Safest Emerging Markets Banks 2013

ANNUAL REPORT: SAFETY COMES FIRST

 

By Andrew Cunningham

 

Global Finance presents its annual ranking of the Top 50 Safest Banks in the Emerging Markets.

 

10-emerging-markets-safest-bank-awardsNational Bank of Abu Dhabi (NBAD) is the safest emerging markets bank, following its October upgrade by Standard and Poor’s. The bank now holds AA- ratings from all three major ratings agencies. It’s the only emerging markets bank to do so.

 

Eight banks follow NBAD in the rankings, with two AA- ratings and an A+. Banks in Asia and the GCC account for 44 of the safest 50 banks in emerging markets, further strengthening those regions’ positions in comparison to recent years. In 2012, Asian and GCC banks accounted for 43 of the top 50 banks, and in 2011 they accounted for 39.

 

Three countries contribute the 22 Asian banks in the top 50: South Korea, with 10; China, with eight; and Taiwan with four. In contrast, five of the six GCC states contribute to the 22 GCC banks in the top 50—Bahrain is the exception. Saudi Arabia contributes nine banks to the top 50, the same as last year. They account for three-quarters of all locally incorporated Saudi banks, and an even bigger proportion of Saudi banking assets.

 

Outside Asia and the GCC, only two countries contribute banks to the top 50: Chile, with four, and the Czech Republic, with two. New entrants to this year’s rankings include HSBC Bank Oman (ranked 48), the result of a merger earlier this year between HSBC’s branch in Muscat and the locally owned Oman International Bank; and China’s Bank of Communications (ranked 49), which was upgraded by Fitch.

 

This year’s rankings also include the Export-Import Bank of China and the Export-Import Bank of Korea, both of whose ratings place them near the top of the rankings. As was the case last year, two A- ratings and one A was the standard needed to claim a place in the top 50 global rankings.

 

10-emerging-markets-safest-banks

 

The regional lists continue to be dominated by banks in a handful of countries. Chilean and Mexican banks hold all but two of the top 10 positions in Latin America. In Central and Eastern Europe and the former Soviet Union, Czech and Polish banks dominate, although Russia’s Vnesheconombank retains its position in the top 10, at number seven, and Sberbank, at nine.

 

Outside the global and regional rankings, over the past year, both Fitch and Moody’s have upgraded the Turkish Republic and many of its banks to investment grade. Malaysian banks hold higher ratings than many of the banks listed in the regional rankings, but they fail to score highly enough to be included in the Asian regional list.

 

Outside South Africa, rating coverage of banks in sub-Saharan Africa remains small, and only South African institutions hold investment-grade ratings.

 

HOW WE MEASURE THE SAFETY OF BANKS

 

Fitch/S&P Moody’s
AAA Aaa
AA+ Aa1
AA Aa2
AA- Aa3
A+ A1
A A2
A- A3
BBB+ Baa1
The safest banks chart compares the ratings for the world’s largest 500 banks, based on asset size. Long-term foreign currency ratings issued by Fitch Ratings, Standard & Poor’s and Moody’s Investors Service were used. Where possible, ratings on holding companies were used rather than operating companies, and banks that are wholly owned by other banks were omitted. Within each rank set, banks are rated according to asset size, based on data for the most recent annual reporting period provided by Fitch Solutions and Moody’s. In previous years we assigned a “tie” score to banks that had the same number of points and had assets within $5 billion of each other. We have changed our methodology on this point and will no longer be giving “ties.” Ratings are reproduced with permission from the three ratings agencies, with all rights reserved. A rating is not a recommendation to purchase, sell or hold a security, and it does not comment on market price or suitability for a particular investor.

 

