HOW WE MEASURE THE SAFETY OF BANKS
By Andrew Cunningham
The safest banks chart compares the ratings for the world’s largest 500 banks, based on asset size. Long-term foreign currency ratings issued by Fitch Ratings, Standard & Poor’s and Moody’s Investors Service were used. Where possible, ratings on holding companies were used rather than operating companies, and banks that are wholly owned by other banks were omitted. Government import-export finance institutions were also omitted. Within each rank set, banks are rated according to asset size based on data for the most recent annual reporting period provided by Fitch Solutions and Moody’s. In previous years we assigned a “tie” score to banks that had the same number of points and had assets within $5 billion of each other. We have changed our methodology on this point and will no longer be giving “ties.” Ratings are reproduced with permission from the three ratings agencies, with all rights reserved. A rating is not a recommendation to purchase, sell or hold a security, and it does not comment on market price or suitability for a particular investor.
| Rank | Bank Name | Fitch rating | S&P rating | Moody’s rating | Total Points | Reporting Assets ($mn) | Country |
| 1 | China Development Bank | A+ | AA- | Aa3 | 20 | 992,157 | China |
| 2 | Agricultural Development Bank of China | A+ | AA- | Aa3 | 20 | 310,029 | China |
| 3 | Korea Finance Corporation | AA- | A+ | Aa3 | 20 | 157,053 | South Korea |
| 4 | Industrial Bank of Korea | AA- | A | Aa3 | 19 | 161,241 | South Korea |
| 5 | Bank of Taiwan | N/R | A+ | Aa3 | 18.5 | 129,803 | Taiwan |
| 6 | Industrial and Commercial Bank of China* | A | A | A1 | 16 | 2,458,988 | China |
| 7 | China Construction Bank | A | A | A1 | 16 | 1,949,213 | China |
| 8 | Bank of China | A | A | A1 | 16 | 1,877,514 | China |
| 9 | KB Kookmin Bank* | A | A | A1 | 16 | 222,668 | South Korea |
| 10 | Shinhan Bank | A | A | A1 | 16 | 198,706 | South Korea |
| 11 | NongHyup Bank | A | A | A1 | 16 | 170,441 | South Korea |
| 12 | Agricultural Bank of China | A | N/R | A1 | 15.5 | 1,853,313 | China |
| 13 | Hana Bank* | N/R | A | A1 | 15.5 | 133,409 | South Korea |
| 14 | Land Bank of Taiwan* | N/R | A- | Aa3 | 15.5 | 75,505 | Taiwan |
| Rank | Bank Name | Fitch rating | S&P rating | Moody’s rating | Total Points | Reporting Assets ($mn) | Country |
| 1 | BancoEstado | A+ | A+ | Aa3 | 19 | 40,045 | Chile |
| 2 | Banco de Chile | N/R | A+ | Aa3 | 18.5 | 41,699 | Chile |
| 3 | Banco Santander Chile | A+ | A | Aa3 | 18 | 47,282 | Chile |
| 4 | Banco de Crédito e Inversiones | A- | A | A1 | 15 | 31,029 | Chile |
| 6 | HSBC Mexico | A- | BBB | Baa1 | 9 | 34,743 | Mexico |
| 7 | Itaú Unibanco | BBB+ | BBB | Baa1 | 8 | 454,019 | Brazil |
| 8 | Banco Santander Mexico | BBB+ | BBB | Baa1 | 8 | 52,827 | Mexico |
| 9 | Banco CorpBanca* | N/R | BBB+ | Baa1 | 8 | 17,110 | Chile |
| 10 | BBVA Chile | N/R | BBB+ | Baa1 | 8 | 16,404 | Chile |
