Safest Banks By Country 2015 - Global Finance Magazine

Global Finance’s country-by-country ranking of the safest banks in the world includes eight new country leaders.

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CHALLENGING FOR THE TOP SPOT

This year’s country-by-country rankings name the safest banks in 105 countries. Seven sub-Saharan African countries are included in this year’s list, compared with just five last year. CfC Stanbic is ranked as Kenya’s safest bank, and Rawbank is ranked as the safest bank in the Democratic Republic of the Congo, after receiving a Caa1 rating from Moody’s.

In Central and Eastern Europe, Bank BelVEB takes the prize in Belarus after Moody’s downgraded Belarusbank—last year’s safest bank—in April. Komerční banka is the safest bank in the Czech Republic replacing Česká spořitelna, which was downgraded by Fitch in May as part of a wider downgrade of the Erste Bank Group, which holds 99% of Česká spořitelna’s shares; and in Poland, Bank Pekao replaces PKO Bank Polski, which was downgraded two notches by Standard & Poor’s in June.

There are three new leaders in Western Europe. In Austria, Erste Group replaces Raiffeisen Bank International, which was downgraded by all three rating agencies during the first half of 2015. An upgrade from Moody’s gives Cassa di Risparmio di Parma e Piacenza (otherwise known as Cariparma) the top position in Italy; and Svenska Handelsbanken replaces Nordea in Sweden, following Nordea’s downgrade from Moody’s.

In Indonesia, Bank Internasional Indonesia replaces Bank Mandiri as the country’s safest bank, and in Latin America, Scotiabank Perú replaces Banco de Crédito BCP in Peru.

METHODOLOGY

Global Finance’srankings of the safest bank in each country is based on long-term foreign-currency credit ratings assigned by the three international rating agencies: Fitch Ratings, Moody’s and Standard & Poor’s. National scale ratings whereby an agency ranks banks within one country against each other, but not with reference to banks outside that country, are not used.

To be eligible for inclusion, a bank must be among the biggest 1,000 banks in the world, ranked by asset size. Effectively, this means that any bank with more than $650 million in assets is eligible.

This eligibility criteriondiffers from that used forGlobal Finance’ssafest global, emerging markets and commercial bank rankings, for which banks must be among the biggest 500 in the world. In the country rankings, banks do not need to hold at least two ratings to be included—a single rating from one of the three agencies is sufficient. For example, four of the seven African banks listed this year have only one rating.

When a bank has a single rating, an implied score for the second rating is calculated by taking the score for the actual rating and deducting one point, and an implied score for the third rating is calculated by deducting two points. (When a bank has two ratings, the implied third rating is calculated by taking the average of the two actual ratings and deducting one point.)

If there are several banks in a single country that hold the same ratings, the bank with the largest asset size is designated as the safest, in recognition of the strong positive correlation that exists between large asset size and high credit ratings.

Many of the banks considered for inclusion in the country-by-country rankings hold ratings in sub-investmentgrade territory: lower than BBB-. This is often the result of a low rating assigned to a bank’s home government.

Although the three rating agencies have adopted a more flexible approach to the relationship between bank ratings and sovereign ratings, in practice it is rare for a bank to be awarded a rating higher than that of its own government.

Global Finance’sscoring system begins with AAA, for which a score of 10 is awarded, down to BBB-, which receives one point. The next rating down, BB+, receives a score of -1, and so on.

Although awarding negative scores may seem strange, it enablesGlobal Financeto use a single system when ranking the strongest banks in the world and when ranking banks in countries where credit ratings are very low.

Our country-by-country ranking provides insight on a far larger range of countries, but there are countries that have no eligible rated banks. We have no banks listed for Laos or for Honduras, but the biggest gaps lie in sub-Saharan Africa and the Middle East. Much of sub-Saharan Africa remains unmapped by the rating agencies. In the Middle East, banks in Algeria, Iraq and Iran—all major economies—remain unrated.