TOP 50 SAFEST EMERGING MARKETS BANKS 2013
Rank Bank Name Fitch rating Moody’s rating S&P rating Total Points Reporting Assets ($million) Country
1 National Bank Of Abu Dhabi AA- Aa3 AA- 21 81,851 UAE
2 China Development Bank A+ Aa3 AA- 20 1,195,563 China
3 Agricultural Development Bank of China A+ Aa3 AA- 20 364,584 China
4 Export-Import Bank of China A+ Aa3 AA- 20 247,859 China
5 Industrial Bank of Korea AA- Aa3 A+ 20 184,693 South Korea
6 Korea Finance Corporation AA- Aa3 A+ 20 **288,203 South Korea
7 National Bank of Kuwait AA- Aa3 A+ 20 58,409 Kuwait
8 Export-Import Bank of Korea AA- Aa3 A+ 20 50,985 South Korea
9 BancoEstado A+ Aa3 AA- 20 48,367 Chile
10 Korea Development Bank AA- Aa3 A 19 154,600 South Korea
11 Qatar National Bank A+ Aa3 A+ 19 100,784 Qatar
12 Samba Financial Group A+ Aa3 A+ 19 53,126 Saudi Arabia
13 Bank of Taiwan N/R Aa3 A+ 18.5 139,628 Taiwan
14 Banco de Chile N/R Aa3 A+ 18.5 48,592 Chile
15 National Commercial Bank A+ A1 A+ 18 92,085 Saudi Arabia
16 Al Rajhi Bank A+ A1 A+ 18 71,302 Saudi Arabia
17 Banco Santander Chile A+ Aa3 A 18 51,727 Chile
18 Riyad Bank A+ A1 A+ 18 50,715 Saudi Arabia
19 Abu Dhabi Commercial Bank A+ A1 A 17 49,230 UAE
20 Banque Saudi Fransi A Aa3 A 17 42,074 Saudi Arabia
21 SABB A Aa3 A 17 41,774 Saudi Arabia
22 Union National Bank A+ A1 N/R 17 23,727 UAE
23 Industrial and Commercial Bank of China A A1 A 16 2,789,090 China
24 China Construction Bank A A1 A 16 2,221,582 China
25 Agricultural Bank of China A A1 A 16 2,105,758 China
26 Bank of China A A1 A 16 2,016,129 China
27 KB Kookmin Bank A A1 A 16 240,737 South Korea
28 Shinhan Bank A A1 A 16 218,652 South Korea
29 NongHyup Bank A A1 A 16 182,065 South Korea
30 Kuwait Finance House A+ A1 A- 16 52,288 Kuwait
31 Arab National Bank A A1 A 16 36,437 Saudi Arabia
32 Hana Bank N/R A1 A 15.5 **161,109 South Korea
33 Land Bank of Taiwan N/R Aa3 A- 15.5 *82,040 Taiwan
34 First Gulf Bank A+ A2 N/R 15.5 47,661 UAE
35 Abu Dhabi Islamic Bank A+ A2 N/R 15.5 23,326 UAE
36 Mega International Commercial Bank A- A1 A 15 83,631 Taiwan
37 Chinatrust Commercial Bank A A2 A 15 **72,416 Taiwan
38 Česká spořitelna A A2 A 15 48,303 Czech Republic
39 Banco de Crédito e Inversiones A- A1 A 15 37,593 Chile
40 Commercial Bank of Qatar A A1 A- 15 21,988 Qatar
41 Woori Bank A- A1 A- 14 230,930 South Korea
42 Korea Exchange Bank A- A1 A- 14 97,137 South Korea
43 Komerční banka A- A2 A 14 41,293 Czech Republic
44 Bank Muscat A- A1 A- 14 20,582 Oman
45 Saudi Hollandi Bank A- A1 N/R 14 18,268 Saudi Arabia
46 Doha Bank A A2 A- 14 15,168 Qatar
47 Commercial Bank of Kuwait A+ A3 N/R 14 *13,044 Kuwait
48 HSBC Bank Oman A+ A3 N/R 14 6,266 Oman
49 Bank of Communications A A3 A- 13 838,430 China
50 Saudi Investment Bank A- A2 A- 13 15,751 Saudi Arabia
CENTRAL AND EASTERN EUROPE: Safest Emerging Markets Banks 2013
Rank Bank Name Fitch rating Moody’s rating S&P rating Total Points Reporting Assets ($mn) Country
1 Česká spořitelna A A2 A 15 48,303 Czech Republic
2 Komerční banka A- A2 A 14 41,293 Czech Republic
3 PKO Bank Polski N/R A2 A- 12.5 62,421 Poland
4 Bank Pekao A- A2 BBB+ 12 48,700 Poland
5 ING Bank Śląski A Baa1 N/R 11 25,251 Poland
6 BRE Bank A Baa3 BBB+ 9 32,984 Poland
7 Vnesheconombank BBB Baa1 BBB 7 96,108 Russia
8 Bank Handlowy w Warszawie A- Baa3 BBB 7 *14,058 Poland
9 Sberbank BBB Baa1 N/R 6.5 497,067 Russia
10 Bank Zachodni WBK BBB Baa1 N/R 6.5 19,364 Poland
11 VTB Bank BBB Baa2 BBB 6 244,155 Russia
