Omdurman
Tanzania CRDB bank
To go Ecobank
Tunisia Amenbank
Uganda Centenary bench
Zambia Zanaco
Zimbabwe CBZ bank
Best banks in the Caribbean
Bahamas Scotiabank
Barbados Scotiabank Barbados
Bermuda Butterfield
Cayman Islands Butterfield Bank
Dominican Republic BanReservas
Jamaica Scotiabank Jamaica
Puerto Rico First Bank
Trinidad and Tobago Scotiabank Trinidad & Tobago
Turks and Caicos Islands Scotiabank Turks and Caicos
American virgin islands First Bank
Best banks in Central America
Belize Belize Bank Limited
Costa Rica BAC Credomatic
El Salvador Banco Cuscatlan
Guatemala Banco Industrial
Honduras Ficohsa
Nicaragua Banco LAFISE
Panama Banco General
Best banks in Central and Eastern Europe
Albania Banka Kombetare Tregtare
Armenia American bank
Belarus Priorbank
Bosnia and Herzegovina Raiffeisen Bank dated Bosnia and Herzegovina
Bulgaria UniCredit Bulbbank
Croatia OTP group
Czech Republic CSOB
Estonia LHV
Georgia Bank of Georgia
Hungary OTP group
Kosovo Banka Kombetare Tregtare
Latvia Citadel Banka
Lithuania Swedbank Lithuania
Moldavia MAIB
Montenegro CKB banka
North Macedonia Komercijalna banka
Poland Sofa Millennium
Romania Raiffeisen bank
Serbia Banca Intesa Beograd
Slovakia VUB
Slovenia Nova KBM
Turkey Isbank
Best banks in Latin America
Argentina Banco de Galicia
Bolivia Banco Mercantil Santa Cruz
Brazil BTG Pactueel
Chili Banco de Chile
Colombia Banco de Bogotá
Ecuador Produbanco
Mexico Banorte
Paraguay Banco Itau Paraguay
Peru Banco de Credito del Peru
Uruguay Banco Itaú Uruguay
Venezuela Mercantil, CA, Banco Universal
Best banks in the Middle East
Bahrain Ahli United Bank
Iraq National Bank of Qatar
Jordan Arab bank
Kuwait National Bank of Kuwait
Lebanon Arab bank
Oman Bank Muscat
Qatar Qatar Islamic Bank
Saudi Arabia Saudi Awwal Bank – SAB
United Arab Emirates Emirates NBD
Yemen Arab bank
Best Sofas in North America
Canada Scotiabank
United States bank of America
Best banks in Western Europe
Andorra Credit Andorra
Austria BAWAG
Belgium BNP Paribas Fortis
Cyprus Bank of Cyprus
Denmark Danske Bank
Finland Noordea
France Credit Agricole
Germany Commerzbank
Greece Eurobank
Iceland Landsbankinn
Ireland AIB
Italy UniCredit
Liechtenstein LGT
Luxembourg Spuerkeess (BCEE)
Malta HSBC
Monaco CFM Indosuez Asset Management
The Netherlands ING
Norway DNB
Portugal Banco Santander Totta
Spain CaixaBank
Sweden Noordea
Switzerland UBS
United Kingdom Lloyd’s Bank
Best US Bank Regional Winners
Far west Umpqua Bank
Huge lakes Fifth Third Bank
Mid-Atlantic Ocean Citizen Bank
New England Citizen Bank
Plains BMO bank
rocky mountain BMO bank
Southeast Regional bank
Southwest BMO bank
Share This Article
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *