Top 50 Safest Global Banks 2015

With financial markets strengthening in most quarters, a stellar credit rating—not just a solid one—is now required to gain a place on our list of the World’s Top 50 Safest Global Banks.


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A CUT ABOVE


One thing became clear early on when determining this year’s ranking of the World’s Safest Banks: It is getting a lot harder to make the grade.

To be named one of Global Finance’s 50 safest banks in 2015, financial institutions must hold two credit ratings of at least AA- and one no lower than A+—or an equivalent combination—from among the three major international credit ratings agencies. By comparison, a single AA- rating and two A+ ratings got you on the list in 2014. In years before that, three A+ ratings were enough to secure a position in the top 50.

The loftier standards are mostly due to a raft of rating upgrades, often from Moody’s. Norway’s DNB, for one, received a two-notch upgrade from Moody’s in June 2015, vaulting the bank into 39th spot on the list. Likewise, Liechtenstein’s LGT Bank received a two-notch upgrade from Moody’s in May, pushing the bank to 49th position in the rankings. In both cases, the upgrades were prompted by revisions to Moody’s
bank-rating methodology.

Higher up the ranking, however, familiar names continue to dominate. Germany’s KfW, with assets of $594 billion, retains its crown as the safest bank in the world, with AAA ratings from Moody’s, Fitch and Standard & Poor’s. Three other banks hold three AAA ratings—and their positions on the list as well. Switzerland’s Zürcher Kantonalbank once again comes in at number two. German bank Landwirtschaftliche Rentenbank ranks third. L-Bank (for Landeskreditbank Baden-Württemberg – Förderbank), also headquartered in Germany, is fourth on the list.

In contrast, two financial institutions cracked the Top 50 for the first time. Swiss bank Pictet & Cie enters the ranking (at number 24) for the first time. The bank has not been eligible for inclusion in the past owing to its lack of financial disclosure. Just coming up with an accurate figure for the bank’s year-end assets can be difficult. During the second half of 2014, however, Pictet  & Cie began issuing financial statements as a result of a change in its legal structure to a limited liability company.

Germany’s Deutsche Apotheker- und Ärztebank also enters the ranking for the first time this year, at number 23. The bank was ineligible for inclusion in previous years because of its small asset base. Similarly, Kiwibank reenters the ranks of the Safest 50 this year (number 32). The New Zealand financial institution was excluded from consideration in the two previous years because of insufficient assets. Banque Cantonale Vaudoise is the biggest mover in this year’s ranking of safest banks. The Swiss bank leaped 29 places to number 15—following a two-notch upgrade from Moody’s in May. Germany’s DZ Bank climbed 25 points to number 21 after receiving a two-notch upgrade from Moody’s in June and a one-notch upgrade from Fitch in March. Both of Moody’s rating actions were prompted by its revamped rating methodology, which, among other things, factors in the value of support from shareholders and parent companies.

The biggest casualty in 2015 was HSBC. The UK-based bank ranked 27th in 2014. But it fell out of the rankings this year after ratings downgrades from Moody’s and Standard & Poor’s. BNY Mellon, U.S. Bancorp and Saudi Arabia’s Samba Financial Group also dropped out of the top 50, despite holding the same ratings as they did last year. With bank credit-worthiness on the rise, a score of 19 points no longer makes the grade.

EUROPEAN BANKS DOMINATE

European banks account for 22 of the World’s 50 Safest Banks, up from 19, last year.

In fact, European banks that are government-owned—or have ties to state or regional authorities—occupy the first nine places on the list. But France’s
state-owned Société de Financement Local (SFIL), which placed 10th in 2014, dropped four places to number 14 in this year’s ranking, following a downgrade by Fitch in December.


As a result, TD Bank Group moves to 10th position. With the bump-up, the Canadian company takes the honor for the highest-ranked private-sector bank in the top 50. All told, six banks from Canada make the list.

Ten companies from Asia scored high enough to secure a place in the ranking—three each from China, South Korea and Singapore, along with Hong Kong’s Hang Seng Bank. No Japanese bank makes the list. Four financial institutions from Australia are in the top 50, led by National Australia Bank at number 17. Kiwibank is the sole bank from New Zealand deemed by Global Finance to be among the world’s safest.

Three banks from the Gulf  States feature among the Safest 50. But no banks from other Middle Eastern countries or sub-Saharan Africa appear on the list. Only three banks from the United States feature in the ranking. And BancoEstado from Chile, at 48th, is the sole representative from Latin America. To be eligible for inclusion in Global Finance’s World’s Safest Banks, financial institutions must be among the largest 500 banks in the world, ranked by assets, and they must be rated by at least two of the three international credit-rating agencies. Eligible banks are then scored, with 10 points being awarded for an AAA rating down to one point for a BBB- rating. If a bank is rated by only two of the agencies, an implied score for the third rating is created. The figure is calculated by taking the average of the other two scores and then deducting one point. Banks that are wholly owned by other banks are not eligible for inclusion. Banks that score the same number of points are ranked in order of asset size. That approach underscores the strong positive correlation between bank size and high credit ratings.

