WORLD'S BEST BANKS
Publication: Global Finance
Date: Monday, October 1 2007
At a time when the world economic outlook is more uncertain than it has been in years, the banking industry finds itself at the vortex of a financial market storm that originated in subprime mortgages in the United States and has spread to global money, debt and equity markets. "Unlike periods of
In a press conference following a meeting in Washington, DC, last month with chief executives from several leading mortgage lenders, Paulson said the financial turbulence was all happening against the backdrop of a strong economy.
How consumers react to the housing meltdown, however, could be the key to whether the US economy can skate around the edges of recession. Meanwhile, the seizing up of the money markets this summer prompted central banks to pump out billions of dollars on an almost daily basis to try to restore normalcy.
The Federal Reserve and other central banks were faced with a serious problem of trust in the banking system, as commercial banks and financial institutions became fearful of lending money, even overnight, to one another. At times like these, trust and reputation become of paramount importance to banks and their customers.
As Global Finance celebrates its 20th anniversary, our editorial team has identified the best banks in 110 countries, as well as the best banks globally in nine key banking categories. In one comforting sign of stability, the leading global banks are all repeat winners from last year. On a country-by-country basis, however, there are 31 changes in winners from last year. We have been presenting these awards since 1997.
WORLD'S BEST BANKS 2007
WORLD'S BEST BANKS 2007
Bad lending policies have haunted many banks over the years, and there have been massive cleanups of non-performing loans recently in such major countries as Japan and China. Bank capital increases and improved risk management under Basel II and other initiatives have strengthened the financial systems in many nations. The ongoing consolidation in the banking industry worldwide reflects the need for scale, as financial institutions amass the resources needed to invest in costly systems and trained staff to operate efficiently, safely and profitably.
Some of these trends have been around for years and likely will continue. Suddenly this summer, however, the credit cycle turned down with a vengeance. The environment has clearly changed, and the era of easy credit for leveraged buyouts has ended. The banks that are able to adapt best to change will survive and prosper. Stricter lending standards seem likely to be imposed, and growth of the financial services industry could slow, at least in the near term. Banks are being asked to increase lending at a time when they may have less appetite for it, as back-up lines of credit are being used more frequently.
The best banks are those that understand the needs of their customers and provide the products and services that are in demand and that produce mutual success. In selecting this year's winners, as usual we considered factors that range from the objective to the informed subjective. Objective criteria included growth in assets, profitability, geographic reach, strategic relationships, new business development and product innovation. Subjective criteria included the opinions of equity and credit-rating analysts, banking consultants and others in the industry.
Within this listing of the World's Best Banks, we have included our April 2007 list of the Best Developed Market Banks and our May 2007 list of the Best Emerging Market Banks.
Contributors: Paula L. Green, Antonio Guerrero, Anita Hawser, Laurence Neville and Gordon Platt
BEST GLOBAL BANK
BAET CORPORATE BANK
CITI
Citi's transaction services business continues to post strong earnings, with secondquarter 2007 revenues increasing 23% to a record $1.84 billion. The bank's ongoing investment in technology, product innovation and standardization across its core banking and cash management applications continues to win it new business, including global RFPs from major multinationals. Innovation and standardization are key in the corporate banking space, particularly for banks hoping to attract the top tier of customers that are demanding more from their cash management banks. Citi's award-winning TreasuryVision platform is used by major global corporates such as PepsiCo to gain greater visibility and enhanced risk management across more than 1,000 bank accounts. Citi is also leading the charge in helping to streamline and standardize identity management for corporates using interoperable digital certificates.
* Paul Galant, CEO, Global Transaction Services
www. citigroupcib. com
BEST CONSUMER BANK
HSBC
Challenging market conditions and problems in the bank's US correspondent mortgage business saw HSBC Personal Financial Services' pre-tax profit decline 20% in the half-year to June 30, 2007, compared with the first half of 2006. However, its Asian personal financial services business continued to perform strongly, with pre-tax profit 38% ahead of the first half of 2006. The bank has taken steps to reduce its exposure to problems in the United States, which it says are progressing well. Its retail banking operations in Asia have also been recognized as providing best-practice examples of branch banking facilities and providing retail banking customers with increasing levels of security. HSBC also announced recently that it would challenge the dominance of domestic providers by launching retail banking operations in the Japanese market from January 2008.
* Stephen Green, chairman
www.hsbcnet.com
BEST PRIVATE BANK
UBS
Despite increasing competition, the Switzerlandbased bank continues to dominate the industry as one of only three banks with assets under management in the trillions of dollars. According to London-based private banking benchmarking firm Scorpio Partnership, UBS is still at the top of the league table, despite slow growth in Swiss franc terms. At year-end 2006, UBS had almost $2 trillion in assets under management, representing an increase of 13% in Swiss franc terms. UBS's integrated Global Wealth Management & Business Banking division, which was launched in 2005, reported a record pretax profit of Sfr2.3 billion ($1.9 billion) in the second quarter of 2007, an increase of 4% from first-quarter 2007. Pre-tax profit for the Wealth Management International & Switzerland business reached an all-time high of Sfr1.5 billion, an increase of 3% from the first quarter.
Marcel Rohner, CEO
www.ubs.com
BEST ASSET MANAGEMENT BANK
State Street Global Advisors
State Street Global Advisors (SSgA), the investment management arm of State Street Bank, continues to lead the industry based on its institutional assets under management. Assets in the first quarter of this year increased 5.7%, bringing its total assets under management to $1.85 trillion, a 20% increase over the same period last year. Asset management fees increased 3% in the first quarter from the preceding quarter to $261 million, 19% greater than the first quarter of the preceding year. SSgA attributes the increases to its innovative "enhanced and quantitative investment strategies." In the quest for alpha, SSgA's support of long-short "edge" investment strategies has proved popular, with assets in that segment climbing to $10 billion. SSgA also recently strengthened its UK business with a number of new hires.
William Hunt, president and CEO
www.ssga.com
BEST CUSTODY BANK
The Bank of New York Mellon
Following the completion of The Bank of New York's merger with Mellon Bank in July, the new combined entity, The Bank of New York Mellon, has more than $20 trillion in assets under custody and administration. It is also ranked as the top provider of issuer and clearing services and a leading provider of corporate trust, depositary receipt and shareowner services. It services more than 40% of US-listed exchange-traded funds. The combined entity has a presence in 37 countries and combined annual revenues of $13 billion. The new entity continues to be awarded global custody mandates and recently announced the expansion of its presence in India with the opening of a second office, in Pune.
Robert Kelly, CEO
www.bnymellon.com
BEST INVESTMENT BANK
CITI
In Global Finance's annual Best Investment Banks awards, published in June this year, Citi won the Best Global Investment Bank award and Best Global Debt Bank. According to industry league tables, last year Citi had the best overall global market ranking in M&A, equity and debt combined and was involved in a number of last year's major deals on both the equity and debt sides. Citi's gross investment banking revenues were a record $1.8 billion in the first quarter of 2007, reflecting record equity underwriting revenues, up 83% from the same period a year earlier, and record advisory and other fees, up 45%. Net investment banking revenues increased 31% to $1.6 billion in the first three months of this year. Citi was also one of the coordinators of the groundbreaking IPO of US private equity firm Blackstone Group in June this year.
* Michael Klein (left), chairman and co-CEO, Markets & Banking
* Tom Maheras (right), chairman and co-CEO, Markets & Banking
www.citigroupcib.com
BEST TRADE FINANCE BANJT
CITI
Citi is one of the world's largest trade banks, processing approximately 1.8 million trade transactions per year. It has won multiple accolades for its trade services, including the areas of short-term and structured trade finance. Its global coverage is impressive, with an on-the-ground presence for trade services in approximately 100 countries. Regional trade processing centers in Asia, the United Kingdom and the US process millions of transactions using the latest imaging and web-based technologies. Citi has also integrated its trade services with its cash management business in order to provide companies with greater working capital benefits. It provides specialized and commodity trade financing solutions and, as trade becomes more global in nature, it can help companies mitigate the risks of doing business in new markets.
* Paul Galant, CEO, Global Transaction Services
transactionservices.citigroup.com
BEST FOREX BANK
Deutsche Bank
Deutsche Bank continues to dominate the $3 trillion-a-day foreign exchange business, with a global market share of approximately 20%. Its service offering encompasses spot, forward, options and prime brokerage. It boasts more than 40 FX dealing rooms and specializes in currency pairs of the 10 largest industrialized countries. It is the leading euro clearing bank globally, with a 16.9 % market share. Its online margin forex trading platform, dbFX, enables round-the-clock trading in more than 20 major currency pairs, and its currency management platform, FXSelect, is also highly rated. Deutsche also signed up to Reuters Trading for Foreign Exchange platform, which enables banks and their customers to trade FX from their Reuters terminals.
Josef Ackermann, chairman
www.db.com
BEST SUB-CUSTODY BANK
HSBC
HSBC scooped a number of accolades in Global Finance's, annual Sub-Custodian awards, winning Best Sub-Custodian in Asia, the Caribbean and the Middle East, as well as in-country awards in domestic markets such as Bahrain, where it has a strong offering for foreign institutional investors, and in the UK, where it is one of the largest sub-custody providers, with a market share of 20%. It has a presence in more than 80 countries and is responsible for safekeeping more than $1 trillion in customer assets. Last year HSBC continued to grow its assets under custody across a range of markets including Egypt, Hong Kong, Japan and Qatar. It has also expanded its network in recent years, acquiring the Australian and New Zealand sub-custody business of Australia's Westpac Bank.
Stephen Green, chairman
www.hsbcnet.com
NORTH AMERICA
BERMUDA
Butterfield Bank
Founded nearly 150 years ago, Butterfield Bank now has operations in the Bahamas, Barbados, Switzerland and the United Kingdom. Analysts laud its strong retail banking activities, such as mortgage lending, as well as its corporate services. The bank provides private banking, asset management and fiduciary services from its headquarters in Bermuda and its subsidiary offices. Net income jumped by 22.6% to $134.1 million last year. Total operating revenue increased by nearly 17%, or $59.9 million, to $415.1 million for the same period. At the same time, the strong growth in customer deposits helped boost assets to $11.1 billion, up from $9.2 billion a year ago.
