THE WORLD'S BEST BANKS

HEADNOTE

WORLD'S BEST BANKS

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A growing global economy made it somewhat easier to be a banker in the past 12 months,

as credit risks generally declined and demand for banking services was brisk. The skills of the world s bankers are being tested at present, however, as a weaker underwriting environment is forcing greater reliance on advisory and other fees, including those from mergers and acquisitions. Ironically, it is the banking industry itself that is making the biggest contribution to M&A activity, as industry consolidation continues apace in many countries.

The winners this year are those banks that attended carefully to their customers' needs and accomplished enviable results while preparing for an uncertain future. Our selections begin with the half-dozen truly global banks that provide the best banking services in these specific sectors: corporate, retail, private, asset management, custody and investment banking. Global Finances editorial team also identified the best bank in 97 countries.

In selecting these top banks, we considered factors that range from the quantitative objective to the informed subjective. Objective criteria were growth in assets, profitability, geographic reach, strategic relationships, new business development and innovation in products. Subjective criteria included the opinions of equity and credit ratings analysts, banking consultants and others in the industry. The winners are leading banks that may not be the largest, the oldest or the most diversified in a given country or sector, but rather the best-the bank with which corporations around the world would most likely want to do business.

Within this listing of the World's Best Banks we have included our May 2004 list of the Best Emerging Market Banks. Contributors: Gordon Platt, Anita Hawser, Fiona Haddock, Santiago Fittipaldi and Johnathan Gregson.

BEST GLOBAL BANKS

BEST CORPORATE BANK

CITIGROUP

Citigroup has more corporate customers in more countries than any other bank. Its geographic reach and product range are unequaled, and it delivers consistent, high-quality service. Citigroup keeps a keen focus on customer needs and tailors its products accordingly. The bank's local expertise and global product platform enable it to excel in more emerging markets than its competitors. Citigroup's stated ambition is to be number one in every product category in which it does business. The bank is not afraid to make substantial commitments to technology and strategic acquisitions to strengthen its core franchises. Citigroup's biggest acquisition this year was its $2.7 billion purchase of KorAm Bank, the sixth-largest bank in South Korea. Citigroup's capital markets and banking income was $1.5 billion in the second quarter of 2004, a 28% increase over the same period a year earlier.

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Robert Druskin

Citigroup

Stephen Green

HSBC

A lull in investment banking hurt underwriting volumes in equities and fixed-income markets, but revenue from advising on mergers and acquisitions was up 45%. Lending revenues increased 26%, due mainly to an improved performance in credit derivatives and the effect of the KorAni acquisition. Transaction services income was $261 million, a 45% increase over the second quarter of 2003. Citigroup continues to fire on all cylinders.

* Robert Druskin, CEO, global corporate and investment bank www.citigroupgcib.com

BEST CONSUMER BANK

HSBC

HSBC's purchase of a 19.9% stake in China's Bank of Communications in August 2004 will give it a strong foothold in a market of 1.3 billion people. As an early mover, HSBC has gained the largest foreign presence in China's financial services sector. It holds a 9.9% stake in Ping An Insurance and is hoping to set up a credit-card joint venture with Bank of Communications, which has 2,700 branches in 137 Chinese cities. London-based HSBC, Europe's most profitable company in the first half of 2004, is looking for acquisitions elsewhere in Asia. As Global Finance went to press, it was competing with Japan's Shinsei Bank for the Aplus consumer-finance business of UFJ Holdings. It was also in the running for a stake in Takefuji, Japan's most profitable consumer lender.

HSBC is exporting the expertise it gained from its $14.8 billion takeover in 2003 of US consumer finance company Household International. HSBC is operating under the Household brand name of Beneficial in the Polish market, for example, where it purchased Polski Kredyt Bank, now HSBC Bank Polska, in October 2003. Closer to home, HSBC is partnering with clothing retailer Marks & Spencer in an effort to become a larger credit card issuer in the UK. HSBC purchased Marks & Spencer's financial-services unit in July 2004.

* Stephen Green, CEO

www.hsbc.com

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WORLD'S BEST BANKS 2004

BEST PRIVATE BANK

UBS

UBS, the world's largest private bank, is expanding into countries outside of its home base of Switzerland with a string of European acquisitions. Earlier this year UBS purchased the UK private client investment manager Laing & Cruickshank Investment Management. It also acquired Scott Goodman Harris, which primarily serves executives and company directors, a key market for UBSs wealth-management business in the UK. These acquisitions followed the purchases in 2003 of Lloyds Bank in France and the German private-client business of Merrill Lynch. UBS is seeking more such acquisitions in Italy and Spain. The bank's clients have access to a wide range of products that are tailored to fit the specific tax and legal requirements in each country. UBS also launched a US-based private wealth-management group, targeting investors with more than $10 million in assets.

The bank's second-quarter 2004 earnings rose 28% from the same period a year earlier, largely due to private banking fees. Asset-based fees from loyal wealth-management clients help UBS balance variable revenue from its investment banking and securities unit.

* Peter A. Wuffli, CEO

www. ubs.com

BEST ASSET MANAGEMENT BANK

UBS

UBS puts the emphasis on reliable returns and distinctive service as it seeks to please its discerning asset-management clients. UBS Global Asset Management is one of the world's largest fund managers, with about $460 billion under management. The division offers a broad range of services and investment options and employs 2,600 people in 21 countries. Part of Switzerland's biggest bank, the asset-management business relies primarily on fundamental analysis of securities in implementing its value-oriented investment philosophy. However, the alternative and quantitative investment unit offers specialized investments, including hedge funds, while the real estate business actively manages investments in property.

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Peter A. Wuffli

UBS

Thomas A. Reny!

The Bank of New York

The bank's clients include corporate and public pension plans, financial institutions and advisers, central banks, governments and charities. UBS has $1.8 trillion in invested assets among its various global businesses, including wealth management and investment banking.

* PeterA.Wuffli, CEO

www.ubs.com

BEST CUSTODY BANK

BANK OF NEW YORK

Bank of New York s product range, technology and customer service have kept it at the top of the global custody business for many years. Assets under custody totaled $8.7 trillion as of June 30, 2004, up from $7.8 trillion a year earlier.The bank's diversified securities servicing and fiduciary operations are driving earnings growth.When equity-market trading volumes dried up in the second quarter of 2004, the bank's execution and clearing revenue declined. However, fixed-income-linked areas, securities lending, corporate trust and global collateral management generated healthy gains.

Bank of New York s strong depositaryreceipts bvisiness has been boosted by rising levels of capital raisings by non-US companies, particularly those in Asia, and by active cross-border investing. Earlier this year, the bank introduced a system that enables institutional investors to electronically trade ordinary shares in foreign markets and automatically convert those shares to American depositary receipts. Bank of New York's network of subcustodians encompasses more than 100 countries.

* Thomas A. Renyi, chairman and CEO

www.bankofhy. com

BEST INVESTMENT BANK

CITIGROUP

Citigroup scored a remarkable triumph for a commercial and retail bank by out-performing the cream of the crop in the first annual Global Finance Investment Banks Awards, announced in the June 2004 issue. Citigroup's rise to the top of the investment banking world began with the $140 billion merger in 1998 between Travelers and Citicorp, which brought it the Salomon Brothers franchise. In January 2000 Citigroup acquired the global investment banking operations of London-based Schroders, adding 1,400 professionals in investment banking and equity capital markets. Citigroup already had combined the Tokyo operations of its investment banking arm with Nikko Cordial. Citigroup's domination of many of the world's key investment banking markets is largely the result of acquisitions and alliances, as well as the application of its universal-banking business model.

As competition intensified during the lean years of 2002-2003, more and more corporate clients began demanding that banks that advised them on mergers and financings also supply them with loans.

* Robert Druskin, CEO, global corporate and investment bank

www.citigroupgcib.com

NORTH AMERICA

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CANADA

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SCOTlABAUK

Canada's most international bank, Scotiabank operates in 50 countries. It sees significant opportunities in emerging markets with their above-average economic growth rates and young populations. But international banking is just one of three engines of growth for this disciplined and diversified financial institution. Scotia Capital, the global corporate and investment banking division, is a leader in debt and equity markets in Canada and serves other niche markets around the world. Global Finance named it as the best investment bank in Canada for 2004. Scotiabank is also increasing its market share in domestic banking, including wealth management, and the bank rates highly in customer satisfaction. It has a national network of 960 branches and more than 2,500 automated teller machines. Scotiabank has passed its internal goal of achieving a return on equity in the 16%-to-19% range. In the first six months of 2004, its ROE was 21.8%. Scotiabank has a strong capital position, a 12-year record of consecutive dividend increases and an unbroken record of dividend payments since 1833.

* Richard E.Waugh, president and CEO

www.scotiabank.com

UNITED STATES

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CITIGROUP

Citigroup continues to strengthen its main businesses in the important US market. On July 1, 2004, it completed the purchase of Iowa-based Principal Residential Mortgage for $1.26 billion. This acquisition followed the purchases in 2003 of Golden State Bank in California, as well as the credit card business of retailer Sears. In August 2004 Citigroup agreed to acquire the derivatives markets business of Knight Trading Group for $225 million in cash. This acquisition will strengthen the bank's US equities business and give it market-making capabilities in listed equity and fixed-income options. In July of this year Citigroup acquired Lava Trading, which gave it a leading position in electronic execution. Citigroup's US corporate clients praise its outstanding combination of investment banking and commercial banking services. From corporate lending to cash management, trade finance and securities services, Citigroup provides all the help companies need to meet their daily business needs.The bank's strategic services include advice on mergers and acquisitions, equity and debt issuance, structured finance and balance sheet restructuring.

* Charles Prince, CEO

www.citigroup.com

EUROPE

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ALBANIA

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SAVINGS BANK OF ALBANIA

Raiffeisen won the bidding race in the privatization of Albania's market leader, the $126 million deal that took shape April 2003. Even before then, Savings Bank of Albania had posted a 20% profits boost and slimmed down its workforce and branch network by more than 60%. Expect a name change to Raiffeisen Bank Albania and a move away from strictly deposit-taking to a broader array of retail services, including the launch of a new ATM network and distinct units specializing in corporate and commercial lending. With its market share of 60% of all liabilities, the reborn Raiffeisen Albania is likely to set new standards of banking services in Albania.

