Almost one in four countries experienced a change of their Safest Bank in 2018, as winners were rewarded for improved financial profiles, higher ratings and asset growth.

Author: David Sanders

Which banks are their country’s safest? Ratings fluctuations—sparked variously by macroeconomic turmoil, political upheavals and market shifts—reshuffled the deck this year such that 25 banks, almost one in four, fell out of our 2018 Country Winners group. That compares with turnover of just 13 institutions last year. Our universe covers 106 countries, unchanged year-over-year, but including a new entrant, Stanbic Bank of Uganda. 

For the World’s Safest Banks by Country rankings, we consider the largest 1,000 banks globally by assets, rather than the top 500 as in most of our other rankings. Furthermore, only one agency rating is required for eligibility. Consequently, any rating fluctuation and any decision by an agency to initiate coverage can result in significant changes compared with the prior year. 

Among notable shifts in fortune, Austria’s Erste Group improved its financial profile, prompting a Moody’s upgrade and returning it to the top spot, which it held in 2016, replacing BAWAG Bank. In Latin America, HSBC Mexico exhibited better operating performance, earning a Moody’s upgrade and replacing Banobras. In Panama, Banco General added a Moody’s rating, which tied it with 2017 incumbent Bladex—but it won the country ranking due to its larger asset size, an important element of our methodology. Size was the decisive factor in Bulgaria as well, where United Bulgarian Bank edged out Societe Generale Expressbank; in Ukraine, where CB Privatbank replaced Alfa-Bank; and in Australia, where Commonwealth Bank of Australia was ranked ahead of ANZ Group by virtue of a larger balance sheet. 

Thanks to an initial rating by Moody’s, BRAC Bank improved, and replaced City Bank in Bangladesh. The Indonesian banking sector has stabilized, and Moody’s upgraded a number of banks, pushing Bank Central Asia to the top spot ahead of last year’s winner, Maybank Indonesia, which doesn’t carry a Moody’s rating. 

Latin America and Central & Eastern Europe displayed greater fluctuations in rankings than any other region, based on our country-winner segmentation. These developing- and emerging-market economies and their banking systems are vulnerable to geopolitical turmoil and currency instability and frequently display a lack of resilience in times of global financial stress and volatility in global markets. The significant economic and financial stress and associated currency crisis in Turkey in 2018 is an example of this heightened financial sensitivity and how these factors can destabilize year-over-year rankings. This year’s winner, Yapi ve Kredi Bankasi, has a significantly lower score (-8) than the winner last year, Turkiye Garanti Bankasi (-3).


WORLD'S SAFEST BANKS 2018 — North America

Country

Company Name

Fitch

Moody’s

S&P

Total Score

Assets ($ Mil.)