Alan R. Thompson, president and CEO
www.butterfieldbank.com
CANADA
Royal Bank of Canada (RBC)
With more than 138 years under its belt, this Canadian bank keeps ahead of its competitors by deploying a strong distribution network for a variety of retail products and offering corporate clients a full array of services. Its corporate and investment banking unit, RBC Capital Markets, contributed approximately 30%, or $1.2 billion, to the group's earnings last year. Analysts expect the unit to grow as its managers build the investment banking business. Backed by the parent company's $400 billion in assets, RBC Capital Markets is known in the United States and Europe for successfully filling a niche-for example, municipal underwriting-while at home it serves as a full-service corporate bank and offers everything from innovative credit solutions to foreign exchange. The bank prides itself on measured growth in all business lines, and in early February it shifted its asset management business, along with some other operating lines, into a new wealth management unit. For the fiscal year that ended November 30, 2006, RBC reported an 8% increase in revenue from continuing operations to $18.2 billion, reflecting strong growth across most business lines. Net income from continuing operations for the same period jumped nearly 40% to $4.2 billion, up from $2.8 billion in 2005.
Gordon M. Nixon, president and CEO
www.rbc.com
UNITED STATES
Citi
Already a global powerhouse, with 300,000 employees working in more than 100 countries, Citi has plans to push ahead on the international front and eventually boost the portion of revenues gleaned from global business accounts to 60%. That's up from the more than 40% share that international operations contributed last year to the bank's 2006 revenues of $89.6 billion-itself a jump of 7% over the preceding year. While analysts are still waiting for chief executive Charles Prince, who took the reins as CEO in 2003 and was named chairman last year, to hone his management skills, they give him strong marks for helping Citi emerge from the controversial regulatory entanglements that tainted its image and snagged its stock price. These included the shareholder suits surrounding financial scandals at Enron and WorldCom and the tangle with Japanese authorities over Citi's private banking unit. The latest controversy that made investors skittish was the decision to shift chief financial officer Sallie Krawcheck over to Citi's global wealth-management business after its chief, Todd Thomson, quit abruptly.
While other major banks may be better managed right now, Citi is hard to beat for its size and sheer reach around the globe, from Argentina to Zambia. Its corporate and investment banking unit-which kicked in $27.2 billion of the company's revenue last year and a third of its $21.5 billion in net income-is known for providing corporations around the world with tailored financial solutions in everything from restructuring to foreign currency to debt.
* Charles Prince, chairman and CEO
www.citigroup.com
EUROPE
ALBANIA
Raiffeisen Bank Albania
Although 2006 was not a stellar year for Raiffeisen Bank Albania, it was an important one: Total assets may have been flat, but the bank has been laying the foundation for future growth with an expansion from 91 to 130 ATMs, giving the bank the widest network of facilities in the country. Raiffeisen Bank Albania is also working hard to improve customers' experiences: Its biggest development in 2006 was an initiative-called FokusiTek Klienti internally-aimed at improving customer sales and service, which heralded a major cultural change within the bank and improved its interactions with customers.
Steven Grunerud, CEO
www.raiffeisen.al
AUSTRIA
Raiffeisen Zentralbank
The RZB Group, headed by Vienna-based Raiffeisen Zentralbank Osterreich, is a powerhouse in central and eastern Europe. In the first three quarters of 2006, Raiffeisen achieved another record result with consolidated profits of euro539 million. The bank's balance sheet total surpassed euro50 billion for the first time and its profitability improved further with a return on equity (ROE) before tax of 26.5% and a cost/income ratio of 56.9%. The Commonwealth of Independent States (CIS) is the region with the strongest growth for the bank and the largest earnings increases, thanks partly to acquisitions. Profit before tax rose there by euro220 million to euro316 million, with the one-off effect of selling the stake held in Bank TuranAlem contributing euro102 million to that growth. The region's share in total profits advanced significantly from 23% to 42%, or 33% excluding the one-off effect.
* Walter Rothensteiner, chairman
www.rzb.at
BELARUS
Belagroprombank
Belagroprombank, a state-owned public joint stock company that is one of the largest universal financial institutions of the Republic of Belarus, has wrested the best bank in Belarus title away from Priorbank for the first time by virtue of its superlative performance in 2005-the last year for which figures are available. While Priorbank increased assets by a steady 6.77% that year, Belagroprombank, which is the second-largest bank by assets in the country after Belarusbank, grew assets by a staggering 65.85%. Belagroprombank offers its customers a broad range of services and is in the process of implementing an important program to further village regeneration and development in Belarus, in which the rural economy remains important. Necessarily, as a profit-focused bank, this strategy is also expected to have payoffs in terms of customer service and the growth of retail business.
* Rumas Sergej Nikolayevich, chairman of the board of management
www.belapb.by
BELGIUM
Fortis
Buoyant customer activity led to a 19% growth in profits for Fortis during the first nine months of 2006, with the banking division performing well: Net profit increased 25% to euro2.64 billion while total income was up 15% to euro7.87 billion-almost entirely due to strong growth of net interest and commission income. At the same time, the bank's cost/income ratio remained stable at 57.8%, and it enjoyed continued low impairments on loans, with a credit/loss ratio at four basis points. Commercial momentum in the third quarter was sustained due to robust customer activity: Underlying lending volumes were up 7% quarter-on-quarter and 18% year-on-year. In addition, net inflow in funds under management was euro5.9 billion in the third quarter.
Jean-Paul Votron, CEO
www.fortis.com
BOSNIA & HERZEGOVINA
Raiffeisen Bank Bosnia i Herzegovina
Raiffeisen Bank is the largest bank in Bosnia and Herzegovina and grew its total assets by 20% in the first three quarters of 2006 compared to yearend 2005; the bank also grew its market share in the same period. The bank offers a diverse range of card products, savings products and product packages and recently became the first bank authorized to carry out custody operations in Bosnia and Herzegovina. It has reorganized its corporate banking segment by setting up corporate business centers, bolstering infrastructure, adding sales staff and launching new products. Its corporate loan portfolio grew 40% on the preceding year, while sales of trade finance products increased by 12%.
* Michael Mueller, director
www.raiffeisenbank.ba
BULGARIA
Bulbank
Bulbank, part of the mighty UniCredit group, spent much of 2006 laying the foundation for its merger with HVB Bank Biochim and Hebros Bank. Bulbank's normalized net profit increased by 17% in the first half of 2006 compared to the same period of 2005, with total revenues increasing by 7%. Commercial banking revenues were strong-increasing 16.7% and accounting for 83% of total revenues. But growth in the booming retail business was the main performance driver for the bank: It increased 31% while net fee and commission income was up by 21%-supported by an increase in the number of customers, a broadening of the scope of services offered and fast growth in lending and assets under management. At the same time, costs remained under control, with a cost/income ratio of 37.8%.
* Levon Hampartzoumian, chairman and CEO
www.bulbank.bg
CROATIA
Privredna banka Zagreb
Privredna banka Zagreb's profit after tax increased by 8.7% in 2005, the last year for which figures are available, giving the group a strong return on equity of 17.8%. The bank's asset quality remained strong despite this growth, with a capital adequacy ratio of 14.1%-positioning the bank well for Basel II and International Financial Reporting Standards as well as new legislative requirements in Croatia. Privredna banka Zagreb, which is part-owned by Gruppo Banca Intesa, is facing a number of challenges, not least Croatia's tough monetary policy. Meanwhile, intense competition is lowering margins. However, Privredna banka Zagreb's broad portfolio of business, strong capital base and solid brand should ensure that it continues to prosper.
Bozo Prka, president
www.pbz.hr
CYPRUS
Bank of Cyprus
The Bank of Cyprus has experienced an exceptional period of development and a dramatic improvement in its performance and profitability during the two years to December 2006. Its total operating income increased from euro633 million in 2004 to euro918 million in 2006 while its cost/income ratio improved from 62.3% to 46.7%, with total operating expenses increasing by only 4% a year. The result of this strong performance and increased efficiency was a fourfold growth in profit after tax from euro67 million to euro317 million while ROE increased sharply to 21.7% from 7.1%. In Greece, the bank increased business volumes at rates higher than the market and gained a large number of new clients. Meanwhile, it has built on its established client relationships in eastern European countries and has pledged to establish Cyprus as an international financial center for businesses from Russia and other countries of eastern Europe.
Andreas Eliades, CEO
www.bankofcyprus.com
CZECH REPUBLIC
Ceskoslovenská obchodní
Ceskoslovenská obchodní operates in the Czech Republic and Slovakia and is the largest bank in central Europe, measured by total value of assets, and the leading advisory bank focused on wealth management in the Czech Republic. It enjoyed a strong 2005, the last year for which audited figures are available, with net profit growing by 50%-or 17% when non-recurrent items are removed. Unaudited figures for 2006 show a further 10% growth in profit. Retail, corporate, mortgage and asset management all experienced increases in activities. That the bank is able to improve profitability when the main source of its income-net interest income-is under pressure from a low interest rate environment and intense competition was impressive. The growth in operational profitability was also aided by better cost control.
Pavel Kavánek, CEO
www.csob.cz
DENMARK
Danske Bank
Danske Bank enjoyed a spectacular year in 2006. Not only did it successfully integrate its newly purchased operations in the Republic of Ireland and Northern Ireland, but it ended the year buying Finland's Sampo Bank. Against this backdrop of unprecedented change, Danske Bank has continued to grow profitably: The group made a net profit of DKrl3.55 billion ($2.4 billion) compared to DKr12.64 billon in 2005. Income rose by 8% over 2006 while the bank's cost/income ratio improved from 52.4% in 2005 to 52%. Bank loans and advances rose an impressive 23% while lending to retail customers increased by 16% and lending to corporate customers rose by 26%. For shareholders the news was good: Dividends were increased, and Danske Bank now pays out a dividend equal to 40% of the net profit of the group.
Peter Straarup, CEO
www. danskebank. com
ESTONIA
Hansabank
Part of the Swedbank group since 2005, Hansabank is the largest financial institution in the Baltic region, with total assets of more than euro12.7 billion and shareholder equity of more than euro1.09 billion at the end of 2005, the last year for which full figures are available. Hansabank completed 2005 with a net profit of euro241.8 million-24% up on 2004-and the group produced a return on equity of 25% and a return on assets of 2.39%. Interim financial results for 2006 indicate that Hansabank enjoyed another strong year and achieved its best-ever quarterly net profit of euro103 million in the fourth quarter-an increase of 91% from the same period a year earlier. Hansabank dominates retail banking in Estonia: Half of all domestic mortgages are taken out with the bank.
Erkki Raasuke, chairman and CEO
www.hansa.ee
FINLAND
OKO Bank
In 2006 the OP Bank Group, of which OKO Bank is the universal commercial bank and the main bank, reported the best annual earnings in its history. Earnings before tax grew by 38% to euro800 million, while both income and expenses increased by 37%. Net interest income was up 11%, and other income rose by 69%. At the same time, OP Bank Group continued to strengthen its market position, growing its market share in loans, deposits, and life and pension insurance. Meanwhile, the bank continued to have a strong risk-bearing capacity and stable risk exposure: Its funds were 1.6 times the statutory minimum while nonperforming receivables declined to a historically low 0.3% of the loan and guarantee portfolio.
