Industry invested in market expansion and technology, but tariffs loom.
If banks could sum up 2024 in a few words, they would be policy-rate cuts, tighter regulation, and technological investments. Of these, rate cuts affected net interest margins (NIMs) negatively to the overall detriment of profitability, with one notable exception being Japan, while technology advancements continued to transform banks’ traditional ecosystems.
Return on equity (ROE) was solid across the global banking system last year, averaging about 9%. Standouts included DBS in Singapore at 18% ROE, and some Latin American banks exceeding 40%. As the Trump administration upends global trade, 2023 and 2024 will likely be seen as banking’s halcyon days. Their strong results are set to fade as tougher conditions from tariffs take hold. Last year’s banking expansion in the Asia-Pacific (APAC) region exceeded that of the US, Latin America, and Europe, on the back of the developing economic dynamic. The GDP growth rate in APAC was 4.5% in 2024, according to the International Monetary Fund, representing 60% of global growth, and high savings rates.
2025 Winners
If banks could sum up 2024 in a few words, they would be policy-rate cuts, tighter regulation, and technological investments. Of these, rate cuts affected net interest margins (NIMs) negatively to the overall detriment of profitability, with one notable exception being Japan, while technology advancements continued to transform banks’ traditional ecosystems.
Return on equity (ROE) was solid across the global banking system last year, averaging about 9%. Standouts included DBS in Singapore at 18% ROE, and some Latin American banks exceeding 40%. As the Trump administration upends global trade, 2023 and 2024 will likely be seen as banking’s halcyon days. Their strong results are set to fade as tougher conditions from tariffs take hold. Last year’s banking expansion in the Asia-Pacific (APAC) region exceeded that of the US, Latin America, and Europe, on the back of the developing economic dynamic. The GDP growth rate in APAC was 4.5% in 2024, according to the International Monetary Fund, representing 60% of global growth, and high savings rates.
The global transformation of banks into, essentially, tech companies continued last year on the back of breakthroughs in digital-payment technology and the introduction of digital platforms in retail and corporate banking, wealth management, trade finance, foreign exchange, and digital assets. Some $600 billion was spent by banks globally as they embarked on digitalization, and there was a notable trend for lenders to develop fintech internally rather than use third parties.
Banks participated in the rise of digital assets last year, particularly in Hong Kong and Singapore, where customer demand for cryptocurrency-trading capability and tokenized assets—ranging from tokenized investment funds to real-world assets such as real estate and fine art—increased in 2024.
AI played its part in enhancing client interaction—relationship managers in premium banking typically could efficiently service eight to 10 times the normal number of clients—and in research, although the impact on cost-to-income (CTI) ratios was minimal. In 2024, the US banking industry’s CTI reached 62% compared to 55% in Europe. At the same time, CTI ratios ranged from the high 70s in Japan to the mid 50s in India, and the high 30s in China.
Traditional banks continued to experience competition from neobank startups, although greater regulatory scrutiny looms over the “challenger” bank sector. European, US, and Asian regulators have levied fines for various compliance failures.
Still, with Generation Z entering the fray as a dominant customer base, banks have had to respond nimbly to the cohort’s frustration with the traditional banking experience and desire for greater transparency, personalized attention, equitable treatment, and democratized data and other information. This mindset draws these customers to the challenger bank segment.
The booming private-credit sector has also been nipping at the heels of traditional banks’ lending activity. However, banks have implemented various countermeasures, such as advising on and structuring large private-credit deals and providing distribution via wealth management platforms.
Methodology
With input from industry analysts, corporate executives, and technology experts, Global Finance editors select the winners for the Best Bank awards using the information provided in entries and independent research based on objective and subjective factors. It is unnecessary to enter to win, but materials supplied in an entry can increase the chance of success. Entrants may provide details that are not publicly available.
Judgments are based on performance from January 1 to December 31, 2024. Then, we apply an algorithm to shorten the list of contenders and arrive at a numerical score, with 100 equivalent to perfection. The algorithm incorporates criteria weighted for relative importance, including knowledge of local conditions and customers, financial strength and safety, strategic relationships, capital investment, and innovation in products and services.
Once we have narrowed the field, our final criteria include the scope of global coverage, staff size, customer service, risk management, range of products and services, execution skills, and intelligent use of technology. In the case of a tie, our bias leans toward a local provider rather than a global institution. We also tend to favor privately owned banks over governmentowned institutions. The winners are those banks that best serve the specialized needs of corporations as they engage in global business. The winners are not always the biggest but the best: those with the qualities companies should look for when when choosing a provider.