* Steven Grunerud, CEO

www.bkursimeve.com.al

AUSTRIA

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BANK AUSTRIA CREDITANSTALT

Austria's largest banking group-and the 37th largest banking group in Europe by market capitalization at euro7 billion ($8.5 billion)-Bank Austria Creditanstalt is the best bank for the second year running. Despite the restructuring problems that its German parent, the HypoVereinsbank Group (HVB), faces, its financial position is boosted by the success of its operations in 11 Central and Eastern European countries, particularly Poland, as well as its strong domestic franchise. In the first six months of this year, net income before taxes at its CEE operations increased 86%. HVB's public offering of up to 25% of its shares in BA-CA last October and the transfer of its CEE operations to the Austrian banking group was viewed favorably in terms of bolstering BA-CAs franchise in the region.

* Erich Hampel, CEO

www.ba-ca.com

BELARUS

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PRIORBANK

Raiffeisen's timing of its acquisition of a controlling 61.3% of Priorbank looks spot on, as 2003 was a great year for Belarusian banks, with assets growing by 60% and profits nearly trebling across the board. Priorbank was no exception, with rapid growth across its range of businesses resulting in all principal bank indicators more than doubling.

Foreign ownership has strengthened Priorbank's credit and international banking connections. Recent deals include an IFC-backed loan, the first of its kind in Belarus, and an EBRD-arranged syndicated loan.

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Priorbank expects to improve on its financial results again this year, with growth coming from a new focus on retail banking and, on the corporate side, more emphasis on SMEs (small and medium-size enterprises) and individual entrepreneurs.

* Sergey Kostyuchenko, chairman

www.priorbank.by

BELGIUM

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KBC BANK

Fortis Bank was last year's winner. However, the sale of its Spanish insurance unit and the flotation of its US insurance operations, followed by the acquisition of a 50% stake in Banco Comercial Portugues' bancassuraiice activities, may send conflicting signals in terms of its banking/insurance mix going forward.

KBC Bank, while not as well capitalized as Fortis, is still ranked among Europe's top 22 banks, with a market capitalization of euro14.8 billion and an improved 2004 ROE of 13.3%. It also has an established foothold in CEE, particularly the Czech Republic, where it has a 25% retail market share. Despite some problem loans at its Polish subsidiary Kredyt Bank, its loan book was overhauled in 2003, and its CEE activities (which increased its profit contribution by 51% from the first quarter to the second quarter this year) are expected to provide a well-diversified revenue stream.

* Willy Duron, CEO

www.kbc.be

BOSNIA-HERZEGOVINA

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RAIFFEISEN BANK BH

Austrian-owned Raiffeisen Bank Bosnia i Hercegovina wins the award this year for being not only the largest bank in this Balkan republic, with around 20% overall market share, but the most consistently profitable.

The bank continues to build on its market leadership position across all business segments with a policy of stable growth. It is launching a range of tailor-made products for corporates, SMEs and joint-venture players and should benefit from cross-selling with Raiffeisen's locally based insurance, leasing, brokerage and investment groups. Cooperation with the EBRD remains close, and Raiffeisen recently became the first foreignowned bank to conclude a syndicated loan to facilitate medium- and longterm financing to SMEs.

* Edin Muftic, CEO

www.raifFeisenbank.ba

BULGARIA

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DSK BANK

It was established out of a former state savings bank in 1998, but by last year DSK Bank was already second in size to Bulbank and was growing its retail operations rapidly. Last October DSK Bank was acquired outright by Hungarian market leader OTP Bank in a euro311 million deal. The new owner is investing heavily with the aim of quadrupling profits and making DSK Bank Bulgaria's largest bank by assets over the next four years.

Such confidence appears well placed, given DSK Bank's performance last year. Profits were up by some 20% on the back of an 18.4% growth in assets and a similar increase in deposits. The bank is looking to further boost profitability by extending its range of retail products and services.

* Krasimir Angarski, chairman and CEO

www.dskbank.bg

CROATIA

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PRIVREDNA BANKA ZAGREB

A strong track record of profitability and innovation have won Privredna Banka Zagreb the award again this year. Now part of the Italian Gruppo Banca Intesa, the bank's most recent profit statements show a 20%-plus hike on the back of 11% asset growth.

Privredna has reaped rewards from its PBZ American Express joint venture and is the leader not only in Croatia but in adjoining Balkan states. Almost all of Croatia's banks are now under foreign ownership and benefiting from resulting reinforcement of their capital bases and new technological input. It's in feeding that through to the bottom line that Privredna has won out.

* Bozo Prka, chairman

www.pbz.hr

CYPRUS

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BANK OF CYPRUS

It's been a tough year for Cypriot banks, with lower interest rates and a slowdown in the economy. New regulations on interest suspension have required significantly higher provisioning, which turned a 21% improvement in core profits at Bank of Cyprus into a pre-tax loss. The market-leading bank has now taken the hit on provisions and is confident that underlying improvements in performance will come through.

The bank's overseas operations helped support the bottom line, especially its 80-strong network in Greece, which contributed 42% of core profits last year. Given its strong capital base, the dynamic growth in its Greek operations and the broader benefits of EU accession, Bank of Cyprus is set to reap the rewards this year of market leadership combined with geographical diversification.

* Solon A. Triantafyllides, chairman

www.bankofcyprus.com

CZECH REPUBLIC

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CESKOSLOVENSKA OBCHODNI BANKA

Competition among the "big three" Czech banks, especially in the fastgrowing retail sector, has never been fiercer. But Ceskoslovenska Obchodni Banka (CSOB), part of Belgium's KBC banking group, has succeeded in growing its retail loan book four times faster than the market.

Loans to individuals and SMEs rose by 51% last year, and savings products such as mutual loans grew by 43%, while successful cross-selling and new advisory services aimed at helping clients diversify their investments in local markets saw fees and commissions rise twice as fast as interest income. Headline profits were slightly lower in 2003, though this reflects a far smaller release of bad debt provisions than was made during the previous year's dramatic recovery.

* Pavel Kavnek, chairman and CEO

www.csob.cz

DENMARK

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DANSKE BANK

The largest bank in Denmark and ranked 24th in Europe, with a market capitalization of euro13.4 billion, Danske Bank repeats its success of last year. Despite increased competition and a slight decline in profitability from traditional banking activities based on lower interest-rate margins, Scandinavia's second-largest banking group sustained earnings with a 17% increase in net profits for 2003 compared with the previous year, based on higher earnings from insurance investment portfolios. The bank continued its concerted effort to reduce operational expenses with a cost-to-income ratio of 55%.

* Peter Straarup, CEO

www.danskebank.com

ESTONIA

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HANSABANK

The clear market leader in Estonia and the cornerstone of the eponymous financial group spanning all three EU accession Baltic states, Hansabank wins again this year on the strength of another 15% rise in pre-tax profits, improved credit quality and an excellent cost-income ratio.

A lower interest rate environment has led to fast growth in mortgage loans-though combined with suffer competition this has also affected margins overall. Hansabank continues to build on its pioneering work in electronic banking, has over half of Estonia's fast-expanding pensions market and is better placed than most for Estonia's accession to the EU.

* Indrek Neivelt, chairman

www.hansa.ee

FINLAND

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OKO BAMK

Last year's winner Nordea Finland leads in terms of market share (46% of commercial banking and 35% in retail banking). However, the upgrading of OKO Bank's long-term bank deposits and financial strength to Aa2/B+ puts it slightly ahead of Nordea, reflecting the consistent financial performance and strength of the 242 cooperative banks that make up the OP Bank Group. The creditworthiness of the bank is reinforced by a joint liability guarantee between the member banks and enhanced risk management. Despite some exposure to the volatility of the capital markets via its life insurance company Aurum, the impact on core capital was limited, and it has since reduced its stake in the company. Corporate and retail customers of the bank benefit from a strong domestic franchise, wide product range and sophisticated Internet and mobile banking.

* Antti Tanskanen, CEO

www.okobank.com

FRANCE

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SOCIT GNRALE

Last year's winner, BNP Paribas, is at the peak of its ratings, which reflect its strong financial fundamentals and sustainability of earnings. On a relative basis, though, France's secondlargest bank, Socit Gnrale, demonstrated more substantial improvements, with operating profits for the first six months of this year increasing by 30.4% on the previous year, while at BNP Paribas operating profits demonstrated an increase of 17.5%. Earnings from its retail banking division posted an 8.2% increase on the previous year, compared to BNP Panbas' 3.6%.

SocGen is number four in the eurozone when it comes to asset management, but well-diversified revenue streams and its move away from more volatile corporate and investment banking has protected it from volatility in fixed-income earnings. It also benefits from wide geographical distribution encompassing markets in Asia, Central and Eastern Europe (where it is one of the largest players), Africa and the Middle East.

* Daniel Bouton, chairman and CEO

www.socgen.com

GERMANT

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BAYERISCHE HYPO-UND VEREINSBANK

Previous winner Deutsche Bank was one of the few German banks last year to demonstrate positive growth in net income, but despite efforts to reduce operational expenses, its cost base still constitutes 80% of its income (among the highest in Europe), and ROE is below 5%. In the first three months of this year HVB generated an operating profit of euro290 million, more than doubling its performance compared with the same time a year earlier, when it suffered a loss of euro9 million.

Having reduced problem loans and spun off more-volatile business streams such as its real estate operations, HVB raised euro3 billion in capital from the market, leading some to speculate that it is on the road to recovery. With a strong regional franchise in Bavaria and a significant presence in Austria and CEE via its BA-CA subsidiary, it benefits from more-diversified revenue streams. It is also a clear leader when it comes to cutting costs, with a cost/income ratio of 65.4%.

* Dieter Rampl, CEO

www.hvbgroup.com

GREECE

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EFG EUROBANK ERGASIAS

Last year's winner and Greece's third-largest bank, EFG Eurobank Ergasias continued to demonstrate dynamic growth and strong financial fundamentals in a difficult market, with net interest income from loans increasing 22% in 2003. Net commission revenue in the past year was also higher, reflecting its strong market share across a range of products including lending, SMEs and asset management. In the first quarter of this year, consolidated pre-provision income increased by 44% to euro173 million, and its annual recurring earning power increased to 2.5%. Its income is less susceptible to the volatility of the capital markets than some of its counterparts. Its cost-to-income ratio (55%) is among the lowest of the Greek banks.

* Nicholas C. Nanopoulos, chairman

vvww.eurobank.gr

HUNGARY

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OTP BANK

Another strong performance in 2003 ensures that market leader OTP Bank remains the bank of choice in Hungary. It has come a long way from its former incarnation as a state-owned savings bank, retaining its dominant market share while rapidly expanding its electronic and mobile banking capabilities and making strategic acquisitions elsewhere within the region.

OTP Bank posted a near-50% rise in pre-tax profits and boosted ROE by 30.5% last year. While the loan book grew at a prudent rate, non-interest income rose rapidly; it now accounts for 43% of the bank's income. In consumer banking, OTP Bank has gained some 60% of the credit card market and, through OTP Mortgage Bank, over 40% of housing loans.