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North America
Country	Bank	Fitch	Moody’s	S&P	Total Score	Reporting Assets $mn	Statement Date
Canada	TD Bank Group	AA-	Aa1	AA-	23	837,909	10/31/14
United States	AgriBank	AA-	Aa3	AA-	21	94,425	12/31/14

Western Europe
Country	Bank	Fitch	Moody’s	S&P	Total Score	Reporting Assets $mn	Statement Date
Andorra	Crèdit Andorrà	BBB	N/R	N/R	3	7,524	12/31/14
Austria	Erste Bank	BBB+	Baa2	BBB+	8	238,300	12/31/14
Belgium	KBC	A-	A2	A	14	256,302	12/31/14
Cyprus	Hellenic Bank	B-	Caa2	N/R	-22	9,168	12/31/14
Denmark	Danske Bank	A	A2	A	15	564,089	12/31/14
Finland	Pohjola Bank	A+	Aa3	AA-	20	61,555	12/31/14
France	Caisse des Dépôts et Consignations	AA	Aa1	AA	25	181,803	12/31/14
Germany	KfW	AAA	Aaa	AAA	30	593,750	12/31/14
Greece	National Bank of Greece	N/R	Caa3	SD	-30	140,177	12/31/14
Iceland	Íslandsbanki	BBB-	N/R	BBB-	1	7,181	12/31/14
Ireland	Bank of Ireland	BB+	Baa2	BBB-	2	157,582	12/31/14
Italy	Cariparma	N/R	A3	N/R	9	63,377	12/31/14
Liechtenstein	LGT Bank	N/R	Aa2	A+	20	31,031	12/31/14
Luxembourg	Banque et Caisse d’Epargne de l’Etat	N/R	Aa2	AA+	24.5	49,868	12/31/14
Malta	Bank of Valletta	BBB+	N/R	N/R	6	10,440	9/30/14
Netherlands	Bank Nederlandse Gemeenten	AA+	AAA	AA+	28	186,360	12/31/14
Norway	DNB	N/R	Aa2	A+	20	356,573	12/31/14
Portugal	Banco Santander Totta	BBB	Baa3	BB	1	50,435	12/31/14
Spain	Santander	A-	A3	BBB+	10	1,537,327	12/31/14
Sweden	Svenska Handelsbanken	AA-	Aa2	AA-	22	364,072	12/31/14
Switzerland	Zürcher Kantonalbank	AAA	Aaa	AAA	30	160,137	12/31/14
United Kingdom	HSBC	AA-	A1	A	18	2,634,139	12/31/14

Central & Eastern Europe
Country	Bank	Fitch	Moody’s	S&P	Total Score	Reporting Assets $mn	Statement Date
Albania	Credins Bank	N/R	B2	N/R	-18	1,055	12/31/14
Armenia	Ardshininvestbank	B+	B1	N/R	-13	771	12/31/14
Azerbaijan	International Bank of Azerbaijan	BB	Ba3	N/R	-8.5	11,727	12/31/14
Belarus	Bank BelVEB	B-	N/R	B-	-19	2,063	12/31/14
Bulgaria	Societe Generale Expressbank	BBB+	N/R	N/R	6	3,038	12/31/14
Croatia	Zagrebačka banka	BBB-	N/R	BB	-2.5	19,060	12/31/14
Czech Republic	Komerční banka	A-	A2	A	14	41,747	12/31/14
Georgia	Bank of Georgia	BB-	B1	BB-	-10	4,044	12/31/14
Hungary	OTP Bank	N/R	Ba2	BB	-7	42,044	12/31/14
Kazakhstan	Development Bank of Kazakhstan	BBB	Baa3	BBB	5	7,166	12/31/14
Latvia	Citadele Banka	N/R	B1	N/R	-15	3,454	12/31/14
Lithuania	Šiaulių bankas	N/R	Ba2	N/R	-9	1,984	12/31/14
Poland	Bank Pekao	A-	A2	BBB+	12	47,795	12/31/14
Romania	BRD – Groupe Société Générale	BBB+	Ba1	N/R	2	12,443	31/12/14
Russia	Vnesheconombank	BBB-	Ba1	BB+	-1	69,071	12/31/14
Slovak Republic	VÚB banka	N/R	A2	N/R	12	14,156	12/31/14
Slovenia	Banka Koper	BBB	N/R	N/R	3	2,799	12/31/14
Turkey	Türk Ekonomi Bankası	BBB	Baa3	N/R	3.5	28,111	12/31/14
Ukraine	Ukrsotsbank	CCC	N/R	N/R	-24	3,041	12/31/14
Uzbekistan	Ipoteka Bank	N/R	B2	B+	-14.5	1,347	12/31/14