Statement Date

Canada

TD Bank Group

AA—

Aa1

AA—

23

1,012,760

30-Apr-2018

United States

AgriBank

AA—

Aa3

AA—

21

104,500

31-Dec-2017


Latin America & The Caribbean

Argentina

Banco Santander Rio

B+

Ba3

NR

—11.5

17,685

31-Dec-2017

Bermuda

Butterfield Bank

BBB

A3

BBB+

9

10,779

31-Dec-2017

Bolivia

Banco Mercantil Santa Cruz

NR

B1

BB—

       —11.5

4,975

31-Dec-2017

Brazil

Itau Unibanco Holding

BB

Ba3

BB—

—8

454,588

31-Dec-2017

Chile

Banco del Estado de Chile

A

A1

A+

17

61,588

31-Dec-2017

Colombia

BBVA Colombia

BBB+

Baa2

NR

6.5

19,541

31-Dec-2017

Costa Rica

Credomatic International 

BBB

NR

BB+

0.5

15,864

31-Mar-2017

Dominican Republic

Banco de Reserbas de la Republica Dominicana

BB—

B1

NR

—7

9,615

31-Dec-2017

Ecuador

Banco Pichincha

B

NR

NR

—18

12,524

31-Dec-2017

El Salvador

Banco Agricola

B

B1

B—

—15

4,343

31-Dec-2017

Guatemala

Banco Industrial

BB

Ba2

BB—

—7

13,693

31-Dec-2017

Honduras

Inversiones Atlantida

B

NR

B+

—14.5

3,498

30-Jun-2017

Jamaica

National Commercial Bank Jamaca

B

NR

B

—16

5,616

30-Sept-2017

Mexico

HSBC Mexico

A

Baa1

BBB+

11

36,028

31-Dec-2017

Panama

Banco General

BBB+

Baa2

BBB

7

17,572

31-Dec-2017

Paraguay

Banco Regional

NR

Ba2

BB

—7

2,621

31-Dec-2017

Peru

Scotiabank Peru

A—

A3

BBB+

11

18,762

31-Dec-2017

Trinidad and Tobago

Republic Bank

NR

NR

BBB

3

10,236

31-Dec-2017

Uruguay

Banco de la Republica Oriental del Uruguay

NR

Baa2

NR

3

16,803

31-Dec-2017

Venezuela

Banesco Banco Universal

CC

NR

NR

—36

215,543

31-Dec-2016


Western Europe

Andorra

Crèdit Andorrà

BBB

NR

NR

2

6,548

31-Dec-2017

Austria

Erste Group Bank

A—

A2

A

14

264,637

31-Dec-2017

Belgium

BNP Paribas Fortis

A+

A1

A

14

331,311

31-Dec-2017

Cyprus

RCB Bank

NR

B1

BB—

—11.5

9,16

31-Dec-2016

Denmark

Danske Bank

A

A1

A

16

570,183

31-Dec-2017

Finland

OP Corporate Bank

NR

Aa3

AA—

20

73,635

31-Dec-2017

France

Caisse des Dépôts et Consignations

AA

Aa2

AA

24

207,623

12/31/14

Germany

KfW

AAA

Aaa

AAA

30

566,486

31-Dec-2017

Greece

Piraeus Bank

NR

Caa2

B—

—22

80,853

31-Dec-2017

Iceland

Íslandsbanki

BBB

NR

BBB+

6.5

9,920

31-Dec-2017

Ireland

Ulster Bank Ireland

BBB

Baa1

BBB+

8

36,276

31-Dec-2017

Italy

Credit Agricole Cariparma

NR

A3

NR

9

79,365

31-Dec-2017

Liechtenstein

Liechtensteinische Landesbank

NR

Aa2

NR

21

20,538

31-Dec-2017

Luxembourg

Banque et Caisse d’Epargne de l’Etat

NR

Aa2

AA+

24.5

54,305

31-Dec-2017

Malta

Bank of Valletta

BBB

NR

BBB

5

14,176

31-Dec-2017

Netherlands

Bank Nederlandse Gemeenten

AA+

Aaa

AAA

29

167,932

31-Dec-2017

Norway

Kommunalbanken

NR

Aaa

AAA

29

47,738

31-Dec-2017

Portugal

Banco Santander Totta

BBB+

Baa3

BBB—

5

60,735

31-Dec-2017

Spain

Banco Santander

A—

A2

A

14

1,732,154

31-Dec-2017

Sweden

Svenska Handelsbanken

AA

Aa2

AA—

23

336,116

31-Dec-2017

Switzerland

Zürcher Kantonalbank

AAA

Aaa

AAA

30

167,945

31-Dec-2017

United Kingdom

HSBC Holdings

AA—

A2

A

17

2,521,771

31-Dec-2017


Central, Eastern Europe and Former Soviet Union

Armenia

Ardshinbank

B+

B2

NR

—14.5

1,174

31-Dec-2017

Azerbaijan

Kapital Bank

NR

Ba3

BB—

—10

1,623

31-Dec-2016

Balarus

Development Bank of the Republic of Belarus

B

NR

B

—16

3,115

31-Dec-2017

Bulgaria

United Bulgarian Bank

A—

NR

NR

9

4,546

31-Dec-2017

Croatia

Zagrebacka Banka

BBB—

NR

BB+

—1

20,239

31-Dec-2017

Czech Republic

Ceska Sporitelna

A—

A2

A

14

62,431

31-Dec-2017

Georgia

TBC Bank

BB—

Ba3

NR

—10

4,991

31-Dec-2017

Hungary

Erste Bank Hungary

BBB

Baa3

NR

3.5

8,574

31-Dec-2017

Kazakhstan