* Sndor Csanyi, chairman and CEO

www.otpbank.hu

ICELAND

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KAUPTHING BUNADARBANKI

A spate of acquisitions and mergers has challenged the position of last year's winner Islandsbanki as the largest bank in Iceland. Following its merger with Bunadarbanki Islands more than a year ago, Kaupthing Bank is challenging for that position. Last December Moody's upgraded the bank's long-term deposit and debt ratings from A3 to A2 and its financial strength rating from C to C+.The efficiencies resulting from the merger also saw Kaupthing's cost/income ratio fall below 50% in the second quarter of this year. Kaupthing Bunadarbanki is also set to double its size in terms of assets following its acquisition of Danish corporate bank FIH from Sweden's Swedbank, which will help it become a leading investment bank in the Nordic region.

* Hreidar Mar Sigurdsson, CEO

www.kaupthing.net

IRELAND

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BANK OF IRELAND

In terms of financial strength and long-term debt and deposit ratings, there is not much between the two largest Irish banks, Bank of Ireland and last year's winner Allied Irish Banks. However, AIB was embroiled in an investigation into FX over-charging of retail customers, which it had to write off. So this year, Bank of Ireland takes the title, and although it does not enjoy AIB's geographical diversity, it reported strong profitability from its Irish and UK residential lending base. Its cost/income ratio at 54.27% is also lower than AIBs, which had to absorb restructuring costs associated with its Polish subsidiary. Although Bank of Ireland's potential merger talks in the UK have yet to bear fruit, its UK subsidiary Bristol & West continues to be a viable source of revenue.

* Brian Goggin, CEO

www.bankofireland.ie

ITALY

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UNICREDITO ITALIANO

Despite a difficult economic environment with scaled-back growth forecasts, Unicredito, last year's winner, remains the most profitable bank in Italy, with net income growth in 2003 of euro2 billion. Its cost-to-income ratio of 54.1% is also the lowest of the Italian banks, which tend to hover around the 70% mark. While stronger earnings growth for most of the Italian banks was spearheaded by the sale of interest rate derivatives to corporates, Unicredito, which was the first to sell derivatives to Italian corporates, is considered the most sophisticated provider and derivatives sales contributed heavily to earnings growth, which reached euro1.3 billion last year.

* Alessandro Profumo, CEO

www.unicredito.it

LATVIA

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UNIBAMKA

Unibanka, part of Sweden's SEB Group, has recently become the largest lender among Latvian commercial banks. It continues to win retail customers in this tech-savvy Baltic republic through continuing technological innovation, the most recent success being its issuance of smart cards.

With Latvia's economy showing GDP growth above 7% and interest rates falling, Unibanka has focused on retail and particularly mortgage lending, while the bank's capacity to service the fast-growing savings market has been greatly strengthened by its purchase of leading asset manager Optimus Fondi. Operating income increased by 13% last year on asset growth of 23%, and the more modest 5% rise in pre-tax profits shows that Unibanka is investing strongly in the future.

* Viesturs Neimanis, president

www.unibanka.lv

LITHUANIA

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VILANIAUS BANKAS

Another member of the Swedish SEB Group, Vilniaus Bankas comes out on top again this year not only as Lithuania's largest bank but because of its innovative approach and financial discipline.

After the 'annus mirabilis' of 2002, profits were up a more sedate 4.6% last year, though return on equity was maintained at 16.9% and earnings per share also rose. Discipline and ever-increasing automation yielded a 3.5% decrease in costs, while at the same time the bank's assets rose by more than 29%, and it gained market share in both loans and deposits.

The volume of mortgages and life insurance almost doubled, payment cards showed 25% growth, and both telephone and e-banking customers increased more than two times compared with the prior year. Vilniaus Bankas is also the most active brokerage house in Lithuania trading in stocks and securities, and its mix of businesses combined with professionalism will stand it in good stead following EU accession.

* Julius Niedvaras, president and CEO

www.vb.lt

LUXEMBOURG

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BANQUE GNRALE DU LUXEMBOURG

Standard & Poor's recently confirmed the AA- long-term and A-I+ shortterm counterparty credit ratings of the Banque Gnrale du Luxembourg group, which is a member of the Fortis Group, and last year's winner. It benefits from the financial strength and diversification of its parent group, which is increasingly important when the stock markets are under-performing. Despite difficult economic conditions, net profit increased by 39.5% to euro468.7 million last year, with wealth management portfolios continuing to perform positively. Further cost reductions were also achieved, with other administrative expenses falling by euro2.1 million.

* Jean Meyer, chairman of the management board

www.bgl.lu

MACEDONIA

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KOMERCIJALNA BANKA

One of the leading commercial banks in this land-locked Balkan republic, Komercijalna Banka's latest figures show a near-70% increase in net profits-a remarkable achievement amidst a static economy and worsening trade deficit. Moreover, local deposits have been seeping away into euro accounts.

Komercijalna Banka wisely drew in its horns on asset expansion and restructured its balance sheet, which has allowed the bank to lower its provisioning against bad or doubtful debts. Investment in technology continues to support its role as the country's leading universal bank, and as interest rates fall, it has focused on corporate loans and especially micro-credits. International payments remains a big earner, while the fast-growing credit and payment card business saw a 62% increase in volume.

* Trajko Davitkovski, chairman

www.kb.com.mk

MALTA

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HSBC MALTA

Ever since HSBC bought Malta's largest bank, the old Mid-Med, the re-branded HSBC Malta has gone from strength to strength. Last year pre-tax profits were up 23.8% despite adverse interest rate movements and the costs of gearing up for Malta's joining the EU. With more than half the local banking and mortgage markets, HSBC Malta has established itself as the clear leader in this island republic. It also has leadership positions in life assurance and asset management.The bank grew its loan book by a modest 3.6%, and total assets actually shrank slightly last year. But in terms of customer service and professionalism, HSBC Malta stands head and shoulders above its competitors.

* Chris hothersall, CEO

www.hsbcmalta.com

MOLDOVA

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MOBIASBANCA

It may not be the largest player in Moldova's still-fragmented banking industry, but Mobiasbanca wins the award for its consistent profitability. Indeed, the bank has nearly doubled net profits, with return on equity running above 20%, as well as turning in some enviable cost-to-income ratios.

Starting from a relatively low base, Mobiasbanca has been enlarging its overall market share by upgrading its retail banking, taking a leading role in developing the country's fast-growing credit card industry. A long-standing cooperation with the EBRD in providing trade finance for Moldovan exporters was reinforced again last year.

* Nicolae Dorin, president

www.mobiasbank.com

NETHERLANDS

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ABN AMRO BANK

With a market capitalization of euro29 billion and a return-on-equity of 31.3%, last year's winner ABN AMRO's financial fundamentals speak for themselves. A 26.2% rise in second-quarter net profit as a result of lower risk provisions due to fewer bankruptcies, enhanced cost controls and stronger performance in retail banking exceeded analysts' expectations. In a market characterized by high operational costs, ABN AMRO has perhaps been the most successful at reducing them, with a cost/income ratio of 67.9%. ABN AMRO's profitability has also benefited from its wide geographical distribution, generating 40% of its revenues from the US, and it has reduced its dependency on volatile investment revenues.

Rijkman Groenik, chairman

www.abnamro.com

NORWAY

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DEN NORSKE BANK

Last year's winner, Den norske Bank, continues to dominate the Norwegian market. For the fiscal year ended December 2003, net profits reached $29.36 million, with proforma earnings for the group 48% higher than the preceding year, constituting gains across all business lines including life assurance and pensions, which accounted for 15% of pre-tax profits. The group has also made considerable inroads in reducing operational expenses, with its cost/income ratio falling from 66% to 60%, with plans to further reduce it to 55%.

Svein Aaser, CEO

www.dnb.no

POLAND

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BANK HANDLOWY W WARSZAWIE

Poland has one of the most competitive banking markets of any of the EU accession states, and Citigroup-owned Bank Handlowy wWarszawie has had to fight hard to retain its title. Nonetheless, its successful integration within the broader group provides it with access to expertise and technologies, giving it a competitive edge, while consolidation means that it is now responsible for all Citigroup settlements in CEE.

The gradual improvement in the Polish economy, now nudging 4% GDP growth, did not come through in time for the bank's 2003 figures-though, following a restructuring of the balance sheet and reorganization of its branch network, Handlowy is much more optimistic about 2004. It is building on its already strong position in corporate lending with a sharper focus on the emerging SME market, while a 60% increase in Internet banking transactions helps consolidate its leadership in the increasingly competitive credit card market.

Slawamir Sikora, president

www.citibank.pl

PORTUGAL

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BANCO ESPIRITO SANTO

Although last year's winner, Banco Comercial Portugus, has demonstrated resilience during difficult economic times (which saw its ratings outlook upgraded to stable from negative by Standard & Poor's), Banco Espirito Santo takes the award for best bank this year. Proceeds from the sale of its consumer credit operations, Credibom, saw impressive growth in net income (61% in 2003), which minimized the impact of an 18.6% decline in net income in first-half 2004.

Net commission income was also stronger at BES (up 25.4%), reflecting its wide product breadth encompassing traditional banking, brokerage, corporate and project finance, bancassurance and investment. Despite a slight increase (6%) in costs, BES managed to keep a tighter lid on overall operational expenses, which further declined to 51.3% of income, while costs remained relatively higher at BCP at 69.2%.

Ricardo Salgado, president and CEO

www.bes.pt

ROMANIA

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RAiFFEiSEN ROMANIA

Raiffeisen may not be Romania's largest bank-it is ranked third by assets-but it wins the award this year for its remarkable turnaround in the two years since privatization. Investment in IT systems and personnel training have led to significantly improved financial figures in 2003, and this year the bank is planning to increase total assets by 60% and improve its performance ratios across the board.

Foreign ownership provides easier and cheaper funding for loans and upgrading the bank's range of products and services. More than euro40 million is currently being invested in IT, improving the branch network and building up ATM and EPOS coverage. Raiffeisen is confident its enhanced capability of delivering quality services through multiple distribution channels, including telebanking and e-banking, will further strengthen its market position.

Steven van Groningen, president and CEO

www.raifFeisen.ro

RUSSIA

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MDM BANK

A front-runner among Russia's privately owned banks, MDM wins for its leadership in aligning with IAS (International Accounting Standards), for providing corporate banking services to the fast emerging mid-size 'blue chips' in the region, and for its strong bond issuance-including its own $200 million three-year eurobond. On the retail side, it is revamping its network of micro-offices and targeting the emergent middle-class customer by offering new product lines, such as mortgages, and investing strongly in retail software. With its enhanced credit rating and profitability buoyed by stringent cost controls, MDM looks set to rule the roost in the Russian private sector.

