What are the Best and Worst Performing Foreign Bank ADRs YTD?

The S&P; 500 Index is up 11.87% as of August 7, 2009. The Financials in the index are up 14.43%. However many of the foreign banks have risen considerably higher in the recent run-up in global markets. In fact many of the foreign bank ADRs are up over 50% Year-To-Date (YTD).

Three foreign banks have performed exceptionally well in terms of share price increase. They have grown over 100% YTD. These 3 banks are:

Woori Finance (WF)
YTD Change = 148.56%

Barclays Bank (BCS)
YTD Change = 146.33%

Bank of Ireland (IRE)
YTD Change = 142.56%

Woori Finance of South Korea is the best performing ADR YTD. South Korea’s economy is rebounding well. Today the IMF upgraded South Korea’s economic forecast and suggested that the economic growth will contract by 1.8% instead of 3.0% projected earlier. Barclays weathered the credit crisis better and emerged much stronger than its peers in the UK.

Two foreign banks are still in the negative territory YTD. These 2 banks are:

Lloyds Banking Group(LYG)
YTD Change = (5.19%)

Mizuho Financial (MFG)
YTD Change = (17.68%)

Llyods Bank of UK is suffering due to its acquisition of Britain’s largest mortgage lender HBOS plc last year.The Royal Bank of Scotland (RBS), another bank that was killed in the credit crisis is up just 5.60% so far this year. In addition to subprime, derivatives related writedown RBS also incurred heavy losses due to its ill-timed takeover of ABN Amro in partnership with a few other large banks. Clearly investors are sifting thru the rubble after the credit crisis and picking up stronger banks that can survive thru adverse economic conditions.

Leave a Reply

Your email address will not be published. Required fields are marked *