Author: Dan Keeler

THE BIGGEST EMERGING MARKET BANKS

Global Finance unveils its second annual league table of the biggest emerging market banks ranked by total assets.

By Dan Keeler

As the world’s key emerging markets continue to drive the global economy out of recession, Global Finance unveils its second annual Global Finance EM 200, the definitive list of the biggest banks in the emerging markets. This year’s results show that, a year after the storm broke that many believed would send the emerging markets into a tailspin, the leading banks of the developing world are proving bigger, stronger and more resilient than ever.

In a turbulent global economy, size becomes an increasingly important asset to a financial institution. Michael Tomalin, group chief executive of the National Bank of Abu Dhabi—one of the biggest banks in the Middle East region—says his bank’s size has helped it ensure customers remain confident in his bank’s ability to serve them. “Our strong franchise provides our customers security and liquidity comfort that their money is safe and available whenever they need it,” he says. His bank’s scale has also enabled it to maintain a presence where competitors may have had to cut back. “Being one of the biggest banks…has given us the opportunity to grow where other banks may be in retreat,” Tomalin says.

The biggest banks in any region are in a much better position to snap up smaller rivals as business activity begins to return to normal. László Bencsik, deputy CEO and head of the strategic and financial division of Hungary’s OTP Bank, says he is keeping a close eye on potential acquisition opportunities in Central and Eastern Europe. “We expect a certain level of consolidation as the crisis forces several banking groups to rethink their strategies,” he says. Although CEE was hardest hit of all the emerging markets, Bencsik believes the region will regain its appeal and present some interesting opportunities. “There are strong arguments for continuing to increase our regional presence when the crisis reaches its end. The region will remain attractive strategically as convergence will continue in CEE countries, and these economies and their banking markets will probably grow faster than, for example, the Western European ones,” he adds.

This year’s EM 200 clearly reflects changes taking place among the emerging markets as a whole. China’s banks have tightened their stranglehold on the top of the league, snagging six of the top 10 spots. Brazilian and Russian banks are clearly marching up the table while South Korea’s biggest banks have seen their standings slide over the past year.

Total assets of the top 20 banks have grown by a stunning $1.06 trillion, but almost all of that increase was posted by the top 10, further illustrating China’s astonishing rate of asset growth and acquisition.

Methodology: The basis of all the rankings is the size of total assets, i.e., the balance sheet total. All figures have been converted into US dollars at the rate applicable at the date of that balance sheet. Great care has been taken to ensure the information’s accuracy, but Bankers’ Almanac can accept no responsibility for any losses or damages arising from any errors or omissions. These bank rankings are based on and compiled from balance sheet information held by Bankers’ Almanac on October 8, 2009, and from Global Finance research.

Rank Bank Name Country

Total Assets

($ billion)

Balance

Sheet Date

Consolidated

Data?

1 Industrial & Commercial Bank of China
China
1,430.04 12/31/08
Y
2 China Construction Bank
China 1,107.35 12/31/08
Y
3 Agricultural Bank of China
China 1,028.05 12/31/08 Y
4 Bank of China
China
1,018.86 12/31/08
Y
5 Bank of Communications*
China 393.55
12/31/08
N
6 Banco Itaú
Brazil
257.40 12/31/08
Y
7 IChina Merchants Bank*
China
230.56
12/31/08
N
8 Sberbank
Russia
229.10
12/31/08
Y
9 Banco do Brasil
Brazil
224.69
12/31/08
Y
10 Kookmin Bank
South Korea
198.26 12/31/08
N
11 Banco Bradesco
Brazil
195.87
12/31/08
Y
12 State Bank of India
India
180.88 3/31/08
N
13 China Citic Bank Corporation*
China
174.29
12/31/08
N
14 Woori Bank
South Korea
172.50 12/31/08
N
15 Shinhan Bank
South Korea
161.55
12/31/08
N
16 China Minsheng Banking Corporation
China
153.91
12/31/08
N
17 Industrial Bank
China
149.63
12/31/08
N
18 Caixa Econômica Federal
Brazil
127.55
12/31/08
N
19 VTB Bank
Russia
125.85
12/31/08
Y
20 Shanghai Pudong Development Bank
China 125.27
12/31/07
N
21 Korea Development Bank*
South Korea 125.22
12/31/08 N
22 Hana Bank
South Korea
124.93
12/31/07
N
23 China Everbright Bank
China 124.85
12/31/08
N
24 Bank of Taiwan
Taiwan
109.52
12/31/08
N
25 Hua Xia Bank*
China
107.37
12/31/08
N
26 Standard Bank of South Africa
South Africa
94.76
12/31/08
N
27 Banco Santander
Brazil
88.97 12/31/08 N
28 BBVA Bancomer
Mexico
84.42
12/31/08
Y
29 Guangdong Development Bank
China 80.03
12/31/08
N
30 Unibanco
Brazil
79.83 12/31/08
N
31 Absa Bank
South Africa
78.59
12/31/08
Y
32 Korea Exchange Bank
South Korea
78.45
12/31/08
N
33 Emirates NBD
UAE