* Mikael Silvennoinen, president and CEO
www.op.fi
FRANCE
Société Générale
In the fourth quarter of 2006, Société Générale maintained its trend of profitable growth recorded in the first nine months of the year. Growth was driven by improvements in all business lines and reflected the soundness of the strategy implemented since 1999, combining strong organic growth and focused, value-creating acquisitions. By the end of December 2006, the group had 22.5 million individual customers in its retail banking and financial services networks, an increase of 2.4 times in seven years; euro422 billion in assets under management, an increase of 2.8 times in seven years; and almost 120,000 employees in 77 countries. Retail banking outside France is one of the group s main growth drivers, combining acquisitions in targeted geographical regions (central and eastern Europe, Mediterranean basin) and stepped-up organic growth in areas where the group has a presence. The bank has also been acquisitive, not least in Russia, where it bought a 20% stake in Rosbank, the second-largest Russian retail banking network.
* Daniel Bouton, chairman and CEO
www.socgen.com
GERMANY
Deutsche Bank
The Deutsche Bank powerhouse continues to grow at an exceptional pace. Unaudited figures for the fourth-quarter and full-year 2006 show income before income taxes was euro8.1 billion for the year, up 33% compared to euro6.1 billion in 2005. Net income for the year was euro6 billion, up a staggering 70% compared to 2005. Fourth-quarter figures were even more impressive: Income before income taxes was up 81% while net income was up 272%. Every division of Deutsche Bank appears to be firing on all cylinders. Moreover, Deutsche Bank looks well positioned to take advantage of growth in all its main markets. Shareholders benefited from a 60% increase in the dividend.
Josef Ackermann, chairman
wwrw.deutsche-bank.de
GREECE
Eurobank EFG
EFG Eurobank has expanded its presence in three new countries in central and southeastern Europe and achieved strong business growth in Greece and other countries in what it describes as "New Europe." By the end of 2006 the group had established a strong footprint with a network of more than 1,300 branches. Eurobank EFG successfully established Polbank EFG in Poland, entered the Turkish banking market through Tekfenbank and entered the Ukrainian market through Universal Bank. More important, Eurobank EFG has performed stunningly: Consolidated net profit increased by 28.6% to euro644.5 million against a target of euro615 million. Lending volume rose 27.4% year-on-year. As a result of the bank's increased profitability, the dividend was increased by 23%.
* Nicholas Nanopoulos, CEO
www.eurobank.gr
HUNGARY
OTP
The past year has been the most active acquisition period in OTP's history, with new acquisitions in Russia (Investsberbank), Ukraine (RBUA), Serbia (Zepter banka and Kulska banka) and Montenegro (CKB). The bank has consequently issued subordinated and upper-tier-2 capital in order to finance its acquisitions and bolster its capital adequacy. OTP has had good foundations on which to grow. In 2005, the last year for which figures are available, OTP grew after-tax profit by 20.3% while its balance sheet total rose by 25.3% and equity grew to around euro2.2 billion. Although OTP profitability ratios declined in 2005 compared to the record levels of 2004, by global standards it remains among the most profitable banking groups, with a consolidated rate of return on average assets of 3.38%.
* Sándor Csányi, chairman and CEO
www.otpbank.hu
ICELAND
Glitnir
Iceland's banks had a tough time in 2006-at least reputationally-following investor concerns about the stability of the country's economy during the first quarter. Glitnir s figures for 2006 silenced the critics: After-tax profit for the fourth quarter was ISK9.3 billion ($140 million) compared to ISK8.8 billion in Q3 2006, while after-tax profit was ISK38.2 billion in 2006 compared to ISK18.9 billion in 2005-a 102% increase. Pre-tax profit for the full year was ISK46.3 billion compared to ISK23.1 billion in 2005. Crucially, during 2006 45% of the bank's pretax profit was generated outside Iceland, or ISK20.7 billion of ISK46.3 billion. Almost every aspect of the bank's performance improved dramatically in 2006: Fees and commissions increased by 202% from 2005 to 2006 while after-tax return on equity in 2006 was 39.4%, compared to 30% in 2005. Total assets grew an impressive 53% over the year.
* Bjarni Ármannsson, CEO
www.glitnir.is
IRELAND
AIB
Allied Irish Bank's strong results for the first six months of 2006-the most recent figures released-reflect vigorous, well-spread growth in all its markets and the development of high-quality franchises. While exceptionally good asset quality complemented the first-half results, the strong operating performance and customer demand underpins confidence in the future growth and resilience of the bank's business. ROE at the Irish banking division was up 19% on the same period a year earlier while pre-tax profit of the capital markets division was up 58%. Pre-tax profit at the bank's UK operations increased 18% while its Polish operations' pre-tax profit grew 62%. The bank's cost/income ratio was down 2.7% to 52.4%.
* Eugene Sheehy, CEO
www.aib.ie
ITALY
UniCredit
UniCredit has now fully integrated with the HVB Group, and the bank is already benefiting. In the first three quarters of 2006-the most recent results published-net income was up 44.7% with net income for the third quarter alone up 37.8% year-on-year. Revenue also increased by 4.6% in the quarter over the preceding year and an impressive 11.9% in the first nine months of the year compared to the same period a year earlier. At the same time, UniCredit has kept its costs in check: They rose just 0.7% in the quarter compared to the previous year and 1.5% for the first three quarters. Combined with an 8.1% reduction in impaired loans, UniCredit not surprisingly turned in a strong return on risk-adjusted capital of 8.9% and a return on allocated capital more than double the cost of equity.
* Alessandro Profumo, managing director and CEO
www.unicreditgroup.eu
LATVIA
Hansabank
Hansabank prospered in the strong economic climate in Latvia in 2006, and net profit increased 57% from 2005 and set a record for the Latvian banking sector. Both individuals and enterprises in Latvia are benefiting from rapid growth, and Hansabank has taken good advantage of the opportunities this affords to grow financing portfolios in both markets. At the same time, Hansabank has worked hard to improve internal procedures and ensure that the quality of its loan portfolio remains high. Amid a huge surge in house building in Latvia, Hansabank has become the leading player in the mortgage market: At the end of 2006 every third owner of any new or renovated home took out a loan from Hansabank.
* Maris Avotins, chairman
www.hansabanka.lv
LITHUANIA
SEB Vilniaus Bankas
SEB Vilniaus Bankas saw its net profit in 2006 rocket by 93.3% compared to 2005. Much of that growth came from an increase in interest income due to more active lending activities and also by an increase in net commission income due to a higher number of transactions and growth in savings volumes. SEB Vilniaus Bankas has also improved its efficiency considerably. Return on equity increased from 12.7% to 21% in 2006 and its cost/income ratio shrank from 51.3% to 42.6%. The year was marked by growth in customer activity, with assets under management increasing by 40%. The bank is the clear local market leader in terms of loans, deposits and issued securities portfolios, with a market share of 35% of loans and 32% of both deposits and issued securities. Loan volume increased 50% in 2006.
* Audrius Ziugzda, president
www.seb.lt
LUXEMBOURG
Fortis Banque Luxembourg
Fortis delivered a strong performance for the first nine months of 2006. Before divestments, the bank already outpaced its full-year results for 2005. Impressive 18% underlying loan growth, which compares favorably with the strong 15% growth in 2005, helped to drive revenues from banking operations, which increased 15% to euro7.9 billion. In the first nine months of 2006, net new inflow in funds under management totaled euro13.7 billion, with sharp growth in the third quarter. In order to continue and boost this strong performance, Fortis recently decided to recalibrate its organization to reflect shifting business dynamics. Although details will not be released until full-year results are announced, the aim is to focus on new solutions that offer higher revenues and make better use of resources.
* Jean-Paul Votron, CEO
www.fortis.com
MACEDONIA
Komercijalna Banka
The largest bank in Macedonia-and 90.9% owned by private shareholders-Komercijalna Banka had a tough time in 2006, with a 45% decline in gross profit. However, much of this decline can be attributed to exceptional circumstances, including a now-resolved dispute with the government. The underlying trends remain strong at Komercijalna Banka. The bank's capital adequacy ratio during 2006 was a solid 14.8% while return on equity was 10.1% and return on assets was 1.1%. Retail deposits were especially promising during the year, with a 16% increase.
* Hari Kostov, first general manager
www.kb.com.mk
MALTA
Bank of Valletta
Bank of Valletta's profits before taxes for the financial year ended September 2006 were 44.5% over the preceding year. The increased profitability came from almost all divisions despite strong competitive pressures in the local market. Credit and financial markets and investments reported an increase in interest margin contributions and much-reduced impairment charges as a result of a long-term plan to reduce impaired loans. Costs have been kept under tight control despite increasing volumes of business and the strengthening of the bank's physical and electronic infrastructures in order to improve efficiency and quality of service. These improvements should position the bank well for further growth.
* Tonio Depasquale, CEO
www.bov.com
MOLDOVA
Moldova Agroindbank
Moldova Agroindbank is the largest bank in Moldova, with capital of more than $16 million at the end of 2005-many times larger than its nearest rival. The bank had 20.7% of all assets, 23.5% of loans and 21.8% of all deposits at the end of 2006. The bank is also growing strongly and profitably: Profits increased by 11% in 2005, the last year for which figures are available. The bank aims to consolidate its grip on Moldova, with a concerted expansion plan across the country and a major effort to grow its credit portfolio, increase its number of clients and develop relationships with external financial institutions.
* Natalia Vrabie, president
www.maib.md
NETHERLANDS
ABN AMRO
ABN AMRO has pursued a focused strategy that ruthlessly exploits the bank's strengths and sensibly stays out of markets where it might be an alsoran. The results continue to be impressive: Full-year operating profit was up 14.5%, and revenue growth was 19.6%, driven by the integration of Italian bank Antonveneta and organic growth in all regions. Meanwhile, the whole operation was underpinned by a strong performance by ABN AMRO's global markets division. ROE in 2006 was 20.7%, above the bank's target of 20%. A strict capital management regime allowed an increased dividend for 2006 and a new euro1 billion share buy-back program to take place during the first half of 2007. The bank's tier-1 ratio improved to 8.45%.