NEXT PAGE | VIEW THE RANKINGS

 


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METHODOLOGY | BEHIND THE RANKINGS

Our ratings apply to the world’s largest 500 banks by asset size. We calculate the rankings based on the long-term foreign currency ratings issued by Fitch Ratings, Standard & Poor’s and Moody’s Investors Service. Where possible, ratings on holding companies rather than operating companies were used, and banks that are wholly owned by other banks were omitted. Within each rank set, banks are organized according to asset size based on data for the most recent annual reporting period provided by Fitch Solutions and Moody’s. Ratings are reproduced with permission from the three rating 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.

Fitch Ratings / Standard & Poor’s

Moody’s

AAA

Aaa

AA+

Aa1

AA

Aa2

AA-

Aa3

A+

A1

A

A2

A-

A3


World’s Safest Banks 2015 Top 50

Rank

Bank

Fitch

Moody’s

S&P

Total Score

Reporting Assets $mn

Country

1

KfW

AAA

Aaa

AAA

30

593,750

Germany

2

Zürcher Kantonalbank

AAA

Aaa

AAA

30

160,137

Switzerland

3

Landwirtschaftliche Rentenbank

AAA

Aaa

AAA

30

107,862

Germany

4

L-Bank

AAA

Aaa

AAA

30

84,680

Germany

5

Bank Nederlandse Gemeenten

AA+

AAA

AA+

28

186,360

Netherlands

6

Nederlandse Waterschapsbank

N/R

Aaa

AA+

27.5

85,718

Netherlands

7

NRW.BANK

AAA

Aa1

AA-

26

172,459

Germany

8

Caisse des Dépôts et Consignations

AA

Aa1

AA

25

197,337

France

9

Banque et Caisse d’Epargne de l’Etat

N/R

Aa2

AA+

24.5

49,868

Luxembourg

10

TD Bank Group*

AA-

Aa1

AA-

23

837,909

Canada

11

DBS Bank

AA-

Aa1

AA-

23

333,510

Singapore

12

Oversea-Chinese Banking Corp

AA-

Aa1

AA-

23

303,660

Singapore

13

United Overseas Bank

AA-

Aa1

AA-

23

232,147

Singapore

14

Société de Financement Local (SFIL)

AA-

Aa2

AA

23

106,867

France

15

Banque Cantonale Vaudoise

N/R

Aa2

AA

23

42,256

Switzerland

16

Royal Bank of Canada*

AA

Aa3

AA-

22

834,191

Canada

17

National Australia Bank**

AA-

Aa2

AA-

22

773,062

Australia

18

Commonwealth Bank of Australia***

AA-

Aa2

AA-

22

745,527

Australia

19

ANZ Group**

AA-

Aa2

AA-

22

675,733

Australia

20

Westpac**

AA-

Aa2

AA-

22

674,639

Australia

21

DZ Bank

AA-

Aa2

AA-

22

488,701

Germany

22

Svenska Handelsbanken

AA-

Aa2

AA-

22

364,072

Sweden

23

Deutsche Apotheker-
und Ärztebank

AA-

Aa2

AA-

22

42,645

Germany

24

Pictet & Cie

AA-

Aa2

N/R

21.5

34,519

Switzerland

25

Rabobank

AA-

Aa2

A+

21

826,862

Netherlands

26

Nordea

AA-

Aa3

AA-

21

812,604

Sweden

27

Bank of Nova Scotia*

AA-

Aa2

A+

21

714,560

Canada

28

Hang Seng Bank

A+

Aa2

AA-

21

162,980

Hong Kong

29

National Bank
of Abu Dhabi

AA-

Aa3

AA-

21

102,409

UAE

30

AgriBank

AA-

Aa3

AA-

21

94,425

United States

31

Caisse centrale Desjardins

AA-

Aa2

A+

21

38,213

Canada

32

Kiwibank

AA

Aa3

A+

21

14,634

New Zealand

33

China Development Bank

A+

Aa3

AA-

20

1,685,954

China

34

Sparkassen-Finanzgruppe (Sparkasse)