Development Bank of Kazakhstan

BBB—

Baa3

BB+

1

7,714

31-Dec-2017

Latvia

SC Citadele Banka

NR

Ba2

NR

—9

3,977

31-Dec-2017

Lithuania

Siauliu Bankas

NR

Baa3

NR

0

2,439

31-Dec-2017

Poland

ING Bank Salski

A

A2

NR

14

36,197

31-Dec-2017

Romania

Banca Comerciala Romana

BBB+

Baa3

NR

5

18,169

31-Dec-2017

Russia

Vnesheconombank

BBB—

NR

BBB—

2

58,611

31-Dec-2017

Slovak Republic

Slovenska Sporitelna

A—

A2

NR

12.5

19,600

31-Dec-2017

Slovenia

Banka Intesa Sanpaolo 

BBB—

NR

NR

0

2,876

31-Dec-2017

Turkey

Yapi ve Kredi Bankasi

BB

Ba3

BB—

—8

84,779

31-Dec-2017

Ukraine

CB Privatbank

B—

NR

NR

—21

9,081

31-Dec-2017

Uzbekistan

Asaka Bank

B+

B2

NR

—14.5

2,905

31-Dec-2017


Asia

Bangladesh

BRAC Bank

NR

B1

B+

—13

3,722

31-Dec-2017

Brunei

Bank Islam Brunei Darussalam

NR

NR

A—

9

6,528

31-Dec-2016

Cambodia

ACLEDA Bank

NR

NR

B

—18

4,665

31-Dec-2016

China

China Development Bank

A+

A1

A+

18

2,450,812

31-Dec-2017

Hong Kong

Hang Seng Bank

A+

Aa3

AA—

20

189,201

31-Dec-2017

India

State Bank of India

BBB—

Baa2

BBB—

4

555,998

31-Mar-2018

Indonesia

Bank Central Asia

BBB

Baa2

NR

5

55,382

31-Dec-2017

Japan

The Shizuoka Bank

A

A1

A

16

108,452

31-Mar-2018

Malaysia

Maybank

A—

A3

A—

12

188,405

31-Dec-2017

Mongolia

Trade and Development Bank of Mongolia

NR

Caa1

B—

—20.5

2,830

31-Dec-2017

Pakistan

Habib Bank

NR

Caa1

NR

—24

24,324

31-Dec-2017

Papua and New Guinea

Bank of South Pacific

NR

NR

B

—18

6,798

31-Dec-2017

Philippines

BDO Unibank

BBB—

Baa2

NR

3.5

53,444

31-Dec-2017

Singapore

DBS Bank

AA—

Aa1

AA—

23

387,337

31-Dec-2017

South Korea

Korea Development Bank

AA—

Aa2

AA

23

246,231

31-Dec-2017

Sri Lanka

National Savings Bank

B+

NR

B+

—13

6,665

31-Dec-2017

Taiwan 

Bank of Taiwan

NR

Aa3

A+

18.5

165,621

31-Dec-2017

Thailand

Bank of Ayudhya

A—

Baa1

BBB+

10

63,957

31-Dec-2017

Vietnam

Vietnam Bank for Industry and Trade

BB—

B1

BB—

—10

48,832

31-Dec-2017


Middle East

Bahrain

Gulf International Bank

BBB+

Baa1

NR

8

25,471

31-Dec-2017

Egypt

Commercial International Bank (Egypt)

B

Caa1

B

—17

16,579

31-Dec-2017

Israel

Bank Hapoalim

A

A2

A

14

131,071

31-Dec-2017

Jordan

Arab Bank

BB

B2

B+

—11

34,312

31-Dec-2017

Kuwait

National Bank of Kuwait

AA—

Aa3

A+

20

86,279

31-Dec-2017

Lebanon

Bank Audi

B—

B3

B—

—18

43,752

31-Dec-2017

Morocco

BMCE Bank

BB+

Ba1

NR

—4

33,509

31-Dec-2017

Oman

HSBC Bank Oman

BBB

Baa3

NR

3.5

6,070

31-Dec-2017

Qatar

Qatar National Bank

A+

Aa3

A

18

222,824

31-Dec-2017

Saudi Arabia

The National Commercial Bank

A—

A1

BBB+

13

118,364

31-Dec-2017

Tunisia

Arab Tunisian Bank

BB—

B3

B

—14

2,577

31-Dec-2017

UAE

First Abu Dhabi Bank

AA—

Aa3

AA—

21

182,156

31-Dec-2017


Africa

Angola

Banco Angolano de Investimentos

NR

Caa1

NR

—24

8,176

30-Jun-2017

Democratic Republic of Congo

Rawbank

NR

Caa1

NR

—24

1,123

31-Dec-2016

Ghana

United Bank for Africa (Ghana)

B—

NR

NR

—21

605

30-Sept-2017

Kenya

Stanbic Bank Kenya

BB—

NR

NR

—12

2,356

31-Dec-2017

Mauritius

The Mauritius Commercial Bank

BBB—

Baa3

NR

1

9,116

30-Jun-2017

Nigeria

Zenith Bank

B+

B2

B

—14

15,434

31-Dec-2017

South Africa

Standard Bank of South Africa

BB+

Baa3

NR

—1

144,463

30-Jun-2018

Tanzania

CRDB Bank

NR

B2

NR

—18

2,415

30-Sept-2017

Togo

Ecobank Togo

B

B2

B—

—16

22,432

31-Dec-2017

Uganda

Stanbic Bank Uganda

B+

NR

NR

—21

1,487

31-Dec-2017


Australasia

Australia

Commonwealth Bank of Australia

AA—

Aa3

AA—

21

734,723

31-Dec-2017

New Zealand

Kiwibank

AA—

A1

A

18

15,103

30-Jun-2017