Vladimir Rashevsky, CEO

www.mdmbank.com

SERBIA-MONTENEGRO

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RAfFFElSENBANK

In less than three years of operations, Raiffeisenbank has succeeded in taking a leading position among foreign-owned banks and is now the fourth-largest overall in Serbia. It wins the award for its consistent increase in market share, with a fourfold increase in lending to corporates last year, and for its leadership in introducing new banking products across the board, being the first to offer housing loans to private individuals. Expanding its range of offerings-this year will see the introduction of new VISA card products, e-banking for individuals and a range of new loan products-is combined with expanding the branch network across the country, with another nine branches scheduled to open during 2004.

Budimir Kostic, chairman

www.raiffeisenbank.co.yu

SLOVAKIA

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TATRA BANKA

Slovakia's lower interest rate environment is changing Raiffeisen subsidiary Tatra Banka's focus from its traditional dominance in the corporate sector toward a more retail-orientated approach.

A pioneer in offering Internet banking,Tatra Banka continues to expand and refine its offerings at a time when customer requirements in Slovakia are becoming more differentiated. It already has leadership in private banking, mortgages and payment cards, and at a time when most Slovak banks are closing branches, Tatra Banka has the confidence to expand its 104-strong branch network. It is also profiting from synergies with its parent group, offering cheaper and speedier euro payments through other RZB-owned banks, as part of its overall strategy of servicing customer needs in the most cost-efficient way.

Rainer Franz, chairman

www.tatrabanka.sk

SLOVENIA

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NOVA LJUBLJANSKA BANKA

Repeat-winner Nova Ljubljanska Banka holds more than a third of all banking assets in this prosperous EU accession state and is committed to remaining the country's leading universal bank despite growing competition from foreign banks.

Lending margins have been squeezed as interest rates dropped, but NLB responded by focusing on SMEs and especially in providing foreign currency export loans, which leapt by 143% last year. It is moving aggressively into the new savings market, and with profits comfortably up again in 2003, NLB will be difficult to dislodge from its pole position.

Marjan Karmar, president of management board

www.nlb.si

SPAIN

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BANCO SANTANDER CENTRAL HISPANO

Spain's largest bank by assets and Europe's sixth-largest by market cap (euro41.9 billion) may have higher levels of exposure to volatile Latin American markets than last year's winner Banco Popular Espanol. However, its recent bid for UK bank Abbey suggests a change of strategy for the bank that until April of this year had 23% of its assets in Latin America, which has been a volatile source of income. Subject to shareholder and regulatory approval, if the Abbey deal goes ahead, it will reduce the bank's Latin America exposure to 15%, which can only be good given that there is little credit appetite for further acquisitions in emerging markets.There are the obvious concerns around integration, but if the deal goes ahead, it will not only increase S CH's geographic distribution but create one of Europe's largest financial groups.

Emilio Botin, chairman

www.gruposantander.com

SWEDEN

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SVENSKA HANDELSBANKEN

With operations in Sweden, Denmark, Finland and Norway, Svenska Handelsbanken, last year's winner, remains the most resilient of the four main Swedish banks in terms of long-term deposits, debt ratings and financial strength (Aa1/Aa1/A-). Its trading operations demonstrated strong growth and profitability, particularly fixed income and foreign exchange. It is considered to have above-average efficiency, a strong track record in the region and a sound asset base. Operational expenses were also the lowest of the Swedish banks, with a cost/income ratio of 45%.

Lars O. Gronstedt, president and CEO

www.handelsbanken.se

SWITZERLAND

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UNION BANK OF SWITZERLAND

Last year's winner continues to impress even in a sluggish market environment. In the first quarter of this year, UBS announced record profits fueled by gains in fixed-income trading and wealth management. Total new assets from private investors were a record euro12.3 billion, reflecting the bank's expansion of this business line with acquisitions of UK and US private client managers. Even if market conditions decline, its financial strength and diversity should sustain financial performance.

Peter Wuffli, CEO

www.ubs.com

TURKEY

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AKBANK

Akbank wins again this year after improved performances across the board. Its strategy of targeting SMEs and consumer credit has paid off-both in terms of market share and in a jump of 57% in net fee and commission income-as has its aggressive move into mutual funds, where it is now second-largest provider among private investment banks. Already one of the best-capitalized banks in Turkey, Akbank strengthened its balance sheet while growing its assets at nearly four times the overall market rate. It improved its ROE to an impressive 30.3% and recorded a 24% increase in operating income-and looks set to improve further by focusing on higher margin segments and a more customer-responsive management structure.

Zafer Kurtul, president and CEO

www.akbank.com.tr

UKRAINE

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PRIVATBANK

Ukraine's leading bank wins the award again this year for its continuing expansion into new areas and for another set of excellent results, with profitability nearly doubling on just over 10% net asset growth. Early investment in key technologies such as payment systems is also paying dividends. With the Ukrainian economy on the rise once more, Privatbank is particularly well placed to benefit. It has an enviable core client list among the larger corporates. Meanwhile, the bank is building its retail business by extending its range of products and services, including real estate and vehicle credit schemes.

Alexander Doubilet, chairman

www.pbank.com.ua

UNITED KINGDOM

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HSBC HOLDINGS

As the top-ranked bank in Europe by market capitalization (euro135.7 billion), HSBC's strong financial fundamentals and diversified revenue streams make it this year's winner, putting it ahead of competitors such as Royal Bank of Scotland, which won the title last year. In the first half of this year, pre-tax profits increased 53%, to $9.37 billion, up from $6.11 billion the previous year. Earnings were boosted by income from HSBC's US consumer acquisition Household International, which is expected to drive future growth.

Although bad debt increased to $2.8 billion because of the Household acquisition, this figure was still well below analysts' estimates. Return-on-equity is a healthy 16.6%. HSBC has also taken steps to diversify its revenue streams away from corporate and investment banking, expanding its share of the consumer finance market by partnering with retail giant Marks & Spencer in the running of its retail financial services division. It has also expanded its interests in the Chinese market, announcing plans to purchase a 20% stake in Bank of Communications, China's fifth largest bank.

Stephen Green, CEO Sir John Bond, chairman

www.hsbc.com

MIDDLE EAST & AFRICA

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BAHRAIN

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NATIONAL BANK OF BAHRAIN

With a major market share in both commercial and retail banking, National Bank of Bahrain has a strong financial profile and operates the country's largest branch network. The bank has achieved steady growth in its core business and is one of the highest-rated banks in the Persian Gulf region. NBBs profits increased by 16.4% to a record $60 million in 2003. The bank's management has kept a tight hold on operating expenses.

Abdulla AIi Kanoo, chairman

www.nbbonline.com

EGYPT

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COMMERCIAL INTERNATIONAL BANK

CIB posted an 8.3% rise in profits to $67 million in 2003. A growing loan portfolio contributed to a 14% increase in net interest income. CIB has applied for a Level-I American depositary receipt program and is considering listing in other regional markets. Bank of New York recently received Egyptian central bank approval to raise its stake in CIB to 30% from 25%. The US agreed in March 2004 to provide partial guarantees for CIB loans to private sector companies doing business with Egypt's water and wastewater utilities. In February CIB was an underwriter for Orascom Construction's $65 million bond offering.

Hisham Ezz Al-Arab, chairman and managing director

www.cibeg.com

ISRAEL

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BANK HAPOALIM

Bank Hapoalim, Israel's largest bank, has more than 300 domestic branches and 40 overseas offices. As part of a campaign to increase its international activity, Bank Hapoalim is concentrating on private banking services. Signature Bank, its New York-based private banking unit, went public on Nasdaq in March 2004. Bank Hapoalim also operates a private bank in Switzerland and is seeking to expand its New York and Swiss asset-management holdings. Poalim Capital Markets, the bank's investment banking arm, leads many of Israel's largest public offerings. Bank Hapoalim's US and UK corporate banking units offer a wide range of products, including stripped convertible bonds and asset-backed securities.

Zvi Ziv, CEO

www.bankhapoalim.com

JORDAN

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ARAB BANK

Jordan-based Arab Bank is one of the largest banks in the Middle East and has nurtured a reputation as a safe haven for Arab deposits.The bank operates in 20 countries and has a leading share in the Palestinian market.

The bank's profitability has been constrained by its conservative balance-sheet management. Arab Bank posted a 45% decline in profits to $228 million for 2003, due in part to uncertainty created by the war in Iraq. Revenues rose by 7% to $794 million.

Abdul Hamid Shoman, CEO

www.arabbank.com

KENYA

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KENYA COMMERCiAL BANK

Kenya Commercial Bank operates more than half of all the banking offices in the country and maintains correspondent relationships with more than 400 banks worldwide.

The bank returned to profitability in 2003 following several years of losses. Net interest income increased by 16%, as KCB shed expensive deposits and increased cheaper savings-account deposits. Many of KCB's branches are in remote areas where it is the only available bank.

Terry Davidson, chief executive

www.kcb.co.ke

KUWAIT

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NATIONAL BANK OF KUWAIT

National Bank of Kuwait is more than twice as big as its nearest competitor, whether measured in terms of assets, capital or profits. The vast majority of foreign companies doing business in Kuwait rely on NBK to meet their banking needs. The bank's large capital base enables it to provide unsurpassed underwriting capabilities in debt as well as project financing. Letters of credit for international trade are normally issued within 30 minutes.

Ibrahim Dabdoub, CEO

www.nbk.com

LEBANON

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BLOM BANK

BLOM Bank's profits rose to $88.4 million in 2003, up from the previous year's $83.6 million. Assets grew by 23% to $8.8 billion. BLOM, along with the International Finance Corporation and Syrian investors, launched a public offering in October 2003 for 38% of the capital of BSOM, one of the first private banks in Syria. BLOM subscribed to 39% of BSOM's capital, while the IFC acquired 10%. BLOM continues to hold large amounts of foreign currency as a hedge against devaluation. Its liquidity ratio in foreign currency rose to 72.3% at the end of 2003 from 61% a year earlier. The bank's capital-adequacy ratio exceeds three times the international level.

Naaman Ashari, chairman and general manager

www.blom.com.lb

MOROCCO

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BANQUE COMMERCIALE DU MAROC

Casablanca-based BCM late last year acquired Wafabank, creating one of the largest banks in Morocco, with more than 1 million customers and 460 branches. With operations in Spain, France, Belgium and Italy and extensive correspondent banking relationships, BCM is a leader in financing foreign trade. It also offers many insurance and wealth-management products. BCMs major shareholders include Omnium Nord-Africain, or ONA, and Banco Santander Central Hispano. French insurer Axa reduced its holdings after BCM acquired Axa's rival in the country, Wafa Assurance.