LATIN AMERICA: Safest Emerging Markets Banks 2013
Rank Bank Name Fitch rating Moody’s rating S&P rating Total Points Reporting Assets ($mn) Country
1 BancoEstado A+ Aa3 AA- 20 48,367 Chile
2 Banco de Chile N/R Aa3 A+ 18.5 48,592 Chile
3 Banco Santander Chile A+ Aa3 A 18 51,727 Chile
4 Banco de Crédito e Inversiones A- A1 A 15 37,593 Chile
5 HSBC Mexico A Baa1 BBB 10 37,314 Mexico
6 Banco Santander Mexico BBB+ Baa1 BBB 8 57,506 Mexico
7 Banco de Crédito del Perú BBB+ Baa2 BBB+ 8 35,450 Peru
8 Banco Nacional de Obras y Servicios Publicos BBB+ Baa1 BBB 8 27,229 Mexico
9 BBVA Chile N/R Baa1 BBB+ 8 19,575 Chile
10 BBVA Continental BBB+ N/R BBB+ 8 19,486 Peru
11 Banco Nacional de Comercio Exterior BBB+ Baa1 BBB 8 16,589 Mexico
12 Scotiabank Perú BBB+ Baa2 BBB+ 8 *12,366 Peru
13 First Citizens Bank N/R Baa1 BBB+ 8 5,299 Trinidad & Tobago
ASIA: Safest Emerging Markets Banks 2013
Rank Bank Name Fitch rating Moody’s rating S&P rating Total Points Reporting Assets ($mn) Country
1 China Development Bank A+ Aa3 AA- 20 1,195,563 China
2 Agricultural Development Bank of China A+ Aa3 AA- 20 364,584 China
3 Export-Import Bank of China A+ Aa3 AA- 20 247,859 China
4 Industrial Bank of Korea AA- Aa3 A+ 20 184,693 South Korea
5 Korea Finance Corporation AA- Aa3 A+ 20 **288,203 South Korea
6 Export-Import Bank of Korea AA- Aa3 A+ 20 50,985 South Korea
7 Korea Development Bank AA- Aa3 A 19 154,600 South Korea
8 Bank of Taiwan N/R Aa3 A+ 18.5 139,628 Taiwan
9 Industrial and Commercial Bank of China A A1 A 16 2,789,090 China
10 China Construction Bank A A1 A 16 2,221,582 China
11 Agricultural Bank of China A A1 A 16 2,105,758 China
12 Bank of China A A1 A 16 2,016,129 China
13 KB Kookmin Bank A A1 A 16 240,737 South Korea
14 Shinhan Bank A A1 A 16 218,652 South Korea
15 NongHyup Bank A A1 A 16 182,065 South Korea
MIDDLE EAST: Safest Emerging Markets Banks 2013
Rank Bank Name Fitch rating Moody’s rating S&P rating Total Points Reporting Assets ($mn) Country
1 National Bank of Abu Dhabi AA- Aa3 AA- 21 81,851 UAE
2 National Bank of Kuwait AA- Aa3 A+ 20 58,409 Kuwait
3 Qatar National Bank A+ Aa3 A+ 19 100,784 Qatar
4 Samba Financial Group A+ Aa3 A+ 19 53,126 Saudi Arabia
5 National Commercial Bank A+ A1 A+ 18 92,085 Saudi Arabia
6 Al Rajhi Bank A+ A1 A+ 18 71,302 Saudi Arabia
7 Riyad Bank A+ A1 A+ 18 50,715 Saudi Arabia
8 Abu Dhabi Commercial Bank A+ A1 A 17 49,230 UAE
9 Banque Saudi Fransi A Aa3 A 17 42,074 Saudi Arabia
10 SABB A Aa3 A 17 41,774 Saudi Arabia
11 Union National Bank A+ A1 N/R 17 23,727 UAE
12 Kuwait Finance House A+ A1 A- 16 52,288 Kuwait
13 Arab National Bank A A1 A 16 36,437 Saudi Arabia
14 First Gulf Bank A+ A2 N/R 15.5 47,661 UAE
15 Abu Dhabi Islamic Bank A+ A2 N/R 15.5 23,326 UAE
16 Commercial Bank of Qatar A A1 A- 15 21,988 Qatar
SUB-SAHARAN AFRICA: Safest Emerging Markets Banks 2013
Rank Bank Name Fitch rating Moody’s rating S&P rating Total Points Reporting Assets ($mn) Country
1 Absa Bank A- Baa1 BBB 9 89,927 South Africa
2 FirstRand Bank BBB Baa1 BBB 7 84,156 South Africa
3 Standard Bank of South Africa BBB Baa1 BBB 7 115,161 South Africa
4 Nedbank BBB Baa1 BBB 7 80,339 South Africa
5 Investec Bank BBB- Baa1 N/R 5 33,356 South Africa

N/R – No Rating
Ratings as of 25 October 2013
Source for ratings: Fitch Ratings, Standard & Poor’s, Moody’s Investors Service
Source for reporting assets: Fitch Solutions, except *Moody’s Investors Service, **Bank’s financial statements

 

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