76.89

12/31/08 Y
34 Taiwan Cooperative Bank
Taiwan
75.79 12/31/08
N
35 ICICI Bank
India 75.36
3/31/09
N
36 FirstRand Bank
South Africa
71.73
6/30/08
N
37 IShenzhen Development Bank
China
69.59
12/31/08
N
38 Malayan Banking
Malaysia
67.18
6/30/08
N
39 Gazprombank
Russia
62.99
12/31/08 Y
40 Mega International Commercial Bank
Taiwan
62.48 12/31/08
N
41 Land Bank of Taiwan
Taiwan 62.37
12/31/08
N
42 Bank of Beijing
China
61.12
12/31/08
N
43 Standard Chartered First Bank Korea*
South Korea
60.14
12/31/08
Y
44 National Commercial Bank**
Saudi Arabia
59.15
12/31/08
N
45 Nedbank
South Africa
58.50
12/31/08
Y
46 Bank Melli Iran**
Iran
58.00 12/31/07
N
47 Banco Itaú BBA
Brazil
56.16
12/31/08
N
48 Banamex
Mexico
54.51
12/31/07
Y
49 Bank of Shanghai
China
53.90
12/31/08
N
50 First Commercial Bank
Taiwan
53.80
12/31/08
N
51 Hua Nan Commercial Bank*
Taiwan
51.20
12/31/08
N
52 Banco Santander (Mexico)
Mexico
51.18
12/31/08
Y
53 OTP Bank
Hungary
49.09
12/31/08
Y
54 Punjab National Bank
India
49.06
3/31/09
N
55 HSBC Bank Brasil—Banco Múltiplo
Brazil
48.73
12/31/08
N
56 Public Bank
Malaysia
48.08
12/31/07
N
57 Bangkok Bank Public
Thailand
47.74
12/31/08 N
58 Samba Financial Group**
Saudi Arabia
47.68
12/31/07
N
59 Citibank Korea
South Korea
47.50
12/31/08
N
60 Bank of Baroda
India
46.00
3/31/08
N
61 Chinatrust Commercial Bank*
Taiwan
45.75
12/31/08
N
62 Arab Bank
Jordan
45.63
12/31/08
Y
63 National Bank of Abu Dhabi
UAE
44.83
12/31/08 Y
64 Bank of India
India
44.80
3/31/09
N
65 Ceska Sporitelna
Czech Republic
44.73
12/31/08
Y
66 Bank Polska Kasa Opieki
Poland
44.06
12/31/08
Y
67 Al Rajhi Bank
Saudi Arabia
43.95
12/31/08
Y
68 PKO Bank Polski Spolka Akcyjna
Poland
43.83
12/31/08
N
69 Canara Bank
India

43.64

3/31/09 N
70 National Bank of Kuwait
Kuwait
43.30
12/31/08
Y
71 Bank Saderat Iran
Iran
42.93
3/20/08
Y
72 Ceskoslovenska Obchodni Banka
Czech Republic
42.77
12/31/08
Y
73 Bank Mellat
Iran
42.72
3/20/08
N
74 Chang Hwa Commercial Bank*
Taiwan 42.61
12/31/08
N
75 Riyad Bank
Saudi Arabia 42.54
12/31/08 Y
76 CIMB Bank*
Malaysia
42.31 12/31/08
N
77 Banco Mercantil del Norte
Mexico 41.93
12/31/08
Y
78 Qatar National Bank
Qatar
41.73