Khalid Oudghiri, president

www.attijaribcm.com

NIGERIA

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FIRST BANK OF NIGERIA

First Bank of Nigeria is the country's largest and most-profitable bank. Its network of 350 branches is supplemented by vans that bring "banking on wheels" to remote villages. The second-most-capitalized stock on the Nigerian Stock Exchange, the bank has followed a strategy of modernization and cutting costs to boost efficiency. With a subsidiary in London and a newly opened representative office in Johannesburg, FBN has begun to expand into the international market.

Jacobs M. Ajekigbe, managing director and chief executive

www.firstbanknigeria.com

OMAN

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BANKMUSCAT

BankMuscat, Oman's leading bank, now accounts for 34% of the sultanate's banking assets, 38% of total credit and 34% of deposits. The bank's profits increased 18.2% in 2003 to $70 million. Net interest income rose 10% to $179 million, and other income increased by 16% to $51 million. BankMuscat played a key role last year in the divestment of a 12.5% government stake in Oman Cement. It also was a lead arranger in the $130 million loan financing of Oasis LNG Carrier. The bank is now focusing on expanding its presence across the region and in India. In February 2004 it acquired a 35% stake in Centurion Bank, a new private-sector bank in India.

Abdul MaHk bin Abdullah Al-Khalili, chairman

www.bankmuscat.com

QATAR

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QATAR NATIONAL BANK

Qatar National Bank supports many of the country's major projects, such as Qatar Airway's purchase last year of five Airbus A320s. The bank also was mandated lead arranger to Qatar Vinyls $460 million refinancing project. QNB's profits for 2003 rose 10.5% to $176 million.This was after an exceptional one-off provision to the new state pension fund. Net profits before this provision showed an increase of 14.6% over 2002.

The 50%-government-owned bank controls about half of the assets of the country's banking system.

Saeed Al-Misnad, CEO

www.qatarbank.com

SAUDI ARABIA

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ARAB NATIONAL BANK

The Saudi economy is back in the fast lane, with commercial activity showing an increase of about 30% last year. Arab National Bank is sharing in the wealth, with a 31% rise in net income in 2003. The bank's return on equity rose to 19.3% from 16.5% in 2002. Revenue growth was impressive across all areas of the bank's business in 2003, and ANB took advantage of the increased cash flow to modernize its facilities and implement new technology. ANB continued to build up its loan-loss provisions during the year. General provisions now represent almost 2% of the bank's performing loan portfolio.

Nemeh Sabbagh, CEO

www.anb.com.sa

SOUTH AFRICA

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STANDARD BANK

A strengthening South African economy helped Standard Bank extend its long-term growth trend in 2003, with a 19% increase in head-line earnings that matched the percentage gain for 2002. The bank achieved a return on equity of 23% last year, with the domestic business reporting a 30% ROE. In March 2004 Standard Bank acted as the lead arranger of the commercial bank facilities for Sasol's $1.2 billion natural gas project, which is a joint venture between Sasol and the South African and Mozambican governments.

Jacko Maree, CEO

www.standardbank.co.za

TUNISIA

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BANQUE DE TUNISIE

The Tunisian economy is finally rebounding from a severe drought and recession, but its banks are still struggling with non-performing loans and rising risk provisions. The agriculture sector improved in 2003, and industry began to show signs ofsustainable growth in early 2004.

Thanks to its prudent lending policies, Banque de Tunisie has fared better than other leading banks, particularly those with large government ownership. The bank's profits inched up 0.6% in 2003 to $24.8 million.

Banque de Tunisie has about 80 local branches, which are connected by an intranet supplied by Chicago-based Lansa.

Faouzi Belkahia, president

UAE

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NATIONAL BANK OF DUBAI

National Bank of Dubai's profits increased sharply in 2003, its 40th anniversary year, but much of the gain was from one-off sales from its securities portfolio. Earnings per share rose 41.6%, while profits from its core banking and credit-card services increased by 13.7%.

Some 90% of NBD's revenues come from its corporate banking business, although it is making an effort to increase its retail banking operations. The bank has 37 domestic offices, as well as a branch in London and a representative office in Tehran.

Khalifa Mohammed Ahmed Sulaiman, chairman

www.nbd.com

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ARGENTINA

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BANCO MACRQ-BANSuDf

Banco Macro-Bansud may have found the formula to working within a difficult business environment. While Argentine banks have been reeling from a financial crisis that triggered more than $18 billion in banking sector losses in 2002, Banco Macro-Bansud is one of the few remaining profitable institutions. As competitors struggled for survival, its deposits were up 24.3% and personal loans up 24% in the first half of 2003. The rest of the year was already looking promising, too.

Macro-Bansud's formula for success may lie in its commitment to implementing long-term strategy, an ability to retain strong shareholder support and its adherence to high standards of corporate governance. Another component of its winning strategy has been to focus its activities on provincial cities with large underbanked populations and less competition than in Buenos Aires.

* Jorge Horacio Brito, president

www.bansud.com.ar

BARBADOS

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FIRST CARIBBEAN INTERNATIONAL

It often pays to have good parents, and FirstCaribbean, launched in 2002, is a prime example. The bank combines the Caribbean operations of Barclays Bank and CIBC, each of which holds a 43.75% share.

As a pan-Caribbean bank, First-Caribbean operates in 15 Caribbean countries and territories and, with a market capitalization of some $2 billion, is the largest publicly traded financial institution in the region. Its shares are actively traded on the Barbados, Trinidad and Tobago, and Jamaica stock exchanges.

Barclays and CIBC first began talks in 2001 to combine their retail, corporate and offshore banking operations throughout, the Caribbean islands, resulting in the establishment of FirstCaribbean as a full-service bank. Its pan-regional presence has been particularly helpful for investors, who can now conduct transactions on several islands through a one-stop shop. With its head office in Barbados, the bank continues to gain market share, capitalizing on its parent companies' expertise and market recognition.

* Charles Pink, CEO

www.firstcaribbeanbank.com

BOLIVIA

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BANCO BISA

Banco Bisa continues to be a banking sector innovator, having been the first bank to introduce ATMs and telephone banking in Bolivia. More recently, Banco Bisa introduced new cash management services for local companies as part of the bank's plan to provide Bolivian companies with a broader range of modern corporate solutions. Its efforts have gained it widespread recognition as the country's most trusted brand in the corporate banking sector. Founded in 1963 as a second-tier bank, Banco Bisa went into the commercial banking arena in 1988. Today it offers a wide range of services that include deposit accounts, insurance products, leasing, credit cards and securities brokerage, among others. The bank offers a menu of short- and long-term financing options, including project and trade finance services. For more than a decade it has helped form a new generation of innovators by providing college scholarships to the nation's most outstanding students.

* Julio Leon Prado, president

www. grupobisa. com

BRAZIL

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BANCO ITA

Banco Itau has remained a stellar performer among Brazilian and Latin American financial institutions. In fact, Banco Itau has posted nearly $1 billion in annual pre-tax profits for five years in a row, making it one of Latin America's most profitable banks. While many of its local competitors were grappling with the country's sharp currency devaluation, Itau not only stayed afloat but went on to report net income of $1.09 billion in 2003. Even in the depths of the country's economic crisis in 2002, it acquired Banco BBA, Brazil's largest corporate bank, for $930 million in a bold move that many at the time felt may have been too risky. But the risk paid off nicely, as the acquisition increased Ita's market share in the wholesale banking sector, adding to its already strong retail banking share. It also acquired Banco fiat for $310.5 million that same year. The purchases were the latest in more than $4 billion in acquisitions since 1995.

* Roberto Elyria Setubal, president and CEO

www.itau.com.br

ICHILE

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DE CHILE I

Chile's second-largest bank, Banco de Chile is a star performer among the country's financial institutions. The bank posted net income of $220 million last year, for a hefty 146% increase over 2002. Profits from the bank's subsidiaries, particularly its stock brokerage and factoring units, drove the performance, but a 6.6% rise in assets and a 10.4% drop in total operating expenses also contributed to the windfall. ROE was 19.45% at end-2003, compared with 8.9% in 2002. Its efficiency ratio also improved to 52.9%, compared to 2002's 59.7%. Controlled by the local Luksic family, Banco de Chile overtook Banco Santander Chile as the nation's largest commercial lender in 2003, when it scored a 19.5% share of the country's loan market; the Spanish banking giant's share was 18.8%. Banco de Chiles commercial loan book totaled some $4.3 billion last year, and the bank is expecting commercial loans to drive growth in 2004. Local analysts are betting its winning streak is not over yet.

* Segismundo Schurin-Zeutheii Serrano, chairman

www.bancochile.cl

COLOMBIA

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BANCOLOMBIA

Created in 1998 through the merger of BIC and Banco de Colombia, Bancolombia is benefiting from improved credit quality and a Colombian economic rebound to remain the nation's largest bank in terms of both assets and deposits. Bancolombia is not only big; it's also profitable. Net profit was up 123% last year to $174 million, compared with 2002, with profits coming from a diversified mix of investments, fees and interest income. Annualized ROE was 31.1% in 2003, up from 20.4% in 2002, and ROA rose to 3.4% from 1.88% in 2002.The bank improved its efficiency ratio to 54.3% in 2003 from 65.7% in 2002, as efficiency-boosting initiatives began paying off. Non-performing loans were a low 1.99% in January 2004. Bancolombia, the only Colombian bank listed on the NYSE, continued to set its sights beyond its borders when it opened an agency in Miami last year, adding to its subsidiaries in Panama and the Cayman Islands.

* Jorge Londono Saldarriaga, president

www.bancolombia.com.co

COSTARICA

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BANCO INTERFIN

Interim is the most profitable private bank in Costa Rica, where stateowned banks dominate the market. The bank's assets rose from $485.3 million in 2002 to $592.3 million in 2003, when it posted profits of $5.1 million. Profits have been climbing steadily. Interim is a member of Enlace Bancario, an alliance of top Central American banks that pool their resources. Founded in 1979 as a finance company servicing industrial and commercial clients, Interim became a multiple service bank in 1982. Since then it has focused mainly on gaining market share among large and medium-size local companies, for which designing corporate solutions remains a key priority. Its product offerings include personal and investment banking, leasing, loans, cash management and tax collection services, among others.

* Luis Liberman, general manager

www.interfin.fi.cr

ECUADOR

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BANCO DEL PICHINCHA

Banco del Pichincha was the top earnings producer among Ecuadorian banks last year, posting $18.9 million in net income in a country where the entire banking system, consisting of 22 commercial banks that are currently in a consolidation mode, reported net profits of $92 million. Pichincha not only took the lion's share of sector profits, but its performance far outpaced that of its closest competitor, Produbanco, which was the second-largest earner at only $12.8 million in profits.