A+

Aa2

N/R

20

1,523,129

Germany

35

Bank of Montreal*

AA-

Aa3

A+

20

522,092

Canada

36

Agricultural Development
Bank of China

A+

Aa3

AA-

20

513,517

China

37

Export-Import Bank of China

A+

Aa3

AA-

20

386,953

China

38

CIBC*

AA-

Aa3

A+

20

367,985

Canada

39

DNB

N/R

Aa2

A+

20

356,573

Norway

40

Korea Development Bank

AA-

Aa3

A+

20

252,231

South Korea

41

HSBC France

AA-

A1

AA-

20

244,043

France

42

Industrial Bank of Korea

AA-

Aa3

A+

20

199,910

South Korea

43

Pohjola Bank

A+

Aa3

AA-

20

134,062

Finland

44

Qatar National Bank

AA-

Aa3

A+

20

133,614

Qatar

45

CoBank

AA-

N/R

AA-

20

107,428

United States

46

National Bank of Kuwait

AA-

Aa3

A+

20

74,399

Kuwait

47

Export-Import Bank of Korea
(KEXIM)

AA-

Aa3

A+

20

66,952

South Korea

48

BancoEstado

A+

Aa3

AA-

20

46,291

Chile

49

LGT Bank

N/R

Aa2

A+

20

31,031

Liechtenstein

50

AgFirst

AA-

N/R

AA-

20

29,503

United States

Source for ratings: Fitch Ratings, Standard & Poor’s, Moody’s Investors Service  
Source for Reporting Assets: Fitch Solutions   

Statement Ratings current as of 12/31/14
*Statement Ratings current as of 10/31/14
**Statement Ratings current as of 9/30/14
***Statement Ratings current as of 6/30/14

NEXT PAGE | TOP REGIONAL BANKS

 


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North America

Rank

Bank

Fitch

Moody’s

S&P

Total Score

Reporting Assets $mn

Country

1

TD Bank Group*

AA-

Aa1

AA-

23

837,909

Canada

2

Royal Bank of Canada*

AA

Aa3

AA-

22

834,191

Canada

3

Bank of Nova Scotia*

AA-

Aa2

A+

21

714,560

Canada

4

AgriBank

AA-

Aa3

AA-

21

94,425

United States

5

Caisse centrale Desjardins

AA-

Aa2

A+

21

38,213

Canada

6

Bank of Montreal*

AA-

Aa3

A+

20

522,092

Canada

7

CIBC*

AA-

Aa3

A+

20

367,985

Canada

8

CoBank

AA-

N/R

AA-

20

107,428

United States

9

AgFirst

AA-

N/R

AA-

20

29,503

United States

10

U.S. Bancorp

AA-

A1

A+

19

402,529

United States

Statement Ratings current as of 12/31/14
*Statement Ratings current as of 10/31/14
**Statement Ratings current as of 9/30/14
***Statement Ratings current as of 6/30/14

Western Europe

Rank

Bank

Fitch

Moody’s

S&P

Total Score

Reporting Assets $mn

Country

1

KfW

AAA

Aaa

AAA

30

593,750

Germany

2

Zürcher Kantonalbank

AAA

Aaa

AAA

30

160,137

Switzerland

3

Landwirtschaftliche Rentenbank

AAA

Aaa

AAA

30

107,862

Germany

4

L-Bank

AAA

Aaa

AAA

30

84,680

Germany

5

Bank Nederlandse Gemeenten

AA+

Aaa

AA+

28

186,360

Netherlands

6

Nederlandse Waterschapsbank

N/R

Aaa

AA+

27.5

85,718

Netherlands

7

NRW.BANK

AAA

Aa1

AA-

26

172,459

Germany

8

Caisse des Dépôts et Consignations

AA

Aa1

AA

25

181,803

France

9

Banque et Caisse d’Epargne de l’Etat

N/R

Aa2

AA+

24.5

49,868

Luxembourg

10

Société de Financement Local (SFIL)

AA-

Aa2

AA

23

106,867

France

Statement Ratings current as of 12/31/14
*Statement Ratings current as of 10/31/14
**Statement Ratings current as of 9/30/14
***Statement Ratings current as of 6/30/14

Central & Eastern Europe

Rank

Bank

Fitch

Moody’s

S&P

Total Score

Reporting Assets $mn

Country

1

Komerční banka

A-

A2

A

14

41,747

Czech Republic

2

Česká spořitelna

A-

A2

A-

13

39,528

Czech Republic

3

Bank Pekao

A-

A2

BBB+

12

47,795

Poland

4

PKO Bank Polski

N/R

A2

BBB+

11

70,911

Poland

5

ING Bank Śląski

A-

A3

N/R

11

28,473

Poland

6

Bank Zachodni WBK

BBB+

A3

N/R

9.5

38,350

Poland

7

mBank

BBB-

Baa2

BBB

5

33,641

Poland

8

Banca Comercială Română

BBB

Ba1

N/R

0.5

16,715

Romania

Statement Ratings current as of 12/31/14
*Statement Ratings current as of 10/31/14
**Statement Ratings current as of 9/30/14
***Statement Ratings current as of 6/30/14