* Rijkman Groenink, chairman of the managing board
www.abnamro.com
NORWAY
DnB NOR
DnB NOR enjoyed a strong 2006, with pre-tax operating profits before write-downs up 12.8%. All of the group's business areas experienced sound growth during the year, and despite intense competition and pressure on spreads, the group's income rose by 12.5% from 2005. Growth in lending was 18.7% in 2006 while corporate lending growth averaged 26.2% and household lending increased by 11.3%. The bank reduced lending spreads in the retail market by 0.33 percentage points in the course of 2006, whereas there was an increase in deposit spreads. Narrowing spreads in the corporate market were counteracted by strong growth in volumes. Non-performing commitments and write-downs on loans were historically low. The bank has also kept up the pressure on expenses, and although they increased by 12.2%, that was still a lower figure than income growth. The rise in costs reflects investments in new international operations, increased product development and investments in new IT systems, which should all yield improved performance in the future. DnB NOR's cost/income ratio was 50.1% for the year, a hair lower than the 50.2% achieved in 2005. The bank is on course to attain its sub-50% goal in coming years.
* Rune Bjerke, CEO
www.dnbnor.com
POLAND
BPH
The merger of BPH and Bank Pekao has created an unassailable force in Polish banking despite some of BPH's operations having to be sold off separately in order to satisfy the banking regulator. The newly merged entity will undoubtedly be the bank to beat in future years. However, in the year under review, it is UniCredit-owned BPH that deserves most plaudits. In 2006 consolidated pre-tax profit was up 26% and net profit up 23% on the previous year. Pre-tax return on equity rose to 25% while the bank's cost/income ratio dropped to 46.7%. The bank's non-performing loan ratio fell during the year to 5.2% while loans to customers went up by 12% and deposits by 11%.
* Józef Wancer, chairman
www.bph.pl
PORTUGAL
Millennium bcp
The Portuguese market is intensely competitive, and the title of best bank was closely fought between Santander Totta, Banco Espírito Santo and this year's winner Millennium bcp, which enjoyed a strong financial performance in 2006, with recurrent net income up by 28% and earnings per share up 26%. Millennium bcp's focus on Portugal-it has a 25% average domestic market share in retail banking, private banking and asset management, commercial banking, and corporate and investment banking-has proved to be the right strategy for the bank. However, while 84.8% of total assets and 89.5% of recurrent earnings come from Portugal, Millennium bcp has cannily got exposure to growth markets in Greece and Poland, where recurrent net income grew 51% on 2005.
* Paulo Jorge de Assunção Rodrigues Teixeira Pinto, chairman
www.millenniumbcp.pt
ROMANIA
BRD-Groupe Société Générale
In 2006 BRD-Groupe Société Générale posted a 19% increase in consolidated profit despite massive investments in the development of its network. This expansion paid dividends, with BRD gaining more than 360,000 new customers during the year. Business volume also increased dramatically, with loans up by 79%. Retail loan growth of 113% was even more impressive. Deposits have grown more slowly, with an increase of 35% in 2006. Net banking income rose 26% as a result, and gross operating revenue went up by 21%.
* Patrick Gelin, CEO
www.brd.ro
RUSSIA
VTB
In May of this year, Russia's second-largest bank, VTB, launched an initial public offering (IPO) that raised $8 billion and, as shares rose in secondary trading, valued the bank at almost $40 billion. The IPO, which was Russia's second largest ever, cut the Russian government's stake in the bank from almost 100% to around 75%. VTB is widely considered to be one of the best-run banks in the country, and the success of its IPO only served to confirm that impression. It is one of the most profitable banks in Russia. In the first nine months of 2006 its consolidated net profit was $816 million-up a staggering 124.2%. Core revenue at the bank rose by 102.8% to $2.91 billion while interest income rose by $545 million, up 82%, and net fee and commission income grew by $145 million, or 119.8%. The bank's asset base also grew a hefty 33.3% to $48.95 billion while net loans and advances to customers rose to $27.58 billion, up 38.4%, supported by a 59.4% growth in customer deposits.
* Andrei Kostin, chairman and CEO
www.vtb.ru
SERBIA
Raiffeisen Bank
Serbia and Montenegro may have separated in 2006, but political tensions have had little impact on Raiffeisen Bank. In the first nine months of 2006, total assets increased by a third to euro1.88 billion while the bank expanded its network to 56 outlets from 45 a year earlier. The bank offers a comprehensive range of products and services in corporate banking, treasury, consumer banking and investment banking and offers services to small enterprises and entrepreneurs. Corporate banking has been especially strong for Raiffeisen Bank, which now has a customer base of more than 3,170 clients-making it the key player in the corporate segment in Serbia for both local and multinational clients.
* Budimir Kostic, chairman
www.raiffeisenbank.co.yu
SLOVAKIA
Slovenská sporitelna
Erste Bank-owned Slovenská sporitelna is a vital part of Slovakia's economy, which was one of Europe's fastest-growing economies in the past two years. Not surprisingly, this climate has allowed the bank to prosper. In 2006 Slovenská sporitelna strengthened its position as the largest and strongest bank in Slovakia, with retail loans up by 34% and deposits increasing 18%. As a result, the bank's share of the loan market increased to 18.5%, and its share of deposits reached 22.7%. Housing loans provided by Slovenska sporitelna account for one third of the total housing loans in the Slovak market. Meanwhile, the volume of corporate loans to small and medium-size enterprises increased by 38% while corporate deposits went up by 31%.
* Regina Ovesny-Straka, chairperson and general manager
www.slsp.sk
SLOVENIA
Nova Ljubljanska
Nova Ljubljanska has expanded rapidly-both organically and by acquisition-and in 2005 launched a pensions company, a factoring company and a real estate venture, among other projects. Indeed, the NLB Group, which is centered on Nova Ljubljanska, now owns 17 banks, 11 leasing companies, 10 companies involved in factoring and forfeiting, three insurance companies and two asset management companies, as well as 15 companies engaged in other fields. The bank has continued to hit growth targets despite the challenges posed by integrating its new operations. In 2005, the last year for which figures are available, post-tax profits went up 37% while total assets reached euro12.4 billion-a jump of 24%.
* Marjan Karmar, president and CEO
www.nlb.si
SPAIN
Santander
Santander has transformed itself into a world-class bank in less than a decade, and it shows no sign of slowing its growth. In 2006, attributable profit, excluding capital gains, rose 26% to euro6.58 billion while earnings per share also rose 26%, allowing the dividend to be increased by 25%. The increase in profit was driven by growth in revenues of 17%-more than twice the rate of growth in costs of 7%-leading to an improvement in efficiency of more than 4 percentage points to 48.5%. Growth in revenues at the bank was supported by strong activity in all businesses, in Europe as well as in Latin America. Loans grew by 20% and customers' funds by 9%. In continental Europe, profit grew by 16% to euro3.47 billion, owing to growth in loans of 29% and in customer funds of 16%. In Latin America, attributable profit increased by 29% to euro2.29 billion, with growth of 22% in loans and 25% in customer funds, measured in local currency. Santander's UK operation Abbey increased profit by 24% to euro1 billion, with growth of 9% in loans and 2% in deposits in sterling.
* Alfredo Sáenz Abad, second vice chairman and CEO
www.santander.com
SWEDEN
SEB
Building on the strong economic climate with high financial market activities and business volumes, SEB achieved its best results ever last year. Its efforts to improve productivity and establish a more competitive long-term cost base are gradually yielding results. In last year's buoyant business climate, revenues were up 13% while costs increased by 2%. Return on equity reached 20.8%. The bank's operating profit for the full-year 2006 increased by 39%, and net profit improved by 50%. Strong markets and intensified customer activities led to higher operating profits in all divisions. Profit growth was particularly strong within merchant banking, eastern European banking, and life insurance, with operating results increasing 40% to 65%. The bank has narrowed its strategy to a full universal banking offering in Sweden, the Baltic countries and Germany and a more focused offering in other markets.
* Annika Falkengren, president and CEO
www.sebgroup.com
SWITZERLAND
UBS
One of the titans of global banking, UBS did not put a foot wrong in 2006, with its financial businesses' attributable profit from continuing operations at a record Sfr11.25 billion ($9.23 billion)-up 19% from 2005-the fourth consecutive record year for the businesses. Shareholders enjoyed a 20% increase in earning per share, and while they should be wary of the growth in UBS's cost base-costs rose 19% against an increase in income of 18%-the bank is in the process of expanding its business, which should help it continue to grow revenue in coming years.
* Peter Wuffli, CEO
www.ubs.com
TURKEY
Akbank
Akbank has once again confirmed it is Turkey's leading bank. Assets increased 9% in 2006, with 47% growth in small and medium-size company loans and 37% growth in consumer loans. That was balanced by a 12% increase in customer deposits, which helped net commission income to grow 27%. Return on average equity was 24.4%. The successful completion of a sale of a stake in Akbank to Citi in January this year will no doubt position the bank well for further growth by providing it with best-practice examples, management expertise and a considerably wider product suite.
* Zafer Kurtul, president and CEO
www.akbank.com
UKRAINE
UkrSibbank
UkrSibbank, which became 51% owned by BNP Paribas at the end of 2005, is the fourth-largest bank in Ukraine but has rapidly leveraged its relationship with its strategic investor to become one of the most sophisticated banks in the country, with access to an unrivaled range of products and services. While there was inevitably plenty of attention on BNP Paribas' involvement with UkrSibbank, the bank has kept its focus on growing its customer base, and in 2005 it grew its number of corporate clients 32% to 2,525. UkrSibbank also revised its procedures to reduce significantly the time needed to consider credit applications without increasing the risks to the bank.
* Aleksandr Adarich, chairman
www.ukrsibbank.com
UNITED KINGDOM
Barclays
Britain's Barclays Bank enjoyed a strong 2006: Barclays Capital, Barclays Global Investors and the UK retail banking operations performed well despite intense competition. South Africa's Absa, long the hope for growth in the group, in its first full year of results outperformed the business plan put in place when the acquisition occurred. Barclays' income increased by 35% to £21.59 billion while profit before tax grew 35% to £7.14 billion.The bank's income growth of 25% was well ahead of expense growth of 20% despite the significant investment in organic growth across the business and performance-related costs. The icing on the cake was becoming the world's biggest bank in terms of assets.
* John Varley, CEO
www.barclays.com
ASIA
ARMENIA
Converse Bank
Last year Converse Bank's total capital increased by almost 7% to AMD9.5 billion ($26.5 million). In February the bank announced that Advanced Global Investments acquired a controlling stake in Converse Bank, the closed joint stock company. A minority interest of 5% of the bank was donated to the Holy see of Etchmiadzin. The bank's new owner is expected to continue promoting business, increasing the use of technology and enhancing service levels. Last year Converse Bank placed considerable emphasis on enhancing management and customer service with the introduction of the ISO 9001:2000 quality management standard. The bank continues to install ATM machines and POS terminals, as well as offering innovative banking services such as enabling customers to receive account information via SMS.
