Global Finance’s top 50 emerging markets honorees navigated their individual obstacles in their own unique way.
The institutions in our 50 Safest Emerging Markets Banks rankings are facing a challenging operating environment from rising geopolitical tensions, potential disruptions of global trade, and commodity price volatility. Many banks have posted solid operating performance in recent years, as successive interest rate hikes reduced inflation in their regions and globally and also boosted profitability with expanded net interest margins. Now, as central banks begin to ease interest rates to support their respective economies, the banking sector will focus on sustaining profitability in a lower-rate environment by expanding their loan portfolio and other products.
In the Asia-Pacific region, China’s economy continues to struggle, burdened by a depressed real estate market and weak consumer demand. Growth forecasts indicate further deterioration, with projected GDP of 4.9% in 2024, down from 5.2% last year and falling to 4.5% in 2025, according to the Organization for Economic Co-operation and Development (OECD). Further deterioration in the Chinese economy presents a risk of contagion regionally and globally, with trade disruptions.
South Korea is vulnerable under this scenario, as China is one of its largest trading partners. But the country is on solid footing, bolstered by a strong consumer-technology sector and a semiconductor industry that is enjoying record exports. The South Korean banking sector’s strength is evident in our rankings, holding the top three spots and placing eight banks among the top 15. However, with the OECD’s GDP growth outlook for 2024 revised downward slightly from the organization’s earlier forecasts, to 2.5%, policy makers at the Bank of Korea are looking to ease interest rates.
Taiwanese banks are also well represented in our ranking and place eight institutions among our Top 50. Taiwan’s critical role in the semiconductor sector, combined with trade tension between the United States and China, carries its own set of geopolitical risks.
Chinese banks hold nine positions on our list, up from eight last year. China Merchants Bank is a new entrant.
In the Middle East, which places 18 banks across four countries in our Top 50 Emerging Markets rankings, the danger of a widening conflict between Israel and other Middle Eastern countries poses significant risks to the region’s banking systems and economies. As China’s demand for oil has declined, given its weakening economy, any escalation in the current war could potentially destabilize the oil supply from the region.
Year-to-year changes in our rankings are the result of a number of factors, including expected ratings fluctuations and other elements of our selection methodology. While Emirates Development Bank has a smaller balance sheet than its emerging markets peers on this list, it enters our ranking this year at No. 5 because it now has an asset size that puts it among the top 500 banks with two agency ratings—a requirement under our methodology. Additionally, the bank’s ranking was bolstered by an upgrade to AA by S&P in May.
In many instances, upgrades to a country’s sovereign ratings have a follow-on impact on the ratings of their banks, given the increased ability of the government to support the banking sector. This is the case in Qatar, where Fitch upgraded the sovereign rating to AA in March and subsequently boosted the ratings of seven Qatari banks, five of which are represented in our rankings. Qatar National Bank thus moved up five spots to No. 7, while Qatar Islamic Bank rose 11 places to No. 30. New entrants as a result of this sovereign upgrade include Dukhan Bank at No. 44, Qatar International Islamic Bank at No. 46, and Ahli Bank at No. 47.
In South Korea, a Moody’s upgrade of Suhyup Bank last November helped it to rise 10 spots in our ranking to No. 32. UAE-based Mashreq Bank rose seven places to No. 42 as a result of a Moody’s upgrade in May 2024. Year to year, industry consolidation is a frequent catalyst for position changes, and Ahli United Bank is no longer represented following its acquisition and integration by Kuwait Finance House, now at No. 37. China Merchants Bank is also a new entrant at No. 48 following an S&P upgrade to A- in March. Consequently, these events and upgrades pushed Banque Saudi Fransi, Arab National Bank, and Saudi Awwal Bank out of the rankings. It’s important to note that, with these upgrades, the score cutoff for inclusion in our 50 Safest Emerging Markets Banks rose to 13 points from 12.5 points last year.
