Top 50 Safest Banks In Europe 2018

Regulatory strictures have forced European banks to shape up, with positive results for many.


Throughout 2018, the European banking sector continued to restructure and adopt regulatory reforms. Many institutions exhibit improved stability as a result, which resulted in rating-agency upgrades and some shifts in our Europe Top 50 rankings.

Banks near the top of the 50 Safest European Banks rankings remain largely unchanged. However, improved credit fundamentals for a number of institutions brought on rating agency upgrades that are reflected in our 2018 rankings.

Strongly rated Swedish banks Swedbank and SEB rose to 15th and 19th, respectively, following upgrades from Moody’s Investors Service. Moody’s also upgraded BNP Paribas and Societe Generale in France after the banks each announced plans to issue around €10 billion ($11.5 billion) in debt to increase loss-absorbing capacity. Consequently, BNP rose to 27th and Societe Generale rose to 35th. Also, Groupe BPCE and banking subsidiary Natixis rose five spots each following upgrades, also from Moody’s.

Some European banks have made progress shifting their balance sheets to reduce problem loans and initiated strategies to increase profitability. Their improved risk profiles, in many cases, have been the result of regulatory requirements that have improved bank funding and boosted capitalization.

In response to the EU’s Bank Recovery and Resolution Directive, for example, banks have implemented plans involving the issuance of subordinated debt that complies with a minimum threshold that could be converted to equity or written down—providing greater loss protection to senior creditors in a stress scenario. Compliance is required beginning in January 2019. Certain jurisdictions are taking additional steps to improve the resilience of the banking sector, and regulatory stress tests examining a range of factors under adverse scenarios continue to contribute to the sector’s improved operational and financial profile.

German banks are well represented, with seven entities among the European Safest 50. The German banking sector is highly fragmented, with hundreds of small retail banks. For example, DZ bank is the central institution for the Genossenschaftliche Finanzgruppe, which includes Volksbanken and Raiffeisenbanken; while Sparkassen-Finanzgruppe is the central institution for the Landesbanken and Sparkassen. Among the Swiss banks, UBS rose to 22nd following an upgrade by Fitch. The bank continues to restructure its operations, particularly its investment bank, to achieve greater earnings stability.

UK banks HSBC Holdings and Standard Chartered face many challenges, particularly with achieving revenue growth and implementing cost efficiencies, illustrating the difficulty of managing large global franchises. Restructuring continues as the Bank of England has demanded that large banking groups ring-fence their retail operations through the creation of new bank subsidiaries. Furthermore, the impact of Brexit—particularly a “hard” Brexit—could constrain profitability. Downgrades from Moody’s sent both HSBC and Standard Chartered down in the rankings, with HSBC falling three spots. Standard Chartered was also impacted by a clarification regarding holding company versus lead bank (see methodology for details), falling to 43rd.

Last year, a score of 12.5 was enough to get on the list of the European Safest 50. This year, due to upgrades, the required point threshold rose to 14 points. Consequently, KBC Group, Belfius Bank, Nykredit Realkredit and La Banque Postale missed the cut; while ING Bank Slaski in Poland benefited from a Moody’s upgrade, earning a place at 48th.

Europe’s Top 50 Safest Banks

Rank

Company Name

Country

Fitch

Moody’s

S&P

Total Score

Assets ($ Mil.)

Statement Date

1

KfW

Germany

AAA

Aaa

AAA

30

566,486

31-Dec-2017

2

Zuercher Kantonalbank

Switzerland

AAA

Aaa

AAA

30

167,945

31-Dec-2017

3

Landwirtschaftliche Rentenbank

Germany

AAA

Aaa

AAA

30

108,711

31-Dec-2017

4

L-Bank

Germany

AAA

Aaa

AAA

30

84,640

31-Dec-2017

5

BNG Bank N.V.