Although big does not always mean profitable, Pichincha also happens to be Ecuador's largest bank, in terms of both assets and loans, with 26.3% and 26% of sector totals respectively. The bank, founded in 1906, is one of the nation's oldest financial institutions and is part of a much larger financial group that includes a portfolio of 20 other well-known companies, including banking subsidiaries in Peru and Colombia, an offshore bank in Nassau and an agency in Miami.

* Fidel Egas Grijalva, president

www.pichincha. com

EL ALVADOR

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BANCO CUSCATLAN

Fast becoming Central America's leading commercial bank, Banco Cuscatlan not only operates in its home base of El Salvador, but also maintains subsidiaries in neighboring Guatemala, Costa Rica and Panama. While it awaits approval to extend its reach into Honduras and Nicaragua, the bank has already established strategic alliances -with leading financial institutions in both markets to lay the groundwork for its full-fledged arrival. Banco Cuscatlan has based its business model on a regional approach that includes the establishment of a regional management group. The move allows it to take advantage of economies of scale, while providing enough flexibility to meet individual market demands. It also operates a securities trading unit in Miami and a network of money remittance centers in the US to service Salvadoran immigrants. In 2003 the bank compensated for lower net interest income through increased trading gains, fees and commissions. Total assets were $3.55 billion in 2003, up from $3.08 billion in 2002.

* Mauricio Samayoa, president

www.bancocuscatlan.com

GUATEMALA

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BANCO AGROMERCANTIL

Despite its ranking as the country's fifth-largest bank, with a 6.6% share of assets and 7.48% of the loan market last year, Banco Agromercantil's profits soared by 200% compared with 2002, to $10.41 million. As was the case for most Guatemalan banks, most of the increase for Agromercantil came from higher fees and commissions, as deposits and loans declined throughout the nation's banking sector.

Founded in 2000 through the merger of Banco Agro and Banco Mercantil, the bank was initially created to service Guatemala's agricultural sector. Agromercantil operates 37 branches in Guatemala City as well as 40 others in cities throughout the interior. It also has two agencies in California and one in Chicago. The bank entered into an alliance with El Salvador's Banco de Comercio to offer money remittance services from the US to Guatemala.

* Jose LuisValdes O'Connell, president

www.bam.com.gt

HONDURAS

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BANCO ATLANTIDA

Banco Atlantida is Honduras' largest bank in terms of assets, which rose to $720.5 million in 2003 (16.3% of the total for the 16 banks in the Honduran banking sector) from $704.1 million in 2002. It also held a 16.6% share of the country's loan market last year, when the bank posted net profit of $7.9 million. Atlantida is a fairly big fish in a relatively small pond:The top five banks in Honduras control nearly 67% of the nation's commercial banking assets.

Founded in 1913, Banco Atlantida is part of a larger Honduran conglomerate. Much of the bank's success has been driven by its ability to attract new depositors by offering low fees and low minimum deposits to open accounts. The initial deposit on savings accounts, for example, is only 500 !empiras, equal to some $28. Higher-income depositors seeking to open an account in hard currency may do so with either $500 or euro500.

* Guillermo Bueso, president

www.bancatlan.hn

MEXICO

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BANAMEX

Banamex is poised to become a model for how to manage a Latin American bank. Citigroup, which acquired Banamex for $12.5 billion in the largest-ever US-Mexico corporate merger, will now use the Mexican bank as a business model for its other Latin American operations. In fact, Banamex was Citigroup's top profit driver in the region, accounting for 8% of Citigroup profits as a whole.

Banamex reported $1.45 billion in net income in 2003, up from $1.21 billion in 2002, with nearly 50% coming from consumer lending. Banainex accounted for 29% of the Mexican banking sector's $10.05 billion consumer credit portfolio last year, for which it remains the country's largest private lender. It is also a leading player in the booming USMexico money remittance market. The bank, which has a 120-year history, operates a network of some 1,500 branches, which is why it seems there is always a Banamex office down the street anywhere one goes in Mexico.

* Manuel Medina-Mora, chairman and CEO

www.banamex.com

PANAMA

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BANCO GENERAL

Panama's second-largest private bank, Banco General is looking inward to expand its domestic operations in a bid to take market share away from its closest competitor, Banco del Istmo. The strategy is bearing fruit, as Banco General has already become the country's leading consumer and corporate lender.Total loans rose to $1.43 billion in 2003, compared with $1.38 billion in 2002. It continues to post better results than its competitors and can boast of having the country's lowest non-performing loan ratio, at just over 2%. Established in 1955, Banco General grew through the acquisition in 1999 of Bancomer, a Panamanian bank focused on the country's growing mortgage sector, in a strategic move that allowed it to expand into other lending activities. Its conservative yet profitable lending practices led to sustained profitability in 2003, with retained earnings continuing to boost capital. Total assets rose to $2.5 billion last year, compared with $2.4 billion the year before.

* Raul Aleman, general manager

www.banco-general.com

PERU

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BBVA BANCO CONTiMENIAL

In 2003 BBVA Banco Continental pursued an aggressive plan to increase its efficiency ratio, reaching 41% in mid-2003, compared with 60% for the Peruvian banking system. Although BBVA Banco Continental-owned by Spain's BBVA and the local Brescia Group-is still ranked as Peru's second-largest bank, behind Banco de Credite, it is nevertheless the country's most profitable financial institution.

The bank posted a 58% rise in net profit, to $50 million last year, mainly on account of efficient cost-cutting measures that had been launched earlier and continued in 2003. Another factor in its success was its ability to slash non-performing loans to 3.7% in mid-2003 in a strategy that will prove particularly beneficial for long-term profitability now that the bank's fastest-growing business segments include mortgage and retail lending. In a strategy to maintain its retail customer base, the bank has launched customer loyalty plans that range from frequent contests to reward points.

* Pedro Brescia CafFerata, president

WWAV. bbvabancocontinental. corn

PUERTO RICO

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BANCO POPULAR DE PUERTO RICO

Banco Popular continues to be Puerto Rico's largest bank, with more than $36.4 billion in total assets in 2003, up from $33.7 billion in 2002, and nearly 200 branches. Net income has risen steadily to $470.9 million last year, from $351.9 million in 2002 and $304.5 million in 2001. Popular Inc., the bank's holding company, with more than $35.8 billion in assets, also operates local securities, insurance and mortgage subsidiaries that allow the bank to offer its clients a broader portfolio of financial products.

Popular's reach extends far beyond the island. Its GM Group unit is Latin America's largest information systems integrated solutions and processing services provider. The bank operates eight branches in the US and British Virgin Islands, as well as a broad network of ATM and POS terminals in the Dominican Republic and Costa Rica. Its mainland US operations include Banco Popular N.A., the largest Hispanic bank in the US, with 32 branches in five states.

* Richard Carrion, chairman, president and CEO

www.bancopopular.com

TRINIDAD AND TOBAGO

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REPUBLIC BANK

When Republic Bank was founded as Colonial Bank in 1837, its founders had little clue that the bank would one day go on to become a financial powerhouse throughout the Caribbean. Republic continues to grow through acquisitions that most recently led to last year's purchase of the Dominican Republic's Banco Mercantil in a deal that boosted the Trinidadian bank's assets by 34%, to $25.8 billion. The acquisition spree is far from over. Last year it also acquired the Barbados National Bank. It had already taken majority stakes in Trinidad's Bank of Commerce and Guyana's Bank of Industry and Commerce in 1997.

So far, the strategy has paid off, and last year's profits allowed the bank to install a new core computer system that should help further integrate its regional operations. Republic is not disregarding its loyal clients at home. It still operates the country's largest branch and ATM network.

* Ronald Harford, chairman

www.republictt.com

URUGUAY

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ABN AMRO URUGUAY

ABN AMRO Uruguay appears unsinkable. When Uruguay's banking sector was nearly crippled in 2002 by a financial crisis in neighboring Argentina, which wiped out almost 40% of Uruguayan bank deposits, the bank's assets fell 32.2% but its profits were up 55%. In fact, ABN AMRO was the country's only profitable bank amid the crisis, with ROE rising to 37.4% in 2002 from 28% in 2001.

The largest foreign bank in Uruguay, ABN AMRO's performance remained strong last year, when it also boosted its share of the local credit card market to 31%. Having access to ABN AMRO s international know-how means the bank can adapt quickly to changes in market conditions. Its portfolio of offerings includes payroll services and foreign trade operations, with both segments poised for growth amid the country's economic recovery. The bank operates a network of 23 branches throughout Uruguay and offers both basic and business online banking alternatives.

* Eric Simon, country representative

WAVAV. abnamro. com. uy

VENEZUELA

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BANCO MERCANTIL

Despite a turbulent business environment, Banco Mercantil continues to do the right things to retain its leadership position as Venezuela's largest private bank, with a 16.3% share of sector deposits, 15.2% of total assets and 14.6% of loans last year-not a small feat in a country plagued by political upheaval. Although its ratio of non-performing loans is high, at 5.6%, it is lower than the 7% ratio for the country's banking sector as a whole.

Much of Banco Mercantil's continued success is driven by smart management decisions, including a strategy to invest excess liquidity in safe but high-yielding government securities.

Mercantil Servicios Financieros, the bank's locally owned holding company, also controls Commercebank, a US bank with offices in Florida,Texas and New York. In addition to operating an extensive network of branches and ATMs throughout Venezuela, the bank maintains representative offices throughout Latin America, as well as in London and Zurich.

* Gustavo A. Marturet, president

www.bancomercantil.com

ASIA PACIFIC

IMAGE PHOTOGRAPH 85

ARMENIA

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HSBC BANK ARMENIA

Armenia's banking sector has largely consolidated, but it is still relatively trouble-plagued. Even after so many problem banks have closed, HSBC's ability to provide banking services and products has helped it carve out a third of the local banking market.

The bank is a joint venture, 70% owned by the international banking group with the balance held by local investors. HSBC Bank Armenia's profitability has doubled in recent years, and it has maintained a firm control over costs, resulting in a return on equity exceeding 20%. Its effective treasury functions have also given it leadership in foreign exchange and dealing in government securities. Its leadership position is not assured, however, as some of the competition is catching up.

* Nick Gilmour, CEO

www.hsbc.com

AUSTRALIA

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ST. GEORGE BANK

The fifth largest bank in Australia, St. George may not boast the size of National Australia Bank or the formerly government-owned Commonwealth Bank, but it certainly was the standout performer in the market over the past 12 months.