Latin America

Rank

Bank

Fitch

Moody’s

S&P

Total Score

Reporting Assets $mn

Country

1

BancoEstado

A+

Aa3

AA-

20

46,291

Chile

2

Banco de Chile

N/R

Aa3

A+

18.5

45,517

Chile

3

Banco Santander Chile

A+

Aa3

A

18

50,272

Chile

4

Banco de Crédito e Inversiones

A-

A1

A

15

39,297

Chile

5

HSBC México

A

A3

BBB+

12

40,444

Mexico

6

Scotiabank Perú

A-

A3

BBB+

11

15,742

Peru

7

Banobras

BBB+

A3

BBB+

10

38,871

Mexico

8

Banco de Crédito BCP

A-

Baa1

BBB+

10

38,744

Peru

9

Banco Nacional
de Comercio Exterior

BBB+

A3

BBB+

10

17,877

Mexico

10

Banco Santander (Mexico)

BBB+

A3

N/R

9.5

63,639

Mexico

Statement Ratings current as of 12/31/14
*Statement Ratings current as of 10/31/14
**Statement Ratings current as of 9/30/14
***Statement Ratings current as of 6/30/14

Asia

Rank

Bank

Fitch

Moody’s

S&P

Total Score

Reporting Assets $mn

Country

1

DBS Bank

AA-

Aa1

AA-

23

333,510

Singapore

2

Oversea-Chinese Banking Corp

AA-

Aa1

AA-

23

303,660

Singapore

3

United Overseas Bank

AA-

Aa1

AA-

23

232,147

Singapore

4

Hang Seng Bank

A+

Aa2

AA-

21

162,980

Hong Kong

5

China Development Bank

A+

Aa3

AA-

20

1,685,954

China

6

Agricultural Development Bank of China

A+

Aa3

AA-

20

513,517

China

7

Export-Import Bank of China

A+

Aa3

AA-

20

386,953

China

8

Korea Development Bank

AA-

Aa3

A+

20

252,231

South Korea

9

Industrial Bank of Korea

AA-

Aa3

A+

20

199,910

South Korea

10

Export-Import Bank of Korea (KEXIM)

AA-

Aa3

A+

20

66,952

South Korea

Statement Ratings current as of 12/31/14
*Statement Ratings current as of 10/31/14
**Statement Ratings current as of 9/30/14
***Statement Ratings current as of 6/30/14

Middle East & Africa

Rank

Bank

Fitch

Moody’s

S&P

Total Score

Reporting Assets $mn

Country

1

National Bank of Abu Dhabi

AA-

Aa3

AA-

21

102,409

UAE

2

Qatar National Bank

AA-

Aa3

A+

20

133,614

Qatar

3

National Bank of Kuwait

AA-

Aa3

A+

20

74,399

Kuwait

4

Samba Financial Group

A+

Aa3

A+

19

57,973

Saudi Arabia

5

National Commercial Bank

A+

A1

A+

18

115,967

Saudi Arabia

6

Al Rajhi Bank

A+

A1

A+

18

82,056

Saudi Arabia

7

Riyad Bank

A+

A1

A+

18

57,224

Saudi Arabia

8

Abu Dhabi Commercial Bank

A+

A1

A

17

55,553

UAE

9

Banque Saudi Fransi

A

Aa3

A

17

50,341

Saudi Arabia

10

SABB

A

Aa3

A

17

50,029

Saudi Arabia

Statement Ratings current as of 12/31/14
*Statement Ratings current as of 10/31/14
**Statement Ratings current as of 9/30/14
***Statement Ratings current as of 6/30/14

Australia & New Zealand

Rank

Bank

Fitch

Moody’s

S&P

Total Score

Reporting Assets $mn

Statement Date

Country

1

National Australia Bank

AA-

Aa2

AA-

22

773,062

9/30/14

Australia

2

Commonwealth Bank of Australia

AA-

Aa2

AA-

22

745,527

6/30/14

Australia

3

ANZ Group

AA-

Aa2

AA-

22

675,733

9/30/14

Australia

4

Westpac

AA-

Aa2

AA-

22

674,639

9/30/14

Australia

5

Kiwibank

AA

Aa3

A+

21

14,634

31/12/14

New Zealand

6

Suncorp Metway

A+

A1

A+

18

56,577

6/30/14

Australia

7

Bendigo and Adelaide Bank

A-

A2

A-

13

61,289

6/30/14

Australia

8

Bank of Queensland

A-

A3

A-

12

43,852

8/31/14

Australia

9

Macquarie

A-

A3

BBB

 10

143,504

3/31/15

Australia

10

ME Bank

N/R

A3

BBB+

9.5

16,838

6/30/14

Australia

Source for ratings: Fitch Ratings, Standard & Poor’s, Moody’s Investors Service
Source for Reporting Assets: Fitch Solutions

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