Netherlands

AA+

Aaa

AAA

29

167,932

31-Dec-2017

6

Nederlandse Waterschapsbank

Netherlands

NR

Aaa

AAA

29

101,924

30-Jun-2017

7

Kommunalbanken

Norway

NR

Aaa

AAA

29

47,738

31-Dec-2017

8

NRW.BANK

Germany

AAA

Aa1

AA—

26

175,242

31-Dec-2017

9

Banque et Caisse d’Epargne de L’Etat

Luxembourg

NR

Aa2

AA+

24.5

54,305

31-Dec-2017

10

Caisse Des Depots et Consignations

France

AA

Aa2

AA

24

207,623

31-Dec-2017

11

DZ BANK Deutsche Zentral-Genossenschaftsbank

Germany

AA—

Aa1

AA—

23

606,359

31-Dec-2017

12

Svanska Handelsbanken

Sweden

AA

Aa2

AA—

23

336,116

31-Dec-2017

13

Deutsche Apotheker- und Aerztebank

Germany

AA—

Aa1

AA—

23

49,583

31-Dec-2017

14

Banque Cantonale Vaudoise

Switzerland

NR

Aa2

AA

23

46,602

31-Dec-2017

15

Swedbank

Sweden

AA—

Aa2

AA—

22

268,778

31-Dec-2017

16

SFIL

France

AA—

Aa3

AA

22

71,010

31-Dec-2017

17

Banque Pictet & Cie

Switzerland

AA—

Aa2

NR

21.5

29,711

31-Dec-2016

18

Nordea Bank

Sweden

AA—

Aa3

AA—

21

697,527

31-Dec-2017

19

SEB

Sweden

AA—

Aa2

A+

21

310,925

31-Dec-2017

20

HSBC France

France

AA—

Aa3

AA—

21

200,935

31-Dec-2017

21

Sparkassen-Finanzgruppe (Sparkassen)

Germany

A+

Aa2

NR

20

1,235,669

31-Dec-2017

22

UBS

Switzerland

AA—

Aa3

A+

20

939,089

31-Dec-2017

23

Rabobank

Netherlands

AA—

Aa3

A+

20

723,167

31-Dec-2017

24

DNB Bank

Norway

NR

Aa2

A+

20

326,832

31-Dec-2017

25

OP Corporate Bank

Finland

NR

Aa3

AA—

20

73,635

31-Dec-2017

26

LGT Bank

Liechtenstein

NR

Aa3

A+

18.5

42,708

31-Dec-2017

27

BNP Paribas 

France

A+

Aa3

A

18

2,350,929

31-Dec-2017

28

Banque Federative du Credit Mutuel (BCFM)

France

A+

Aa3

A

18

742,605

31-Dec-2017

29

HSBC Holdings

United Kingdom

AA—

A2

A

17

2,521,771

31-Dec-2017

30

Credit Agricole

France 

A+

A1

A

17

2,114,568

31-Dec-2017

31

ABN AMRO Bank

Netherlands

A+

A1

A

17

471,530

31-Dec-2017

32

BNP Paribas Fortis

Belgium

A+

A1

A

17

331,311

31-Dec-2017

33

Nationwide Building Society

United Kingdom

A

Aa3

A

17

305,263

30-Sep-2017

34

BGL BNP Paribas

Luxembourg

A+

A1

A

17

59,522

31-Dec-2017

35

Societe Generale

France

A

A1

A

16

1,529,261

31-Dec-2017

36

Groupe BPCE

France

A

A1

A

16

1,510938

31-Dec-2017

37

Natixis

France

A

A1

A

16

623,620

31-Dec-2017

38

Danske Bank

Denmark

A

A1

A

16

570,183

31-Dec-2017

39

SBAB Bank

Sweden

NR

A1

A

15.5

50,793

31-Dec-2017

40

Lansforsakringar Bank

Sweden

NR

A1

A

15.5

38,381

31-Dec-2017

41

EFG Bank

Switzerland

A

A1

NR

15.5

30,971

31-Dec-2017

42

Banco Santander

Spain

A—

A2

A

14

1,732,154

31-Dec-2017

43

Standard Chartered

United Kingdom

A+

A2

BBB+

14

663,752

31-Dec-2017

44

Erste Group Bank

Austria

A—

A2

A

14

264,637

31-Dec-2017

45

Ceska Sporitelna

Czech Republic

A—

A2

A

14

62,431

31-Dec-2017

46

Coventry Building Society

United Kingdom

A

A2

NR

14

57,522

31-Dec-2017

47

Komercni Banka

Czech Republic

A—

A2

A

14

47,158

31-Dec-2017

48

ING Bank Slaski

Poland

A

A2

NR

14

36,197

31-Dec-2017

49

SpareBank 1 SR-Bank

Norway

A—

A1

NR

14

26,401

31-Dec-2017

50

Banque Palatine

France

A

A2

NR

14

17,711

31-Dec-2017

Asset figures from Fitch, Moody’s, and company reports. Ratings valid as of Aug. 17, 2018.

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