* Artak Anesyan, director general
www.conversebank.am
AUSTRALIA
Commonwealth Bank of Australia
All of the Australian banks performed well in the past year, with double-digit profit growth in most cases, but Commonwealth Bank of Australia (CBA) had a spectacular year, with record net profit of A$3.1 billion (US$2.4 billion)-up 14%. All of the group's businesses made contributions to the performance, and the bank's focus on its strategic priorities proved to be successful: ROE, on a cash basis, increased 60 basis points to 22.3%; the bank maintained its high credit quality; it offered investors a record interim dividend; and it declared that it was on track to deliver full-year earnings-per-share growth that meets or exceeds the average of peers.
* Ralph Norris, managing director and CEO
www.commbank.com.au
AZERBAIJAN
International Bank of Azerbaijan
International Bank's dominant domestic position saw it become a national development bank for Azerbaijan in 2003. IBAR has more than 400,000 individual customers and more than 30,000 corporate customers and leads other banks in the number of private deposits (more than 40%) and corporate deposits (90%). The bank is at the forefront of debit and credit card issuance and has spearheaded key developments in electronic and mobile phone banking. IBAR has the largest branch and ATM network in Azerbaijan, with 36 branches and more than 100 subbranches. It also has subsidiaries in Moscow and Georgia and representative offices in the United Kingdom and Germany. Its cost/income ratio remains relatively low at 41.75%, and its ROE for 2006 was a healthy 20.06%.
* Jahangir Hajiyev, chairman
www.ibar.az
BANGLADESH
Janata Bank
Bangladesh's four leading nationalized commercial banks (NCBs) dominate overall domestic banking activity. Janata Bank is the second-largest NCB, with authorized capital of $145 million and total assets of $1.89 billion. It was among the first of the NCBs to introduce ATM banking via its membership in the Q-cash consortium. It is also a leading provider of international remittances for Bangladeshis abroad and a leading provider of export financing. It is facilitating the development of domestic IT investment through its innovative credit scheme, Financing Computer Software Development & Data Export.
* S.M. Aminur Rahman, managing director
www.janatabank-bd.com
CHINA
China Construction Bank
CCB was the first of the four largest state-owned banks in China to offer shares in an IPO on the Hong Kong stock market. Last year it expanded its reach into Hong Kong by acquiring Bank of America (Asia). In the first half of 2006 it was the leading Chinese banking provider based on total new loans and deposits and the most profitable bank with the strongest asset quality among China's so-called Big Four. Operating income for the first half of 2006 was approximately RMB71 million, an increase of 12.6% on the same period in 2005. CCB's corporate loans business increased by 12% on 2005 levels to RMB1.9 billion ($245.7 million). Risk management reforms, including the appointment of a chief risk officer and upgrading its credit management information system, helped it reduce its non-performing loans (NPLs) ratio to 3.51% in the first half of 2006, down from 3.84% previously.
* Guo Shuqing, chairman
www.ccb.com
GEORGIA
TBC Bank
TBC is one of Georgia's largest commercial banks, with 13 branches and 165,000 customers including the corporate, retail and SME market segments. Net profit for 2006 according to interim figures was $14.9 million, and the bank posted an ROE of approximately 26%. Its NPL ratio in 2006 stood at 1.45%, and it leads other banks in terms of its implementation of an operational risk framework. TBC has a 26% share of deposits and a 23% share of loans. Its loan book grew 40% year-on-year to reach $337 million in 2006, and deposits reached an all-time high, increasing by 31% to $320 million. Recently, Israel's Leumi Bank announced it would purchase a 20% stake in TBC.
* Mamuka Khazaradze, chairman, supervisory council
www.tbcbank.com.ge
HONG KONG
HSBC
HSBC's combination of well-positioned and profitable business in developed markets and leadership positioning in emerging markets-not least China-continues to delight shareholders. Profit attributable to shareholders for the first half of 2006 rose by 15% to $8.7 billion-a new high-and represented earnings per share of $0.78, a rise of 13%. Income in the first half grew by $4.5 billion while costs grew by just $1.7 billion. Net operating income growth compared with the first half of 2005 was 14% while the bank's cost-efficiency ratio improved to 50.1%.
* Michael Geoghegan, CEO
www.hsbc.com
INDIA
ICICI Bank
Improving financials at India's second-largest bank saw Moody's Investors Service upgrade ICICI Bank's financial strength rating to C- from D+ in July 2006. Moody's said the bank's increasing share of the retail market boosted profitability and enhanced its credit risk profile. As of March 31, 2006, ICICI Bank's total assets were valued at $56.3 billion. Profit after tax for that period was $569 million compared with $449 million for the same period in 2005. The bank's cost/income ratio is relatively low at 42%, and its gross non-performing loans were a mere 1.7%. ICICI boasts one of the largest banking networks in the country, comprising approximately 600 branches and more than 2,200 ATMs. In an effort to better serve the international banking needs of domestic corporations, it has also extended its international presence, opening up subsidiaries in the United Kingdom, Russia and Canada.
* K.V. Kamath, managing director and CEO
www.icicibank.com
INDONESIA
Bank Danamon
Ratings agencies have noted gradual improvements in Danamon's financial fundamentals. Although for the year ended December 31, 2006, consolidated net profit after tax (NPAT) declined by 34% on the previous year to Rp1.3 trillion ($142 million), the bank reported a 16% increase in NPAT compared to 2005. Operating income in 2006 increased by 23% on the previous year to Rp7 trillion, which was attributed to the bank's widening net interest margin, boosted by growth in its loans business. Danamon has focused on loans to the micro, small and medium market segment, which has paid off. Its mass-market strategy also appears to be reaping rewards, with loans to that segment increasing by 71% year-on-year, which was also helped by its acquisition of a majority stake in Indonesia's second-largest motorcycle financier, Adira Finance.
* Sebastian Paredes, president director
www.danamon.co.id
JAPAN
Mizuho Financial Group
The wave of consolidations taking place in the Japanese financial sector is hitting banks hard: Mizuho Financial Group, Japan's second-biggest lender by assets, saw profits fall by 23% in the third quarter of 2006, but it is taking actions to deal with its problems. In January it announced plans to merge two of its affiliated brokers to create Japans fourth-largest securities company by assets and its third-largest by revenues. That followed a massive fundraising in November that shored up the bank's capital and gave it cash to expand in investment banking in Japan and abroad and benefit from increasing overseas takeovers by Japanese companies. As part of this move, Mizuho listed on the New York Stock Exchange in 2006 and received a license to conduct commercial banking and investment banking operations in the United States.
* Terunobu Maeda, president and CEO
www.mizuho-fg.co.jp
KAZAKHSTAN
Kazkommertsbank
In an effort to strengthen its service offering for corporate customers with business ties in Russia, Kazkommertsbank announced it would purchase an equity stake of 52.11% in the Russian commercial bank Moskommertsbank. The acquisition is subject to approval, but it is anticipated that Kazkommertsbank will also receive the remaining 47.89% of the Russian bank's equity for trust management, giving it total control of Moskommertsbank. In Kazakhstan Kazkommertsbank has what analysts describe as a "substantial domestic franchise," although they point to risks associated with rapid growth of its loans business, which is concentrated in the individual borrower and construction sectors. As of June 30, 2006, the bank was the market leader in terms of total assets and loans. The bank is Kazakhstan's largest corporate lender, with a gross corporate loan portfolio of KZT837 billion ($6.78 billion) and deposits of KZT20 billion ($1.62 billion) as of June 30, 2006.
* N.A. Zhusupova, chairman
www.kkb.kz
KYRGYZSTAN
Demir Kyrgyz International Bank
Last year Demir Kyrgyz (DKIB) became the first bank in Kyrgyzstan to receive principal membership in Visa International, which will allow it to issue credit cards directly. It has also made significant inroads in introducing electronic banking in the form of its Internet banking product, DEMiR Net, as well as its plastic cards business and its ATM and point-of-sale network. The bank recently announced that, in an effort to offer its customers more direct access to EU financial markets, it is in negotiations with Rotterdam's Demir Halk Bank to form closer ties. The European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC), each of which has a 15% share, will remain shareholders of DKIB. A Turkish investor holds a majority stake in the bank. DKIB's total assets have increased steadily over the past few years to stand at approximately $29 million at the end of 2005.
* Ahmet Kamil Parmaksiz, general manager
www.demirbank.kg
MACAU
Seng Hang Bank
As well as facilitating the development of financial services in Macau with the establishment of the Financial and IT Center of Macau, Seng Heng Bank is expanding its global footprint, opening a representative office in Portugal aimed at capturing a chunk of the cross-border business between Europe and Portuguesespeaking countries. "We have a clear strategy for international growth," Seng Heng's CEO and executive director Patrick Huen stated. China is increasing trade with Portuguese-speaking countries in Africa, and Seng Heng Bank is clearly positioning itself to gain a share of this business. It is also forging partnerships with smaller to medium-size banks in China and Vietnam. The bank's profitability has increased substantially from a net profit of $30 million in 2005 to $42 million in 2006. It also hopes to expand its fund management business via its participation in the FIT Center, which aims to provide one-stop shopping for financial services in Macau.
* Patrick Huen, CEO
www.senghengbank.com
MALAYSIA
HSBC Bank Malaysia Berhad
HSBC Malaysia is the leading foreign bank in Malaysia based on pretax profit and return on assets (1.6%). In the first half of 2006, pretax profit at the global bank's Malaysian operations reached MYR413 million ($119.5 million). It also boasts a lower NPL ratio (2.4%) than some of the leading local banks. In 2006, income from its personal financial services business increased 39% year-on-year, and net interest income increased by a substantial 45%. It has a dominant market share in treasury products and is the top underwriter and arranger of syndicated loans in the Malaysian market. The bank continues to expand its domestic branch network and provides a wide range of services in the Malaysian market, encompassing retail, commercial, corporate and institutional banking. It is looking to leverage its relationship with its Islamic banking division, HSBC Amanah, to roll out Shariahcompliant products to the Malaysian market. It has a long and well-established presence in the country dating back to its acquisition of the Mercantile Bank Ltd.
