Safest Emerging Markets Banks 2013


ANNUAL REPORT: SAFETY COMES FIRST

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

10-emerging-markets-safest-bank-awards National 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.

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
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
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
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
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
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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