World’s Safest Banks 2016: Emerging Markets Top 50

South Korean upgrades push China’s top banks down the ranking.


The safest three emerging markets banks are South Korean, following ratings upgrades by Moody’s and S&P. Korea Development Bank, Export-Import Bank of Korea and Industrial Bank of Korea now have at least one AA and one AA- rating each, which puts the South Korean trio ahead of National Bank of Abu Dhabi, which had led the ranking but now falls to fourth position, despite holding the same ratings as last year.

The Korean bank upgrades followed S&P’s decisions to raise its rating on the South Korean government in September 2015 and in August 2016, and Moody’s upgrade of the South Korean government in December 2015. The upgrades applied primarily to government-related banks—some private-sector South Korean banks hold the same ratings as they did last year.

Eight South Korean banks are rated highly enough to be included in this ranking. That’s one fewer than last year, and a result of the merger of Korea Exchange Bank and Hana Bank.

The other big change to the emerging markets rankings is the demise of Saudi banks. Again, this has been driven by changes to sovereign ratings. S&P downgraded the government of Saudi Arabia by three notches in the past year, and Fitch and Moody’s downgraded it by one notch in the spring. As a result, the number of Saudi banks in the Safest 50 Emerging Markets Banks has fallen to three from nine. National Commercial Bank, Al Rajhi Bank and Samba Financial Group are the three that remain.

Saudi banks have been replaced in the rankings by those from Kuwait and Qatar, which retained their ratings. Banks in the UAE also retained their ratings over the past year.

The nine new entries to this year’s list comprise six Qatari banks, which in some cases were excluded in previous years because of insufficient asset size, and three from Kuwait. Some Kuwaiti banks have benefited from upgrades over the past year.

Others falling off the list include Oman’s Bank Muscat (owing to rating downgrades) and Czechoslovakia’s eská spoitelna. The former was downgraded; the latter kept its ratings but they are no longer sufficient to qualify. This year, banks need a minimum score of 14 (equating to two A ratings and one A-) to be included in the Safest 50, whereas last year, the 50th-ranked bank, Emirates NBD, had 12.5 points. Following an upgrade from Moody’s, this year Emirates NBD, based in Dubai, is ranked 41st.

Banks from four GCC states—Kuwait, Qatar, Saudi Arabia and the UAE—account for half of the 50 Safest Emerging Markets Banks. Asian banks account for 20: eight each from China and South Korea and four from Taiwan. Chilean banks are the only representatives from South and Central America. Komerní banka, from the Czech Republic, is the only representative from Central or Eastern Europe or the former Soviet Union.

The criteria used to compile Global Finance’s ranking of the safest emerging markets banks are the same as those used to compile the global ranking.