* Zarir Cama, deputy chairman and CEO
www.hsbc.com. my
MONGOLIA
Khan Bank
The emergence of Khan Bank, formerly Agricultural Bank of Mongolia, as a major banking force is a success story. Having overcome operational difficulties in the 1990s, new management, including ownership by H.S. securities of Japan, has helped turn the bank's fortunes around. Last year saw the bank continue to post strong financial results, with net earnings increasing to $10.4 million in 2006. Earnings were boosted by substantial growth of more than 60% in customer deposits, which reached $255 million. Marked improvements were also made in non-performing loans, which fell from 3% in 2005 to 1.95% of total loans in 2006, well below the levels recorded by other banks. It also outperformed other Mongolian banks on performance measures such as ROE, which was 57.3% in 2006 compared to an average of 18.2% for the other three large Mongolian banks. It also boasts the highest market share (19.56%) of loans.
* J. Peter Morrow, CEO
www.khanbank.com
PAKISTAN
Habin Bank
Considered to be the largest bank in Pakistan, with more than 1,400 branches in addition to an extensive international network comprising 55 branches, Habib Bank offers a wide range of banking services encompassing retail, commercial, corporate, investment and Islamic banking. It is a leading proponent of Internet banking via its online offering hblEbank, which enables customers to check balances and transfer money. Recently, the bank has introduced centralized global processing as part of its strategy of diversifying revenues in consumer banking, corporate financing and emerging overseas markets. It has also placed considerable emphasis on risk management and corporate governance. The bank is 51% owned by the Aga Khan Fund for Economic Development, and analysts anticipate that the State Bank of Pakistan will seek to dilute its stake in Habib Bank by floating 10% to 15% of its holding on the stock market.
* R. Zakir Mahmood, president and CEO
www.habibbankltd.com
PHILIPPINES
Bank of the Philippine Islands
Although some analysts questioned the rationale of BPI's acquisition of Prudential Bank in 2005, in 2006 the bank still managed to achieve a sizable increase (8% on 2005 levels) in consolidated net income, which reached P9 biUion ($186.9 million). The increase was largely the result of 9% growth in the bank's total revenues. As most of the Philippine banks are rebuilding their loan books, analysts expect them to move into higher-risk areas such as consumer and SME lending. BPI already has experience in these higher-risk sectors. In 2006 net loans at BPI increased by 6% to P243 billion ($5 billion). Consumer lending experienced the biggest year-on-year increase (11%), boosted by a recovery in the local real estate market. It also boasts one of the most extensive branch networks, with approximately 900 branches, and plays a significant role in the overseas remittance business from Filipinos living abroad.
* Aurelio Montinola III, president and director
www.bpi.com.ph
SINGAPORE
DBS
Competition in Singapore is fierce. UOB Group achieved strong growth in the first nine months of 2006, with net profit after tax increasing 59.2%. However, its rise in earnings was due mainly to a onetime gain from the divestment of Overseas Union Enterprise and Hotel Negara. DBS, by contrast, announced record earnings for fullyear 2006, up 32% from the previous year. For the fourth quarter, net profit rose 45%. The strong performance for both the full year and the fourth quarter was underpinned by continued growth in the bank's customer franchise as interest and fee income reached new annual and quarterly highs.
* Jackson Tai, CEO
www. dbs.com
SOUTH KOREA
Shinhan Bank
Kookmin's planned merger with Korea Exchange Bank will put it among the world's top 60 banks, but it has yet to complete the often-difficult task of integrating two banks. Archrival Shinhan has already successfully merged its operations with those of Chohung Bank. According to Moody's, Shinhan Bank has developed what the ratings agency describes as a "significant defensible franchise," comprising both corporate and SME banking. The ratings agency also commends Shinhan, Korea's second-largest bank, for its above-average financials and the fact that it benefits from the technical expertise of foreign shareholder BNP Paribas. In 2006 its ROE of 18.56% was higher than that of other leading Korean banks, and its cost/income ratio was a manageable 49.75%. Its loans business continues to grow, increasing by approximately 6% year-on-year from 2005, with most of its exposure in the retail loan and SME market segments. Net income in 2006 increased to KRW1.7 trillion ($1.8 billion), up from KRW1.5 trillion in 2005.
* Shin Sang-Hoon, CEO
www.shinhan.cotn
SRI LANKA
Commercial Bank of Ceylon
In 2006 Sri Lanka's most highly capitalized bank raised $65 million in the form of a two-year syndicated loan and, in an effort to boost its tier-2 capital, issued $5 million in five-year bonds as part of a private placement. Last year also saw it introduce key innovations in electronic banking, including enhancing security and controls of its online Internet bank to better service corporates' needs. Online functionality was expanded to include letters of credit, money market investments, check imaging and trade finance. It also announced plans to merge with smaller rival NDB Bank. The bank's profit in 2006 was Rs2.8 billion ($25.8 million), an increase of more than 20% over the preceding year. The bank's cost/income ratio remains relatively high at 61%, but at 2.74% its NPL ratio continued to decline. Expansion of the bank's network means that it now boasts more than 150 branches and approximately 280 ATMs.
* M.J. C. Amarasuriya, chairman
* A. L. Gooneratne, managing director
www.combank.net
TAIWAN
Taiwan Cooperative Commercial
Taiwan Cooperative Commercial Bank, which was privatized in 2005, merged with The Farmers' Bank of China in May 2006, making it the largest commercial bank in Taiwan, with approximately 300 branches. It has also been busy diversifying its revenue base by setting up business units encompassing asset management and insurance brokerage. Analysts believe that the bank's extensive branch network and its leading loan portfolio give it a strong platform to expand into corporate and retail banking, as well as into wealth management. It has also signed a memorandum of understanding (MoU) with French bank BNP Paribas to explore mutual areas of cooperation including bancassurance and asset management. Its financial fundamentals are strong, with unaudited net profits of NT$9.07 billion ($274.4 million), compared with NTS2.63 billion in 2005.
* Teh-nan Hsu, chairman and president
www.tcb-bank.com.tw
THAILAND
Siam Commercial Bank
Despite concerns about the risk factors associated with the bank's rapid loan growth, particularly in the SME market segment, ratings agency Moody's placed a positive ratings outlook on SCB based on the success of its expansion into consumer banking and enhanced risk management. Analysts note that the bank has a solid capital base and that its expansion into lending to SMEs also supports its strategy of becoming a premier universal bank. Thailand's third-largest bank saw its asset base expand significantly last year, recording the highest level of loan growth (12.5% in the first half of 2006), particularly in the SME and hire purchase segments, which form part of its new growth strategy. Despite increased tax expenses in the first half of last year, high loan growth saw the bank's net interest margin increase to 3.6%. Non-interest income also increased by almost 15% year-on-year to THE 18.9 billion ($584.2 million) on the back of growth in fee and service income from its cards business and subsidiaries. Through write-offs and debt restructuring, the bank also reduced its NPL ratio to 3.4% of total loans at the end of last year.
* Khun Kannikar Chalitaporn, president
www.scb.co.th
UZBEKISTAN
Asaka Bank
Uzbekistan's second-largest bank plays an integral role in financing investment projects. It has financed more than 50 export-oriented and import replacement projects, which helped create thousands of jobs. The bank recently attracted credit lines from international banks, including $8 million from Islamic Development Bank. The financing will assist the bank in extending project financing loans to newly privatized SMEs.
* Shokir J. Juraev, chairman
www.asakabank.com
LATIN AMERICA
ARGENTINA
Banco Macro
Macro, which changed its name from Macro Bansud this year, appears unstoppable. While other banks are still recovering from Argentina's 2001 financial debacle, Macro-still controlled 100% by Argentine capital-has posted 16 consecutive quarterly profit gains. Net income rose 62% year-on-year in fiscal year 2006 to $136.7 million. Assets rose from $2.23 billion in 2005 to $3.05 billion in 2006. Personal loans, which are a strategic product for the bank, grew strongly last year and helped drive profit gains. Its recent purchase of Banco Bisel, an Argentine bank, expanded Macro's nationwide presence and gives it the country's largest branch network. Macro has also brought the first IPO by an Argentine company on the NYSE since 1997.
* Jorge Horacio Brito, president
www.bansud.com.ar
BARBADOS
FirstCaribean International
Barbados-based First-Caribbean remains the only truly regional bank for the English-speaking Caribbean, offering a full range of financial services in 17 territories. Formed in 2002 with the merger of CIBC's and Barclays Bank's Caribbean operations, CIBC became the bank's majority shareholder in 2006 when it acquired 91.5% of shares. FirstCaribbean's assets are $12.4 billion, and it has a market capitalization of $2.8 billion. Net income rose 24% during fiscal year 2006 to $170.6 million. Last year the bank rolled out Internet and phone banking services in all its markets. The bank's foundation dedicates 1% of its prior year pre-tax profits to community projects each year. FirstCaribbean is investing $9 million to build a state-of-the-art regional business center.
* Charles Pink, CEO
www.firstcaribbeanbank.com
BOLIVIA
Banco de Crédito de Bolivia
Banco de Crédito's corporate finance, international trade, treasury and cash management services make it the strongest player in the corporate sector while also offering consumer banking services and special products for SMEs. Banco de Crédito maintains the largest ATM network, with 125 machines nationwide. The bank operates 57 branches in seven of Bolivia's nine provinces. In December 2006 total assets were $650.5 million, a 14% year-on-year increase. Its non-performing loan ratio was the market's lowest, at 3.6%. Last year the bank had a 21.3% market share of deposits, up substantially from 16.7% in 2005.
* Gianfranco Ferrari, general manager
www.bancodecredito.com.bo
BRAZIL
Banco do Brasil
Last year, as it commemorated the centennial anniversary of its stock exchange listing, Banco do Brasil was able to show off some impressive numbers: a market capitalization of $19.2 billion, $137.9 billion in total assets and a 17.3% share of the overall Brazilian banking market. Net income rose 40.4% year-on-year in 2006 to $2.35 billion, driven in part by a 24.9% increase in its loan portfolio to $57.92 billion. Return on equity rose to 35.9% in 2006 from 26.8% in 2005. Banco do Brasil was particularly instrumental in supporting the country's booming export and agribusiness sectors. With 42,000 ATMs, the bank has the largest such network in Latin America, in addition to 4,000 branches.
* Antonio Francisco de Lima Neto, CEO
www.bb.com.br
CHILE
Banco Santander Chile
The Chilean arm of BSCH likes to go straight to the top. Santander Chile ranks number one in terms of loans ($22.1 billion), deposits ($17.6 billion) and net income ($534 million) through December 2006. It also tops the list in terms of branches (397) and ATMS (1,588). While last year's 22.3% share of the overall Chilean loan market was a slight decline from the preceding year, individual loans rose over the year. Santander Chile saw a rise in market capitalization to $8.7 billion last year from $7.9 billion in 2005. It has the highest solvency ratio among Chilean banks, and its efficiency ratio improved 250 basis points during the period, to 39%.