| 11 | First Citizens Bank* | N/R | BBB+ | Baa1 | 8 | 4,869 | Trinidad & Tobago |
| 12 | Banco Bradesco | BBB+ | BBB | Baa2 | 7 | 406,129 | Brazil |
| 13 | Banco Nacional de Comercio Exterior | BBB | BBB | Baa1 | 7 | 13,961 | Mexico |
| 14 | Banco Latinoamericano de Comercio Exterior* | BBB+ | BBB | Baa2 | 7 | 6,360 | Panama |
| Rank | Bank Name | Fitch rating | S&P rating | Moody’s rating | Total Points | Reporting Assets ($mn) | Country |
| 1 | eská spoitelna | A | A | A2 | 15 | 44,764 | Czech Republic |
| 2 | Komerní banka | A | A | A2 | 15 | 37,854 | Czech Republic |
| 3 | PKO Bank Polski | N/R | A- | A2 | 12.5 | 55,817 | Poland |
| 4 | Bank Pekao | A- | BBB+ | A2 | 12 | 42,895 | Poland |
| 5 | ING Bank lski | A | N/R | Baa1 | 11 | 20,402 | Poland |
| 6 | Všeobecná úverová banka (VÚB) | BBB+ | N/R | A3 | 9.5 | 14,402 | Slovak Republic |
| 7 | BRE Bank | A | BBB | Baa2 | 9 | 28,933 | Poland |
| 8 | Vnesheconombank | BBB | BBB | Baa1 | 7 | 78,642 | Russia |
| 9 | Bank Handlowy w Warszawie | A- | BBB | Baa3 | 7 | 12,371 | Poland |
| 10 | Sberbank | BBB | N/R | Baa1 | 6.5 | 336,538 | Russia |
| 11 | VTB Bank | BBB | N/R | Baa1 | 6.5 | 210,885 | Russia |
| Rank | Bank Name | Fitch rating | S&P rating | Moody’s rating | Total Points | Reporting Assets ($mn) | Country |
| 1 | National Bank of Abu Dhabi | AA- | A+ | Aa3 | 20 | 69,617 | United Arab Emirates |
| 2 | National Bank of Kuwait | AA- | A+ | Aa3 | 20 | 48,912 | Kuwait |
| 3 | Qatar National Bank | A+ | A+ | Aa3 | 19 | 82,955 | Qatar |
| 4 | Samba Financial Group | A+ | A+ | Aa3 | 19 | 51,406 | Saudi Arabia |
| 5 | National Commercial Bank | A+ | A+ | A1 | 18 | 80,320 | Saudi Arabia |
| 6 | Al Rajhi Bank | A+ | A+ | A1 | 18 | 58,884 | Saudi Arabia |
| 7 | Riyad Bank | A+ | A+ | A1 | 18 | 48,237 | Saudi Arabia |
| 8 | Abu Dhabi Commercial Bank | A+ | A | A1 | 17 | 50,027 | United Arab Emirates |
| 9 | Kuwait Finance House | A+ | A- | Aa3 | 17 | 48,312 | Kuwait |
| 10 | Banque Saudi Fransi | A | A | Aa3 | 17 | 37,461 | Saudi Arabia |
| 11 | SABB | A | A | Aa3 | 17 | 36,975 | Saudi Arabia |
| 12 | Union National Bank | A+ | N/R | A1 | 17 | 22,456 | United Arab Emirates |
| 13 | Arab National Bank | A | A | A1 | 16 | 31,353 | Saudi Arabia |
| Rank | Bank Name | Fitch rating | S&P rating | Moody’s rating | Total Points | Reporting Assets ($mn) | Country |
| 1 | Absa Bank | A- | BBB | Baa1 | 9 | 91,176 | South Africa |
| 2 | FirstRand Bank | BBB+ | BBB+ | Baa1 | 9 | 75,992 | South Africa |
| 3 | Standard Bank South Africa | BBB+ | BBB+ | Baa1 | 9 | 31,078 | South Africa |
| 4 | Nedbank | BBB+ | BBB | Baa1 | 8 | 86,931 | South Africa |
| 5 | Investec | BBB | N/R | Baa1 | 6.5 | 37,778 | South Africa |
Ratings current on 15 October 2012
N/R – No Rating
Source for ratings: Fitch Ratings, Standard & Poor’s, Moody’s Investors Service
Source for reporting assets: Fitch Solutions, except *Moody’s Investors Service
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