At fiscal year-end in September 2003, St. George saw the biggest improvements across the board, and it has maintained this momentum in the first half of 2004. The bank recorded a 19% jump in profits to A$354 million (US$249 million) for the half year ended March 31, 2004, with net interest income up by 12%, to A$794 million. This reflects strong growth in lending and deposit volumes as well as stable margins.

St. George, under the strong leadership of CEO Gail Kelly, has made significant inroads in terms of market share over the past 18 months. Total lending receivables (on and off balance sheet) jumped 19% to A$64.4 billion in the first half of the financial year, with commercial lending up by 22% and residential loans rising 19%, to A$45,9 billion. Bad debts at St. George are comparatively low, at 0.10% of net receivables.

* GaU KeUy, CEO

www.stgeorge.com.au

AZERBAIJAN

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INTERNATIONAL BANK OF AZERBAIJAN

The International Bank of Azerbaijan has long been considered the top bank in Azerbaijan-and not just for being market leader, with more than 50% of the country's total banking assets. The bank has sustained its profitability and strengthened its balance sheet with the assistance of a syndicated commercial loan from an Austrian consortium headed by Raiffeisenbank.

Recent developments include branching into the growing insurance and reinsurance market by creating an insurance company-UC-and expanding its Azericard credit card services and ATM network. Internet banking was introduced for the first time last year, and privatization of the government's 50.2% stake is likely.

* Jahangir Hajiyev, chairman

www.ibar.az

BANGLADESH

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ISLAMI BANK BANGLADIS

While Bangladesh's state banks continue to struggle with the challenge of ongoing reforms, a number of its private commercial banks are doing rather well. Of these, Islami Bank stands out, boasting a further 38% increase in profits last year, to 2.2 billion takas ($37 million). A private commercial bank based on the Islamic Shariah, the bank has managed to increase its business while ensuring a higher spread between lending and deposit rates. Last year it reported an increase in total assets to 134.7 billion takas, from 80.9 billion takas in 2002. Deposits increased to 70.5 billion takas, from 56.2 billion takas the preceding year.The bank also enjoyed a rise in export-import business.

* Abdur Raquib, executive president

www.islamibankbd.com

CHiNA

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BANK OF CHINA

China's banks are problematic: Despite significant reforms, they sustain a high ratio of non-performing loans and low capital adequacy. Nevertheless, Bank of China stands out for its reforms. In 2002 BOC became the first Chinese bank to list its shares on an international stock market, in Hong Kong, ensuring greater transparency.

In 2003 the BOC reported modest gains: a pre-tax profit of 2.45 billion yuan ($296 million).This was in sharp contrast to its operating profit of over 57 billion yuan, as the bank channeled significant funds into its loan loss provisioning. The bank's provisions coverage was up to 74.55%, improving its financial condition considerably. Non-performing loans, meanwhile, continued to fall-down by 6.45% from 2002 to 15.92%.

BOCs return on assets sat at 1.27% in 2003, up from 0.32% the preceding year. Corporate deposits jumped 28% and savings deposits 22.6%.

* Xiao Gang, chairman and president

www.bank-of-china.com

GEORGIA

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TBC BANK

TBC Bank wins the award not just because it is Georgia's largest bank by assets but also because it has shown innovation in adopting technology. The result has been a dramatic increase in its deposit base and in the volume of real estate loans made to its customers.

After more than doubling its profitability in 2002,TBC Bank has put in another sparkling performance last year, with asset growth of 40%, a strengthened balance sheet and net profits up another 30%. Little wonder, then, that a 25% stake in TBC Bank has been taken by Soros Investment Capital, the investment group linked to the fabled financier George Soros.

* Mamuka Khararadze, chairman

WAVAV. tbcbank. com. ge

HONGKONG

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HSBC

While HSBC has proved itself around the world, posting strong results for the group globally, Hong Kong remains its home market. HSBC dominates all areas-from consumer banking to cash management to forex-and continues to bolster its presence in the territory. The past 12 months has seen the bank further increase its market share as it has raised the number of new accounts over the past 12 months and increased the number of credit cards it has issued.

The bank enjoyed a thoroughly improved climate in Hong Kong over the past 12 months, free from the threat of SARS a year earlier. The group's interim results for the first half of 2004 saw Hong Kong grab 25% of revenue, recording US$2,580 million in profits before tax. Fees and commissions rose by 40% to US$904 million, representing an annual compound growth of 16% since the first half of 1999. Sales of unit trusts and capital-protected investment products reached record levels. Retail brokerage sales were also strong.

* Stephen Green, CEO .

www.hsbc.com.hk

INDIA

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ICfCI BANK

ICICI Bank has emerged as India's largest privately owned bank, following the merger in 2002 of ICICI Ltd and its commercial arm, ICICI Bank. As of December last year, it boasted 1.1 trillion rupees ($25.2 billion) in assets and a network of around 450 branches and offices and 1,750 ATMs. It leads the retail sector with 5.75 million customers. It also offers a wide range of financial services to corporate clients, making strong use of its online presence in foreign exchange trading, cash management and trade services.

In the period April to December 2003, it reported a 36% rise in aftertax profits, to 11.8 billion rupees. Net interest income and fee income both increased by 41% year on year while retail assets rose a significant 85%, from 152.9 billion rupees in 2002 to 282.7 billion rupees in 2003.

* K.V Kamath, managing director and CEO

www.icicibank.com

INDONESIA

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BANK MISP

Bank NISP has shown itself well able to weather the challenges of the Indonesian economic climate. Last year it reported an 84% increase in net income to 170.7 billion rupiahs ($19.9 million) from 93 billion rupiahs in 2002.

The bank ensures it diversifies its loan disbursement among a range of business sectors, currencies, tenors and interest. The success of its strategy is reflected in its loans-to-deposits ratio, which sits at 77.53%, one of the highest in the country.

The bank's total assets reached 15.4 trillion rupiahs at the end of 2003. Meanwhile, the bank brought its NPL ratio down to 0.84% (from 1.67%), one of the lowest ratios in the country. Last year Bank NISP's return on equity rose considerably, to 18.81% from 13.42% the previous year. Return on assets increased from 1.52% to 1.68%.

The bank opened 34 new offices in 2003, bringing its total to 134.

* Karmaka Surjaudaja, chairman

www.banknisp. corn

UAPAN

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BANK OF TOKYO MITSUBISHI

Bank of Tokyo Mitsubishi continues to lead Japan's behemoth banks-even as its parent company, Mitsubishi Tokyo Financial Group, involves itself in a bitter tussle to buy the ailing UFJ Holdings, another of Japan's biggest four banks. While analysts have viewed the potential merger with considerable circumspection-given the overwhelming nature of UFJ's bad loan portfolio-that is all on hold now with rival Sumitomo Mitsui Financial Group making a hostile bid in August.

In any case, MTFG continues as the strongest banking group in Japan, with BTM performing strongly over the past 12 months. The group posted another set of robust results at the end of the financial year in March, with net income at 918 billion (US$8.39 billion). This represents a 352% increase from the previous year-reflecting the group's rise in non-interest income and a decrease in non-interest expenses.

The group has also lowered its non-performing loans still further. Down to an impressive 4% last year, the group's bad loans fell to 2.68% in June this year. It largely reflects the improved economic environment in Japan, with the group upgrading its borrower categories for client companies.

* Shigemitsu Miki, chairman Nobuo Kuroyanagi, president

www.btm. co.jp

KAZAKHSTAN

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KAZKOMMERTSBANK

Repeat winner Kazkommertsbank continues to expand rapidly and reward its shareholders-which since last year include the European Bank for Reconstruction and Development (EBRD) with a 15% stakewith enhanced profitability and a succession of upgrades from the leading credit ratings agencies. Last year saw another 10%-plus rise in net profits.

The largest bank in Kazakhstan by both capital and assets, Kazkommertsbank has a traditionally strong franchise among the country's larger corporates. More recently it has been focusing on the fast-emerging SME segment of the market. It is also expanding its range of retail services, including the relatively under-developed mortgage sector.

* Nina Zhussopova, chair of management board

www.kazkommertsbank.com

KYRGYZSTAN

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ASIAUNIVERSALBANK

The largest bank in this Central Asian republic's nascent financial services sector, AsiaUniversalBank (AUB) comes out on top because by making intelligent use of modern technology, including Internet banking and smart cards, it has leapfrogged the country's infrastructure gap and thereby won a growing band of large international and domestic clients.

The bank's primary focus remains international trade finance for mainly corporate clients, in support of which it has developed a strong correspondent network. But it has also gained a dominant position in debit cards and other money-transfer platforms that can be used without holding an account. These are a raging success, and AUB's asset base has more than quadrupled over the past two years.

* Nurdin Akerovich Abdrazakov, CEO

www.aub.kg

MACAU

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SENG HENG BANK

Seng Heng Bank excels in its market, boasting a strong balance sheet and a broad range of services. Last year it recorded 26% growth in its unaudited net profits to 160 million patacas ($20 million) from 127 million patacas in 2002. This is its fourth consecutive year of growth as it weathered Macau's economic downturn.

Seng Heng Bank also enjoyed growth in its assets, up almost 3% to 17.4 billion patacas from 14.7 billion patacas. The bank continues to improve its market share while it pursues its strategy of promoting Macau as an offshore financial center.

* Ho Hung Sun Stanley, chairman and managing director

www.senghengbank.com

MALAYSIA

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PUBLIC BANK

Public Bank continues to benefit from its focus on small and medium-size enterprises. It posted a before-tax profit of 1.4 billion ringgits ($368 million) in 2003-a 69% year-on-year increase. Meanwhile the group's return on equity (ROE) was 14%, up from 12.3% in 2002.

The bank saw strong growth in its assets last year, with the group's total loans and advances up by 8 billion ringgits, to 47 billion ringgits, while Islamic financing activity surged by 59%. Its NPL ratio fell to 1.9%, down from 2.4% the preceding year, while its parent company, the Public Bank Group, saw its NPL ratio fall to 2%. Its market capitalization grew by 70% in 2003 to 18.7 billion ringgits.

* Teh Hong Piow, chairman

www.publicbank.com.my

MONGOLIA

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THE AGRICULTURAL BANK OF MONGOLIA

The Agricultural Bank of Mongolia (Ag Bank) is the main provider of financial services in rural Mongolia. The bank is a model of reform, having narrowly escaped liquidation in 1999. Since then, it has become the second-most-profitable bank in the country and in March last year was privatized through international tender to H.S. Investments of Japan.

The bank acquired its 500,000th borrower in 2003, having begun its lending program in November 2000. The program focuses on small and medium-size enterprises, consumers, herders and pensioners. The average loan size is below $1,000, but repayment rates are impressive, sitting at above 99%.