Latin America
Country	Bank	Fitch	Moody’s	S&P	Total Score	Reporting Assets $mn	Statement Date
Argentina	Banco Macro	CCC	Caa2	N/R	-23.5	8,813	12/31/14
Bermuda	Butterfield Bank	A-	A3	N/R	11	9,858	12/31/14
Bolivia	Banco Mercantil Santa Cruz	N/R	B1	BB-	-11.5	3,183	3/31/15
Brazil	Banco Bradesco	BBB+	Baa3	BBB-	5	350,373	12/31/14
Chile	BancoEstado	A+	Aa3	AA-	20	46,291	12/31/14
Colombia	BBVA Colombia	BBB+	Baa2	N/R	6.5	17,361	12/31/14
Costa Rica	Banco Nacional de Costa Rica	BB+	Ba2	N/R	-5.5	10,247	12/31/14
Dominican Republic	Banco de Reservas	B+	B2	N/R	-14.5	7,973	12/31/14
Ecuador	Banco Pichincha	B	N/R	N/R	-18	14,115	12/31/14
El Salvador	Banco Agrícola	BB	Ba2	B+	-8	3,954	3/31/15
Guatemala	Banco Industrial	BB	Ba2	BB	-6	10,358	12/31/14
Jamaica	National Commercial Bank Jamaica	B-	N/R	B	-17.5	4,438	9/30/14
Mexico	HSBC México	A	A3	BBB+	12	40,444	12/31/14
Panama	Bladex	BBB+	Baa2	BBB	7	8,205	12/31/14
Paraguay	Banco Continental	N/R	Ba2	BB	-16	3,507	3/31/15
Peru	Scotiabank Perú	A-	A3	BBB+	11	15,742	12/31/14
Trinidad and Tobago	First Citizens Bank	N/R	Baa2	BBB+	6.5	5,619	3/31/15
Uruguay	Banco de la República Oriental del Uruguay	N/R	Baa2	N/R	3	15,180	3/31/15
Venezuela	Banesco Banco Universal	CCC	N/R	N/R	-24	60,661	12/31/14