* Oscar Von Chrismar, CEO
www.santandersantiago.cl
COLOMBIA
Bancolombia
Colombia's largest full-service financial group, Bancolombia continues to grow through mergers and acquisitions of its own. In 2006 it acquired the Banagricola group, El Salvador's leading financial institution, for some $900 million. The deal allows Bancolombia to increase its income and diversify its loan portfolio mix. In 2006 its portfolio of mortgage loans grew by 64.17%, boosting its consolidated market share to 23.1%. With an asset base of $13.8 billion and $1.4 billion in shareholders' equity through September 2006, it is no surprise that Bancolombia is the only Colombian company with a Level III ADR on the NYSE. Its more than 4 million customers are serviced through 701 branches and 1,332 ATMs.
* Jorge Londono Saldarriaga, president
www.grupobancolombia.com
COSTA RICA
Scotiabank costa Rica
In 2006 Scotiabank gave its competitors in Costa Rica much to worry about when it spent $293.5 million to acquire Corporacion Interim, the holding company for Banco Interfin, which is Costa Rica's largest bank in terms of assets. Scotiabank proceeded to merge its existing operations with Interfin, instantly growing its market share for loans to 13% and becoming the country's largest private bank. The combined operations give it 41 branches, more than double its previous 17 branches, and 75 ATMs, up from only 39 before the merger. With a more solid footing, Scotiabank can now bring its international know-how to grow its local business.
* Luis Liberman, senior vice president and general manager
www.scotiabank.com
ECUADOR
Banco Pichincha
Banco Pichincha maintains its lead in the Ecuadorian banking market despite the political upheavals that created a difficult operating environment for the bank and its clients. The largest bank in Ecuador, Banco Pichincha posted a rise in total assets from $2.02 billion in 2005 to $2.35 billion last year. Net profits were also up last year. Its solid fmancials led Bank Watch Ratings to grant Banco Pichincha a risk rating of AA+, the highest for any Ecuadorian financial institution. The bank maintains 235 full branches in 33 cities throughout the country as well as 474 ATMs in 73 cities. Banco Pichincha's corporate social responsibility strategy is focused on investing in health and education programs.
* Aurelio E Pozo Crespo, general manager
www.pichincha.com
EL SALVADOR
Banco Agricola
Now part of Bancolombia Group, Colombia's largest bank, Banco Agricola is poised for further growth in a market in which it is already the dominant player in both the corporate and consumer client segments. The bank's total assets rose 4.49% to $3.34 billion last year. Net profits were also up 57% to $62 million on total income of $292.9 million in 2006 (compared with $256.1 million in 2005). Banco Agricola launched a new technology platform last year. The bank operates 346 branches throughout El Salvador. With remittances from Salvadoran residents abroad now accounting for a substantial contribution to the country's economy, Banco Agricola continues to expand its network of branches and agencies in US regions with large Salvadoran communities.
* Roberto Orellana Milla, CEO
www.bancoagricola.com
GUATEMALA
Banco AGromercantil
Established in 2000, Banco Agromercantil has shown an impressive perf o r m a n c e throughout its rather short history. The young bank's assets rose to $678.9 million through July 2006 from $631.2 million at the end of 2005.The full-service bank is likely to benefit from the recently signed DRCAFTA free trade agreement between Central America, the Dominican Republic and the United States, which will boost trade and investment flows. Banco Agromercantil operates 146 full branches and 1,069 ATMs and maintains a strong Internet banking platform. The bank has six offices in the US (California and Illinois) to service the Guatemalan expatriate community and has expanded its network for remittances through an alliance with Banco de Comercio to cover other US markets.
* Rafael Viejo, general manager
www.agromercantil.com.gt
HONDURAS
Banco Atlántida
Banco Atlántida is the only bank with a truly nationwide presence, with branches in each of the country's 18 provinces. Total assets were $1.27 billion, making it Honduras's largest bank in terms of assets. The bank was a pioneer in online banking in Honduras, and last year it opened the first service center to handle credit card clients, became a MasterCard issuer and created special savings accounts for university students. The bank is investing heavily in technology to boost operational efficiency and adopt international standards.
* Guillermo Bueso, executive president
www.bancatlan.hn
JAMAICA
FirstCaribbean International
Barbados-based FirstCaribbean continues to rank highly among its Jamaican customers. Part of its success is attributable to local managing director Milton Brady, who brings more than two decades of experience as a banker in Europe, Asia, the Americas and the Caribbean with top-tier international banks. In fiscal year 2006 the bank grew its Jamaican loan portfolio by a hefty 75% while core earnings soared by an even more impressive 98%. FirstCaribbean's website was recognized by the Jamaica Stock Exchange last year as a model for best practices.
* Charles Pink, CEO
www.firstcaribbeanbank.com
MEXICO
Banamex
Banamex, Citi's bank in Mexico, is a giant by any measure. There is hardly a city, town or village in Mexico that doesn't have at least one Banamex branch, making it a fixture as common as the local post office or police station. Banamex operates 1,400 branches nationwide. In 2006 its vast ATM network hit the 5,500 mark. This year the bank also opened its first fully automated branch as a pilot that could bring a new wave of technology investments. The bank's assets rose from $48 billion in 2005 to $55 billion in 2006. Banamex continues to give back to the country's communities, launching a social responsibility program in early 2007.
* Manuel Medina Mora, CEO
www.banamex.com
PANAMA
HSBC (Banistmo)
HSBC's $1.77 billion acquisition of Panama's Banistmo-the largest private bank in Central America, with just under $9 billion in assets at the end of 2006-gave it a turnkey entry into the Central American region, as Banistmo already operated banks in Costa Rica, Honduras, Colombia, Nicaragua and El Salvador. The deal prompted Fitch, Moody's and Standard & Poor's to upgrade their ratings outlooks for Banistmo to positive now that the bank is part of one of the world's largest financial groups. Banistmo will be rebranded as HSBC by th end of 2007. It operates 106 branches throughout the region, including 42 in Panama. The bank posted net profits of $69.5 million in first-half 2006, a 23.6% year-on-year gain.
* Joseph Salteiro, executive president
www.banistmo.com
PARAGUAY
Interbanco
Interbanco, owned by Brazil's Unibanco, remains Paraguay's largest private financial institution and is a pioneer in the country's relatively small banking sector. The bank was the first to offer Internet and telephone banking in Paraguay, the first to provide banking information via mobile phones and the first to issue special e-cards for Internet purchases. The full-service bank operates 17 branches and some 70 ATMs. In 2006 it became Paraguay's first American Express card issuer and represents much of the US credit card company's local business. Interbanco was already Paraguay's largest credit card issuer before the deal. Interbanco's assets were $479.4 million through September 2006.
* Claudio Takashi Yamaguti, president
wwrw.interbanco.com.py
PERU
BBVA Banco Continental
BBVA Banco Continental is a solid leader in the Peruvian banking sector. The bank's loan portfolio grew by an impressive 36.7% in 2006, giving it a respectable 27.8% market share. At 1.1% it also boasts the lowest non-performing loan ratio in the market. Net profits were up 21.4% last year, while assets grew from $5.7 billion in 2005 to $5.8 billion in 2006. BBVA Banco Continental's strong fundamentals prompted Fitch Ratings to grant the bank's long-term local currency deposits and bonds a coveted investmentgrade rating. The bank services its clients through a growing nationwide network of 219 branches and 356 ATMs.
* Jaime Sáenz de Tejada, general manager
www.bbvabancocontinental.com
PUERTO RICO
Banco Santander Puerto Rico
A moderate recession and flat to inverted yield curve present a challenging environment for banks in Puerto Rico. Even the largest banks, such as traditional frontrunner Banco Popular, have experienced a downturn. Santander, the island's secondlargest bank in most categories, stepped up to cover the slack, with total assets rising 6% year-on-year to $9.2 billion in the third quarter of last year. Its resilience is due to a strong focus on consumer lending and a staff reduction to cut operating expenses. In 2006 the bank acquired Island Finance, a consumer finance firm with a 34% market share. Santander's mortgage production rose 32% year-on-year through the third quarter of 2006. It operates 62 branches, 148 ATMs, 33 mortgage centers and 70 consumer finance stores.
* Jose R. Gonzalez, president and CEO
www.santandernet.com
TRINIDAD & TOBAGO
Republic Bank
Republic Bank continues to strive to become a truly regional bank for the entire Caribbean. Unlike some of its regional competitors that have focused on former British territories, Republic has expanded into both the English- and Spanish-speaking islands. It currently maintains banking operations in Grenada, Guyana, Barbados, the Cayman Islands and the Dominican Republic. As it grows abroad, it also ranks as the largest Trinidadian bank in terms of loans, deposits and mortgages. Assets rose to $5.28 billion through March 2006 from $4.85 billion a year earlier.
* David J. Dulal-Whiteway, managing director
www.republictt.com
URUGUAY
ABN AMRO Uruguay
ABN AMRO is one of the country's most profitable and efficient financial institutions, emergi n g from Uruguay's 2002 financial crisis-which saw the demise of four private domestic banks-stronger than ever. Analysts attribute the bank's success to its long-term view of the market. Today, ABN AMRO ranks first among private banks in total assets, liabilities, equity and net pre-tax profits. It is also the country's largest private insurer and operates the largest ATM network. Its e-banking services have a more than 27% penetration among both consumer and corporate clients.
* Ricardo Ratazzi, general manager
www.abnamro.com.uy
VENEZUELA
BBVA Banco Provincial
BBVA Banco Provincial saw spectacular growth in 2006, fueled by recurring interest income, optimization of interest margin and the generation of non-interest income. Net income grew by 43.3%, total assets rose by 57.7%, customer deposits advanced by 63%, and its credit portfolio grew by 51.1%. The bank's non-performing loan ratio was an enviable 0.8%. Innovations last year included the introduction of instant payroll loans, which represented 5% of its consumer loan portfolio by yearend. It also continued to support SMEs through micro loans. Provincial's 5.7 million clients have access to 323 branches and 951 ATMS that process 9 million monthly transactions.
* Jose Antonio Colomer, executive president
www.provincial.com
MIDDLE EAST & AFRICA
BAHRAIN
Ahli United Bank
Ahli United Bank has 17 branches in Bahrain, where it controls about 21% of the banking market. AUB, whose influence now extends throughout the region, went public in Bahrain in 2000, when it was given a license to operate as a commercial bank and investment and asset-management institution and to offer related financial services. Last year AUB concluded a $200 million tier2-eligible subordinated debt facility with the International Finance Corporation of the World Bank and secured a $1.2 billion syndicated term debt raised from international banks, which was the largest-ever syndicated loan transaction by any financial institution in the Middle East. AUB is well funded for future growth.