THE SAFEST 50 EMERGING MARKETS BANKS

Rank

Group Name

Country

Ratings

Total Score

Assets

$ mn

Statement

Date

Fitch

Moody’s

S&P

1

Korea Development Bank

South Korea

AA-

Aa2

AA

23

263,959

12/31/15

2

Export-Import Bank of Korea

South Korea

AA-

Aa2

AA

23

70,369

12/31/15

3

Industrial Bank of Korea

South Korea

AA-

Aa2

AA-

22

204,557

12/31/15

4

National Bank of Abu Dhabi

UAE

AA-

Aa3

AA-

21

110,705

12/31/15

5

China Development Bank

China

A+

Aa3

AA-

20

1,685,954

12/31/15

6

Agricultural Development Bank of China

China

A+

Aa3

AA-

20

513,517

12/31/14

7

Export-Import Bank of China

China

A+

Aa3

AA-

20

386,983

12/31/14

8

Qatar National Bank

Qatar

AA-

Aa3

A+

20

147,969

12/31/15

9

National Bank of Kuwait

Kuwait

AA-

Aa3

A+

20

77,752

12/31/15

10

Banco del Estado de Chile

Chile

A+

Aa3

AA-

20

46,017

12/31/15

11

Bank of Taiwan

Taiwan

N/R

Aa3

A+

18.5

149,068

6/30/15

12

Banco de Chile

Chile

N/R

Aa3

A+

18.5

44,162

12/31/15

13

Shinhan Bank

South Korea

A

Aa3

A+

18

243,077

12/31/15

14

Banco Santander Chile

Chile

A+

Aa3

A

18

48,992

12/31/15

15

KB Kookmin Bank

South Korea

A

A1

A+

17

247,572

12/31/15

16

Abu Dhabi Commercial Bank

UAE

A+

A1

A

17

62,156

12/31/15

17

Union National Bank

UAE

A+

A1

N/R

17

27,743

12/31/15

18

Al Hilal Bank

UAE

A+

A1

N/R

17

11,734

12/31/15

19

Industrial and Commercial Bank of China

China

A

A1

A

16

3,421,363

12/31/15

20

China Construction Bank

China

A

A1

A

16

2,826,695

12/31/15

21

Agricultural Bank of China

China

A

A1

A

16

2,740,721

12/31/15

22

Bank of China

China

A

A1

A

16

2,590,402

12/31/15

23

NongHyup Bank

South Korea

A-

A1

A+

16

197,800

12/31/15

24

First Gulf Bank

UAE

A+

A2

A

16

61,946

12/31/15

25

Kuwait Finance House

Kuwait

A+

A1

A-

16

54,454

12/31/15

26

Mega International Commercial Bank

Taiwan

N/R

A1

A

15.5

94,035

12/31/15

27

Land Bank of Taiwan

Taiwan

N/R

Aa3

A-

15.5

75,649

12/31/15

28

Abu Dhabi Islamic Bank

UAE

A+

A2

N/R

15.5

32,234

12/31/15

29

Al Ahli Bank of Kuwait (ABK)

Kuwait

A+

A2

N/R

15.5

14,363

12/31/15

30

Ahli United Bank (Kuwait)

Kuwait

A+

A2

N/R

15.5

12,864

12/31/15

31

Barwa Bank

Qatar

A+

A2

N/R

15.5

12,418

12/31/15

32

Qatar International Islamic Bank

Qatar

A+

A2

N/R

15.5

11,137

12/31/15

33

Ahli Bank

Qatar

A+

A2

N/R

15.5

8,873

12/31/15

34

International Bank of Qatar

Qatar

A+

A2

N/R

15.5

8,766

12/31/15

35

KEB Hana Bank

South Korea

A-

A1

A

15

249,385

12/31/15

36

Banco de Crédito e Inversiones

Chile

A-

A1

A

15

40,683

12/31/15

37

Doha Bank

Qatar

A+

A2

A-

15

22,887

12/31/15

38

Gulf Bank

Kuwait

A+

A2

A-

15

17,917

12/31/15

39

Bank of Communications

China

A

A2

A-

14

1,102,266

12/31/15

40

Woori Bank

South Korea

A-

A2

A

14

248,920

12/31/15

41

National Commercial Bank

Saudi Arabia

A

A1

BBB+

14

119,824

12/31/15

42

Emirates NBD

UAE

A+

A3

N/R

14

110,704

12/31/15

43

CTBC Bank

Taiwan

A

A2

A-

14

107,140

12/31/15

44

Al Rajhi Bank

Saudi Arabia

A

A1

BBB+

14

84,165

12/31/15

45

Samba Financial Group

Saudi Arabia

A

A1

BBB+

14

62,731

12/31/15

46

Komerní banka

Czech Republic

A-

A2

A

14

35,915

12/31/15

47

Qatar Islamic Bank

Qatar

A+

N/R

A-

14

34,898

12/31/15

48

Commercial Bank of Qatar

Qatar

A+

A2

BBB+

14

33,907

12/31/15

49

Al Khalij

Qatar

A+

A3

N/R

14

15,559

12/31/15

50

Commercial Bank of Kuwait

Kuwait

A+

A3

N/R

14

13,303

12/31/15

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