Every year Global Finance magazine publishes the list of world’s best banks. This years ranking was published recently. The full list of banks and additional details will be released in May. From the press release:
Global Finance, founded in 1987, has a circulation of 50,050 and readers in 180 countries. Global Finance’s audience includes senior corporate and financial officers responsible for making investment and strategic decisions at multinational companies and financial institutions. Global Finance also targets the 8,000 international portfolio investors responsible for more than 80% of all global assets under professional management.
Its website — GFMag.com — offers analysis and articles that are the heritage of 29 years of experience in international financial markets. Global Finance is headquartered in New York, with offices around the world. Global Finance regularly selects the top performers among banks and other providers of financial services. These awards have become a trusted standard of excellence for the global financial community.
The following are the World’s Best Developed Markets Banks 2016:
|11||Ireland||Bank of Ireland|
|13||Luxembourg||Banque et Caisse dEpargne de lEtat|
|14||Malta||Bank of Valletta|
|16||Portugal||Banco Santander Totta|
|22||Canada||Royal Bank of Canada|
|26||Hong Kong||Bank East Asia|
|27||New Zealand||Westpac New Zealand|
|28||Singapore||Oversea-Chinese Banking Corp|
Download: The World’s Best Developed Markets Banks 2016 (in Excel)
Source: Global Finance Names The World’s Best Banks 2016, Global Finance
This year’s list includes a few surprises. One of the four super-banks, US-based Wells Fargo(WFC) is the best bank in the US. This is not surprising since the bank has been a consistent performer and is well known for strong customer relationships with many customer’s having multiple products with the bank. Royal Bank of Canada(RY) is the best bank north of the border.Royal Bank is the most profitable bank in Canada and has an excellent track record in terms of shareholder returns.
In developed Europe, ING Groep (ING) is the top bank in Holland. After the financial crisis, ING has made many smart moves including divesting units such as ING Direct and is now on a recovery mode. In Germany, Deutsche Bank is in chaos and has suspended its dividends. So competitor Commerzbank (CRZBY) is the best bank according to Global Finance. Commerzbank’s share collapsed during the financial crisis due to its high exposure to the shipping industry and is now slowly recovering. It is interesting that Spain-based Santander (SAN) is the best bank in the UK. All the British banks are still suffering and most investors are avoiding them at all costs. It may take many decades for British banks to regain their former glory.
Australia’s Westpac(WBK) is the top bank in both the domestic market and New Zealand.
Also see: Bloomberg: The World’s Strongest Banks 2015, Aug 1, 2015 TFS
Disclosure: Long WBK, RY, ING, SAN