* J. Peter Morrow, CEO

www.agbank.mn

PAKISTAN

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HABIB BANK

Habib Bank is Pakistan's second-largest commercial bank. It runs more than 1,400 branches in Pakistan, commanding a 20% market share. Overseas it boasts 48 branches with three subsidiaries. It also has two joint ventures, with Habib Nigeria Bank and Himalayan Bank, and a majority stake in Habib Allied International Bank based in the UK.

In what represents Pakistan's largest strategic sale to date, the government sold a controlling 51% stake in the bank to the Geneva-based Aga Khan Fund for Economic Development. In preparation for the privatization, Habib underwent extensive restructuring. Last year's figures showed strong performance, with pre-tax profits of $95.4 million, up from $71.3 million the year before.

* Zakir Mahmood, president and CEO

www.habibbankltd.coM/index.cfm

PHILIPPINES

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BANK OF THE PHILIPPINE ISLANDS

The Philippines' second-largest lender, the Bank of the Philippine Islands, is also the oldest bank in South East Asia. Last year it posted net earnings of 5.7 billion pesos ($101.5 million), up 10% year on year. This resulted in an increase in its ROE, up from 10.2% to 11.1% in 2003.

The bank reported a robust performance in its insurance operations-profits doubled in the third quarter of 2003-as well as recording significant improvements in its asset management and credit card businesses. NPLs declined to 6.5% from 9.6% in 2002.

* Jaime Zobel de Ayala, chairman

www.bpiexpressonline.com

SINGAPORE

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OCBC

OCBC stands out for its strong performance over the past 12 months as it continues to grow its market share against two very strong contenders.

It has made great strides in proving itself in its home market following its merger with Keppel Capital in February 2002. The bank reported a net profit of S$559 million (US$328 million) for the first half of 2004, a rise of 46% over the preceding year. This was driven by strong growth in its fee and commission income, which jumped 37% to S$232 million.

* David Philbrick Conner, CEO

www.ocbc.com.sg

SOUTH KOREA

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SHINHAN BANK

While Shinhan Bank's profits in 2003 fell 20% to 476 billion won ($417 million), down from 595.9 billion won the preceding year, it still excelled when compared to its fellow financial institutions in South Korea.

Shinhan looks relatively healthy due to its smaller exposure to the credit card industry. Last year saw its bad-loan-to-total-loan ratio widen to 2.2% from 1.42% while its delinquency ratio for consumer loans increased to 1.06% last year from 0.72% in 2002 and its corporate loans jumped to 1.51% from 1.14%.

* Sang Hoon Shin, president and CEO

www.shinhan.com

SRI LANKA

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COMMERCIAL BANK OF CEYLON

Commercial Bank of Ceylon excels in Sri Lanka. It is a forward-looking bank, intent on becoming a regional player by the end of the decade. Group assets were up a stunning 50.3% last year to 110.3 billion rupees ($1.1 billion). Meanwhile, net profits rose 17.1% to 1.5 billion rupees.

While the bank has traditionally focused on the corporate sector, it has been making significant steps on the retail side as it brings new products to the market. Last year, total deposits grew by nearly 38% to 75 billion rupees.

* Amitha Gooneratne, managing director and CEO

www.combank.net

TAIWAN

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BANK SINOPAC

At a time when Taiwan's corporates are heading for big business opportunities in China, Bank Sinopac has proven itself keen to respond, say market sources.

The bank has maintained its profitability, recording after-tax net income of NT$4.2 billion ($128 million) in 2003. At the beginning of 2004 the bank established a financial holding company with National Securities and Sinopac Securities.

* Paul C. Lo, chairman

www.banksinopac.com.tw

THAILAND

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SIAM COMMERCIAL BANK

The Siam Commercial Bank recorded a strong performance in 2003. The bank's profits jumped from a net loss of 12.5 billion baht ($320 million) in 2002 to a 12.5 billion baht net profit last year. Profits as well as total assets were at their highest ever, with the bank's return on equity coming in at a lofty 20%.

Total deposits stood at 607 billion baht at the end of 2003, an increase of 39 billion baht from the preceding year. Meanwhile, NPLs continued to decrease to 90 billion baht last year, or 17%, down 30 billion baht from 2002.

* Chirayu Isarangkun Na Ayathaya, chairman

www.scb.co.th

UZBEKISTAN

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NATIONAL BANK OF UZBEKISTAN

State-owned market leader National Bank of Uzbekistan has been a key player in the economic liberalization and ongoing privatization programs in this fast-growing but still very centralized economy. The bank is going through a period of rapid change as it prepares for a 40% privatization slated for later this year.

The first bank in Uzbekistan to conform to International Accounting Standards (IAS), it expects to build on existing strong credit lines from the EBRD, the Asian Bank of Development (ABD) and others by directly tapping international markets. Last year its loan portfolio grew by nearly 40% while its client base grew by 20% thanks to an expanded range of services including Internet banking and an integrated card and ATM network.

* Zainiddin Mirkhodjaev, chairman

www.nbu.com

World's Best Treasury & Cash Management Providers

The big international banks make it look easy, sweeping up dollars and euros and various other currencies from remote corners of the world and investing the resulting cash pile in the highest-yielding instruments with acceptable risks, in order to boost a clients return on equity.

The job is easier said than done, however, and involves a host of behind-the-scenes providers of technology as well as innovative bankers who figure out how to move money with the sun, or leave it sitting where it is, and invest the notional balance efficiently in a far-off land. Not only does effective cash management help unlock working capital, but the outsourcing of routine operations also frees corporate treasurers to focus on risk management, long-term funding and business strategy.

With input from industry analysts, corporate executives and technology experts, Global Finance selected the best providers of treasury and cash-management services, globally and in nine categories across four regions of the world. A variety of subjective and objective criteria were used for choosing the winners. Factors considered include market leadership, customer service, competitive pricing and innovative technologies.

BEST OVERALL BANK FOR CASH MANAGEMENT

GLOBAL WINNER

* Citigroup

REGIONAL WINNERS

* North America: Citigroup

* Europe: Deutsche Bank

* Latin America: Banco Santander Central Hispano

* Asia: HSBC

BEST BANK FOR LIQUIDITY/WORKING CAPITAL MANAGEMENT

* North America: Citigroup

* Europe: Deutsche Bank

* Latin America: Citigroup

* Asia: HSBC

BEST PROVIDER OF OUTSOURCED TREASURY SOLUTIONS

* North America: JPMorqan Chase

* Europe: ABN AMRO

* Latin America: Banco Santander Central Hispano

* Asia: HSBC

BEST PROVIDER OF MONEY MARKET FUNDS

* North America: Citigroup

* Europe: Citigroup

* Latin America: Banco Santander Central Hispano

* Asia: HSBC

BEST TREASURY MANAGEMENT SYSTEM

* North America: SunGard Treasury Systems

* Europe: Trema

* Latin America: Trema

* Asia: SunGard Treasury Systems

BEST BANK FOR RISK MANAGEMENT

* North America: JPMorgan Chase

* Europe: UBS

* Latin America: Banco Santander Central Hispano

* Asia: HSBC

BEST BANK FOR CROSS-BORDER POOLING AND NETTING

* North America: JPMorgan Chase

* Europe: ABN AMRO

* Latin America: Citigroup

* Asia: Citigroup

BEST BANK FOR PAYMENTS AND COLLECTIONS

* North America: JPMorgan Chase

* Europe: Deutsche Bank

* Latin America: Citigroup

* Asia: HSBC

BEST CLS-LINKED BANK OFFERING

* North America: Citigroup

* Europe: ABN AMRO

* Latin America: Banco do Brasil

* Asia: Mitsubishi Tokyo Financial Group

IMAGE TABLE 109

WORLD'S BEST SUB-CUSTODIANS

WORLD'S BEST FOREIGN EXCHANGE BANKS & PROVIDERS

WORLD'S BEST TRADE FINANCE PROVIDERS

SIDEBAR

DSK BANK'S PROFITS WERE UP BY SOME 20% ON THE BACK OF AN 18.4% GROWTH IN ASSETS

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CSOB HAS SUCCEEDED IN GROWING ITS RETAIL LOAN BOOK FOUR TIMES FASTER THAN THE MARKET

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A STRONG 2003 PERFORMANCE MEANS OTP BANK REMAINS THE BANK OF CHOICE IN HUNGARY

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UNICREDITO IS ITALY'S MOST PROFITABLE BANK WITH NET INCOME GROWTH IN 2003 OF euro2 BILLION

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MOBIASBANCA HAS NEARLY DOUBLED NET PROFITS, WITH RETURN ON EQUITY RUNNING ABOVE 20%

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RAIFFEISEN WINS FOR ITS REMARKABLE TURNAROUND IN THE TWO YEARS SINCE PRIVATIZATION

SIDEBAR

TATRA BANKA CONTINUES TO EXPAND AND REFINE ITS INTERNET BANKING OFFERINGS

SIDEBAR

AKBANK'S MOVE INTO MUTUAL FUNDS AND ITS STRATEGY OF TARGETING SMES HAVE PAID OFF

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FIRST BANK OF NIGERIA'S FLEET OF VANS BRINGS BANKING ON WHEELS TO REMOTE VILLAGES

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PRUDENT LENDING POLICIES SAW BANQUE DE TUNISIE FARE BETTER THAN OTHER LEADING BANKS

IMAGE ILLUSTRATION 110SIDEBAR

BANCOLOMBIA CONTINUED TO SET ITS SIGHTS BEYOND ITS BORDERS. OPENING AN AGENCY IN MIAMI

IMAGE ILLUSTRATION 111SIDEBAR

BANCO CUSCATLAN HAS ESTABLISHED STRATEGIC ALLIANCES IN HONDURAS AND NICARAGUA

IMAGE ILLUSTRATION 112SIDEBAR

MEXICO'S BANAMEX IS POISED TO BECOME A MODEL FOR HOW TO MANAGE A LATIN AMERICAN BANK

IMAGE ILLUSTRATION 113SIDEBAR

BANCO MERCANTIL CONTINUES TO DO THE RIGHT THINGS TO RETAIN ITS LEADERSHIP POSITION

IMAGE ILLUSTRATION 114SIDEBAR

BOC WAS THE FIRST CHINESE BANK TO LIST ITS SHARES ON AN INTERNATIONAL STOCK MARKET

IMAGE ILLUSTRATION 115SIDEBAR

KYRGYZSTAN'S ASIAUNIVERSALBANK HAS LEAPFROGGED THE COUNTRY'S INFRASTRUCTURE GAP

IMAGE ILLUSTRATION 116SIDEBAR

SHINHAN BANK LOOKS RELATIVELY HEALTHY DUE TO ITS SMALLER EXPOSURE TO CREDIT CARDS