| The 50 Safest Emerging Markets Banks | |||||||
|---|---|---|---|---|---|---|---|
| Rank | Name | Domicile | Fitch Rating | Moody’s Rating | S&P Rating | Total Assets | Report Date |
| (USD million) | |||||||
| 1 | Korea Development Bank | South Korea | AA- | Aa2 | AA | 266,015 | 12/31/23 |
| 2 | Export-Import Bank of Korea | South Korea | AA- | Aa2 | AA | 97,100 | 12/31/23 |
| 3 | Industrial Bank of Korea | South Korea | AA- | Aa2 | AA- | 346,267 | 12/31/23 |
| 4 | Bank of Taiwan | Taiwan | NR | Aa3 | AA | 200,732 | 12/31/23 |
| 5 | Emirates Development Bank | Uae | AA- | NR | AA | 4,669 | 12/31/23 |
| 6 | First Abu Dhabi Bank | Uae | AA- | Aa3 | AA- | 318,190 | 12/31/23 |
| 7 | Qatar National Bank | Qatar | A+ | Aa3 | A+ | 338,090 | 12/31/23 |
| 8 | China Development Bank | China | A+ | A1 | A+ | 2,611,361 | 12/31/23 |
| 9 | Agricultural Development Bank of China | China | A+ | A1 | A+ | 1,394,821 | 12/31/23 |
| 10 | Export-Import Bank of China | China | A+ | A1 | A+ | 893,938 | 12/31/23 |
| 11 | Kookmin Bank | South Korea | A | Aa3 | A+ | 408,315 | 12/31/23 |
| 12 | Shinhan Bank | South Korea | A | Aa3 | A+ | 394,827 | 12/31/23 |
| 13 | Hana Bank | South Korea | A | Aa3 | A+ | 382,938 | 12/31/23 |
| 14 | NongHyup Bank | South Korea | A | Aa3 | A+ | 307,812 | 12/31/23 |
| 15 | Woori Bank | South Korea | A | A1 | A+ | 351,294 | 12/31/23 |
| 16 | Abu Dhabi Commercial Bank | Uae | A+ | A1 | A | 154,433 | 12/31/23 |
| 17 | Mega International Commercial Bank | Taiwan | NR | A1 | A+ | 129,953 | 12/31/23 |
| 18 | National Bank of Kuwait | Kuwait | A+ | A1 | A | 122,667 | 12/31/23 |
| 19 | Land Bank of Taiwan | Taiwan | NR | Aa3 | A | 110,496 | 12/31/23 |
| 20 | Industrial & Commercial Bank of China | China | A | A1 | A | 6,256,940 | 12/31/23 |
| 21 | Agricultural Bank of China | China | A | A1 | A | 5,622,090 | 12/31/23 |
| 22 | China Construction Bank | China | A | A1 | A | 5,364,918 | 12/31/23 |
| 23 | Bank of China | China | A | A1 | A | 4,540,031 | 12/31/23 |
| 24 | Komercni banka | Czech Republic | A | A1 | A | 67,765 | 12/31/23 |
| 25 | Emirates NBD Bank | Uae | A+ | A2 | NR | 234,912 | 12/31/23 |
| 26 | First Commercial Bank | Taiwan | NR | A1 | A | 139,926 | 12/31/23 |
| 27 | Cathay United Bank | Taiwan | NR | A1 | A | 135,255 | 12/31/23 |
| 28 | ING Bank Slaski | Poland | A+ | A2 | NR | 62,397 | 12/31/23 |
| 29 | Abu Dhabi Islamic Bank | Uae | A+ | A2 | NR | 52,502 | 12/31/23 |
| 30 | Qatar Islamic Bank | Qatar | A | A1 | NR | 51,952 | 12/31/23 |
| 31 | Scotiabank Chile | Chile | A+ | NR | A | 51,221 | 12/31/23 |
| 32 | Suhyup Bank | South Korea | NR | A1 | A | 43,632 | 12/31/23 |
| 33 | Boubyan Bank | Kuwait | A | A2 | A | 27,356 | 12/31/23 |
| 34 | Bank of Communications | China | A | A2 | A- | 1,968,261 | 12/31/23 |
| 35 | Saudi National Bank | Saudi Arabia | A- | A1 | A- | 276,555 | 12/31/23 |
| 36 | Al Rajhi Bank | Saudi Arabia | A- | A1 | A- | 215,493 | 12/31/23 |
| 37 | Kuwait Finance House | Kuwait | A | A2 | NR | 123,710 | 12/31/23 |
| 38 | Hua Nan Commercial Bank | Taiwan | NR | A2 | A | 122,642 | 12/31/23 |
| 39 | E.SUN Commercial Bank | Taiwan | NR | A2 | A | 116,223 | 12/31/23 |
| 40 | Chang Hwa Commercial Bank | Taiwan | NR | A2 | A | 94,520 | 12/31/23 |
| 41 | Banco del Estado de Chile | Chile | NR | A2 | A | 66,765 | 12/31/23 |
| 42 | Mashreqbank | Uae | A | A3 | A | 65,341 | 12/31/23 |
| 43 | Banco de Chile | Chile | NR | A2 | A | 63,888 | 12/31/23 |
| 44 | Dukhan Bank | Qatar | A | A2 | NR | 31,425 | 12/31/23 |
| 45 | Al Ahli Bank of Kuwait | Kuwait | A | A2 | NR | 20,469 | 12/31/23 |
| 46 | Qatar International Islamic Bank | Qatar | A | A2 | NR | 16,930 | 12/31/23 |
| 47 | Ahli Bank | Qatar | A | A2 | NR | 16,606 | 12/31/23 |
| 48 | China Merchants Bank | China | A- | A2 | A- | 1,543,827 | 12/31/23 |
| 49 | Riyad Bank | Saudi Arabia | A- | A2 | A- | 103,160 | 12/31/23 |
| 50 | Banco de Credito e Inversiones | Chile | A- | A2 | A- | 90,808 | 12/31/23 |