* Adel A. El-Labban, group CEO and managing director
www.ahliunited.com
BOTSWANA
Standard Chartered Bank Botswana
As this southern African country's oldest bank, Standard Chartered Bank Botswana offers the 1.7 million citizens of this economically stable country and thousands of companies of all sizes a wide range of consumer and commercial banking services. The Gabarone-based bank is part of the global Standard Chartered Bank in London yet plays a vital role in the communities where it operates. More than 500 employees, spread through 11 branches and five agencies, turn out an array of services that includes auto and mortgage loans for its consumer banking division and wholesale banking services like cash management and foreign exchange for its corporate clients.
* David Cutting, managing director
www.standardchartered.com/bw
EGYPT
Commercial International Bank (CIB)
Commercial International Bank, Egypt's largest private sector bank, serves more than 500 of the country's biggest corporations. It also has Egypt's largest retail banking network, with 121 outlets and more than 370 ATMs. CIB is Egypt's most profitable and highest-rated bank. Last year a group of US private equity firms led by Ripplewood Holdings acquired a 19% stake in CIB from the National Bank of Egypt. CIB has alliances with Al Rajhi Banking & Investment in Saudi Arabia, with Commercial Bank of Qatar and with Abu Dhabi Commercial Bank in the United Arab Emirates. It also has a representative office in Dubai. CIB's shares trade on the Cairo and Alexandria Stock Exchange and are also listed on the exchanges in Kuwait and Abu Dhabi.
* Hisham Ezz Al-Arab, chairman and managing director
www.cibeg.com
ETHIOPIA
NIB International Bank
Created in 1999, this privately owned bank is one of the country's youngest commercial banks and has grown rapidly since 2003, expanding its branches from 13 to 21 and its staff from 468 to 768. Assets have grown by about 20% in the fiscal year that ended in June 2006,and net profit was up by an average of'25% over the past three years. The bank offers retail services while using a network of correspondent banking relationships with major global banks to carry out transactions for businesses.
* Amerga Kassa, president
GAMBIA
Trust Bank
Gambia's only indigenous bank run and managed by Gambians, Trust Bank offers a wide range of customized products and services for consumers and corporates.This Central African bank is using technology and 11 locations around the country to attract an English-speaking populace still largely dependent on a cashbased economy. Meanwhile, it offers Gambian businesses the foreign exchange services, export-financing facilities and other services they need to do business around the world.
* Pa Macoumba Njie, managing director
www.trustbank.gm
GHANA
Ghaa Commercial Bank
Based in Accra and listed on the Ghana Stock Exchange, Ghana Commercial Bank is this western African country's largest indigenous bank. The institution continues to play a role in developing the nation's economy as it meets the financial needs of households and small and mediumsize businesses. Its savvy managers have also highlighted the country's political and economic stability and an English-speaking populace to entice corporations intent on tapping into the region. A network of 133 branches and expanded hours make banking easier for retail customers.
* Lawrence Newton Adu-Mante, managing director
www.gcb.com.gh
GUINEA
International Commercial Bank
Profits keep soaring by double digits at this West African bank and were up 80% for the first three quarters of 2006. Part of the global banking network of the Swiss-based ICB Financial Group Holdings, International Commercial Bank has successfully targeted products and services to corporate and retail clients and seen its deposits, loans and foreign exchange transactions grow. It has also invested in an online banking system and expanded its branch network to grab a larger share of the market in this French-speaking country of 9 million people.
* Seshagiri Rao, CEO
www.icbank-guinea.com
ISRAEL
Bank Hapoalim
Although Bank Hapoalim's thirdquarter results for 2006-the most recent available-were depressed by the war in Lebanon, the bank remained strong, as did the Israeli economy. Net profit in the first nine months increased 14.8% compared to the same period of 2005. Net return on equity for the first nine months of 2006 was 22% in annual terms, compared to 20.5% for the same period in 2005. Meanwhile, net return of operating profit on equity, after taxes, for the first nine months of 2006 was 15.5% in annual terms compared to 15% in the same period in 2005. At the same time, the bank remains solid as a rock: Its ratio of tier-1 capital to risk assets increased to 7.37%, versus 7.02% at the end of 2005.
* Zvi Ziv, president and CEO
www.bankhapoalim.com
JORDAN
Arab Bank
Arab Bank is the largest bank in Jordan and one of the top five banks in the Arab world. The group has more than 350 branches in 35 countries and had assets of $32.5 billion at the end of 2006. Arab Bank's net income rose 32% last year to a record $374 million. Arab Bank combined the operations of its European branches and subsidiaries last year to form the European Arab Bank, which is incorporated in the United Kingdom. The bank provides corporate and retail banking services, as well as asset management and project finance.
* Abdel Hamid Shoman, chairman and CEO
www.arabbank.com.jo
KENYA
Barclays Kenya
Majority-owned by Britain's Bar clays Bank, this East African financial institution saw its 2006 pre-tax profits jump by 19% to nearly $93.4 million. The financial institution is Kenya's largest bank by asset value, with a $1 billion balance sheet, and keeps growing. Customer deposits were up by 15% last year while loans jumped by 13%. The bank is intent on expanding its corporate business. In operation continuously for 88 years, Barclays Kenya is listed on the Nairobi Stock Exchange and employs nearly 2,000 people in more than 60 outlets across the country.
* Adan Mohamed, managing director
www.barclays. com/africa/kenya
KUWAIT
Gulf Bank
Gulf Bank has one of the largest branch networks in Kuwait, with 38 branches and six additional branches planned in 2007. The bank handles more than 90% of its transactions electronically. Gulf Bank reported record earnings in 2006 for the seventh consecutive year. With retail, corporate, international and investment banking divisions, Gulf Bank is one of the fastest-growing banks in the region. Customer deposits grew by 55% last year, while lending increased by more than 60%. Gulf Bank is also one of the highest-rated banks in the region.
* Bassam Yusuf Alghanim, chairman and managing director
www.gulfbank.com.kw
LEBANON
BLOM Bank
BLOM Bank, Lebanon's largest bank, is expanding in what it perceives as low-risk countries with high growth potential. In Egypt it is strengthening and expanding its subsidiary, which it acquired in December 2005, and will be opening 10 to 15 new branches in the country in 2007. BLOM Bank Egypt recently became a licensed securities custodian. In Lebanon BLOM Bank has 47 branches, with four more planned to open this year. It also has an investment bank, an insurance company and an Islamic bank, called BLOM Development Bank. In 2006 BLOM Bank successfully placed Lebanon's first local-currency-denominated eurobond issue.
* Naaman Azhari, chairman and general manager
www.blom.com.lb
MOROCCO
Attijariwafa Bank
Created through Banque Commerciale du Maroc's successful acquisition of Wafabank nearly three years ago, Attijariwafa is now Morocco's largest private bank. With assets of nearly $15 billion, it is now one of the 10 largest African banks. Its expertise in a range of banking services has helped it gain a 27.3% share of the deposit market and a 24.8% portion of the loan market as of September 2006. Yet an aggressive regional expansion strategy, which so far has enveloped France, Belgium, Tunisia and Senegal, may be slowed because of a limited track record, analysts say.
* Khalid Oudghiri, president director-general
www.attijariwafabank.com
NAMIBIA
Standard Bank Namibia
Part of the Standard Bank Group based in Johannesburg, South Africa, Standard Bank Namibia is the country's largest commercial bank and has operated in this southern African country of 2 million people for more than 90 years. The Windhoekbased institution can tap into the expertise and financial backing of its South African parent as it uses a network of nearly nine branches and 33 agencies to deliver consumer finance products as well as cash management, trading and other corporate services to companies of all sizes.
* Mpumzi Pupuma, managing director
www.standardbank.com.na
NEGERIA
First Bank of Nigeria
With about $6 billion in assets, First Bank of Nigeria is one of the three largest financial institutions among the 25 banks operating in this giant West African nation. While facing increasing competition to its strong corporate banking franchise, the bank is successfully carving out a strong position in the fast-developing retail sector. Created in 1894, the bank has nearly 400 branches. Analysts laud the bank's sound governance practices yet note its need to increase capital levels, especially in the face of high-risk loans to businesses. Talks continue on the proposed merger with Togo-based Ecobank Transnational.
* Jacob Moyo Ajekigbe, CEO and managing director
www.firstbanknigeria.com
OMAN
BankMuscat
BankMuscat, Oman's leading bank, saw its assets increase by more than 48% last year to $7.7 billion and its earnings rise by 33% to $157 million. The bank's core business activities comprise commercial banking, wholesale banking and international operations. BankMuscat was a mandated lead arranger for two large petrochemical projects in 2006, Aromatics Oman and Octal Petrochemicals. The bank acquired a 43% stake in Mangal Keshav, a securities firm in India, where it also owns a 22% stake in Centurion Bank of Punjab. BankMuscat recently opened its first branch in Saudi Arabia.
* AbdulRazak Ali Issa, CEO
www.bankmuscat.com
QATAR
Qatar National Bank
Qatar National Bank, the largest bank in Qatar, reported a 30.4% rise in earnings last year and a 43.2% increase in assets. Loans and advances were up nearly 47% from a year earlier. QNB was lead manager of the initial public offering last year of Al Rayan Bank, which was six times oversubscribed. It also issued the first corporate sukuk in Qatar for Qatar Real Estate Investment. QNB was the official bank for the Asian Games, which took place in Doha in December. The bank is supporting and developing events aimed at building and strengthening a sense of community in Qatar.
* Ali Sharif Al-Emadi, acting CEO
www.qatarbank.com
RWANDA
Banque Commercial du Rwanda (BCR)
Banque Commerciale du Rwanda is setting standards for customer service and innovation as it supports the redevelopment of an economy ravaged by the genocide of the 1990s. In the Rwandan government's first major privatization deal, Actis, a UK-based private equity investor that specializes in emerging markets, bought an 80% share of the then-fmancially troubled BCR in December 2004. The government retains most of the remaining 20% stake. As the country's second-largest commercial bank, BCR offers corporations and small businesses a full range of functions, including loans, trade finance and treasury services.
* David Kuwana, managing director
www.bcr.co.rw
SAUDI ARABIA
Samba Financial Group
Samba Financial Group is a leader in retail and commercial banking in Saudi Arabia and plans to become a leading regional bank. In November 2006 it announced its intenti