Asia
Country	Bank	Fitch	Moody’s	S&P	Total Score	Reporting Assets $mn	Statement Date
Brunei	Baiduri Bank**	N/R	N/R	BBB+	6	1,429	12/31/13
Cambodia	Acleda Bank**	N/R	N/R	B	-18	3,140	12/31/14
China	China Development Bank	A+	Aa3	AA-	20	1,685,954	12/31/14
Hong Kong	Hang Seng Bank	A+	Aa2	AA-	21	162,980	12/31/14
India	State Bank of India	BBB-	Baa3	BBB-	3	431,391	3/31/15
Indonesia	Bank Internasional Indonesia	BBB	N/R	N/R	3	11,521	12/31/14
Japan	Bank of Tokyo-Mitsubishi UFJ	A	A1	A+	17	1,752,159	3/31/15
South Korea	Korea Development Bank	AA-	Aa3	A+	20	252,231	12/31/14
Macao	Tai Fung Bank	BBB+	N/R	N/R	6	10,873	12/31/14
Malaysia	Maybank	A-	A3	A-	12	183,205	12/31/14
Mauritius	Mauritius Commercial Bank	BBB-	Baa3	N/R	2	7,966	6/30/14
Mongolia	Trade and Development Bank of Mongolia	N/R	B3	B	-17.5	2,868	12/31/14
Pakistan	Habib Bank	N/R	Caa1	N/R	-24	18,585	12/31/14
Papua and New Guinea	Bank South Pacific**	N/R	N/R	B+	-15	1,670	12/31/14
Philippines	Metrobank	BBB-	Baa2	N/R	3.5	35,963	12/31/14
Singapore	DBS Bank	AA-	Aa1	AA-	23	333,510	12/31/14
Sri Lanka	National Savings Bank	BB-	N/R	B+	-11.5	6,004	12/31/14
Taiwan	Bank of Taiwan	N/R	Aa3	A+	18.5	146,756	12/31/14
Thailand	Bank of Ayudhya	A-	Baa1	BBB+	10	36,837	12/31/14
Vietnam	VietinBank	B+	B2	BB-	-12	31,118	12/31/14

Middle East
Country	Bank	Fitch	Moody’s	S&P	Total Score	Reporting Assets $mn	Statement Date
Bahrain	Gulf International Bank	A	A3	BBB+	12	21,300	12/31/14
Egypt	National Bank of Egypt	B	Caa1	B-	-18	63,886	6/30/14
Israel	Bank Hapoalim	A-	A2	A-	13	104,858	12/31/14
Jordan	Arab Bank	BBB-	B2	BB-	-7	48,152	12/31/14
Kuwait	National Bank of Kuwait	AA-	Aa3	A+	20	74,399	12/31/14
Lebanon	Bank Audi	B	B2	B-	-16	41,961	12/31/14
Morocco	Attijariwafa Bank	BB+	N/R	BB	-5.5	44,439	12/31/14
Oman	BankMuscat	A-	A1	N/R	14	25,301	12/31/14
Qatar	Qatar National Bank	AA-	Aa3	A+	20	133,614	12/31/14
Saudi Arabia	Samba Financial Group	A+	Aa3	A+	19	57,973	12/31/14
Tunisia	Arab Tunisian Bank	BB	B1	B+	-10	2,970	12/31/13
UAE	National Bank of Abu Dhabi	AA-	Aa3	AA-	21	102,409	12/31/14

Sub-Saharan Africa
Country	Bank	Fitch	Moody’s	S&P	Total Score	Reporting Assets $mn	Statement Date
Angola	Banco Angolano de Investimentos	B+	Ba3	N/R	-11.5	10,704	12/31/14
DR Congo	Rawbank	N/R	Caa1	N/R	-24	1,593	6/30/14
Ghana	GCB Bank	N/R	Caa1	N/R	-24	1,325	12/31/14
Kenya	CfC Stanbic Bank	BB-	N/R	N/R	-12	1,893	12/31/14
Nigeria	FirstBank	B+	N/R	B+	-13	24,350	12/31/14
South Africa	Standard Bank	BBB	Baa2	BBB-	5	97,674	12/31/14
Togo	Ecobank Transnational	B	N/R	N/R	-18	24,244	12/31/14

Australia & New Zealand
Country	Bank	Fitch	Moody’s	S&P	Total Score	Reporting Assets $mn	Statement Date
Australia	National Australia Bank	AA-	Aa2	AA-	22	773,062	9/30/14
New Zealand	Kiwibank	AA	Aa3	A+	21	14,634	31/12/14

Souce for Reporting Assets: Fitch Solutions, except for ** bank’s financial reports Ratings current as of August 14, 2015

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CHALLENGING FOR THE TOP SPOT

METHODOLOGY

NEXT PAGE |SAFEST BANKS BY COUNTRY LISTING

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North America

Western Europe

Central & Eastern Europe

Latin America

Asia

Middle East

Sub-Saharan Africa

Australia & New Zealand