This year’s country winners successfully navigated a period of high interest rates and high inflation. Now they must adjust as central banks turn the tables.
The common thread running through this year’s country winners is the resilience they demonstrated during a period of higher interest rates linked to central bank efforts to tame rising inflation. Now, inflation is declining globally and central banks have begun to ease rates as their focus shifts to sustaining economic growth.
That means banks face a different set of challenges and opportunities. The pace of rate cuts is particularly important for those in developing and frontier economies, which stand to gain from an interest rate stance that favors growth following a prolonged period of elevated rates and sluggish GDP. During that stretch, sovereign rating downgrades, particularly in developing and frontier countries, were often the catalyst for follow-on ratings action on their respective banking systems.
Most of our 16 new country winners were in these developing markets. The overall picture was mixed; however, many jurisdictions saw positive developments, including rating upgrades that benefited their banks.
Latin America and The Caribbean
Negative credit trends and the withdrawal of bank ratings resulted in new winners in three Latin American markets. Following Ecuador’s sovereign debt downgrade last year, due to its deteriorating funding and liquidity profile, Fitch downgraded several Ecuadoran banks as well. However, they maintained Produbanco’s rating, confirming the latter as this year’s winner.
In Bolivia, S&P’s withdrew the remaining rating of incumbent Banco Mercantil Santa Cruz, allowing Banco de Credito to claim the top spot. Similarly in Venezuela, Fitch withdrew its rating of last year’s winner, Mercantil Banco Universal, leaving no rated candidates in that country.
Western Europe
Western Europe sees three new winners this year. Hellenic Bank takes the top spot in Cyprus, aided by a Fitch sovereign debt upgrade and improved bank credit fundamentals. With its leading position as the largest bank in Denmark, Danske Bank is a new winner following a two-notch upgrade by Moody’s in May reflecting improved governance controls in response to findings of deficiencies in its Estonian operations. Fitch cited this operational remediation as well as improved profitability and capitalization as the bases for its upgrade last fall. Islandsbanki is our new winner in Iceland as the bank picked up a new Moody’s rating in September 2023, edging out incumbent Arion banki this year.
Central and Eastern Europe
Moody’s upgraded its ratings for five Azerbaijani banks, including the International Bank of Azerbaijan (IBA), based in part on improving trends in the country’s economy, including efforts to diversify beyond the oil sector. While IBA’s score is equal to last year’s winner, Kapital Bank, IBA is larger, earning it the top spot for 2024.
Likewise, in Georgia, TBC Bank is slightly bigger than last year’s winner, Bank of Georgia, giving TBC the Safest Bank title. In Turkey, Fitch and Moody’s upgraded a range of banks following their upgrade of Turkey’s sovereign debt and reflecting increased confidence in the new macroeconomic policies the government implemented last year. These in turn benefit the banking sector, in part by improving access to foreign funding. Each agency acted on up to 17 banks. When the dust settled, Turkiye Garanti Bankasi emerged as this year’s winner. (Fitch upgraded 24 Turkish banks in September, but this rating action occurred after our ratings cutoff date of August 16, 2024.)
Asia-Pacific
Indonesia’s largest bank, state-owned Bank Mandiri, benefits from its leading franchise, solid credit profile, and an improving operating environment. As it is a systemically important domestic bank, both Fitch and S&P cited enhanced levels of government support as the rationale for their upgrade of Mandiri, allowing it to take the top spot.
Under our methodology, a bank that is wholly owned by its parent is ineligible. In Cambodia, ACLEDA is the new winner, as the incumbent, Advanced Bank of Asia, is a 100% owned subsidiary of National Bank of Canada.
Middle East
Similarly, First Iraq Islamic Bank emerges as a new winner after S&P initiated coverage and incumbent Trade Bank of Iraq was downgraded by Fitch. Citing an improved strategic mandate that will contribute to United Arab Emirates’ economic transformation and a high level of implied government support, S&P upgraded Emirates Development Bank, helping it unseat First Abu Dhabi Bank as the safest in the UAE.
Africa
Stanbic Bank Kenya unseated KCB Bank Kenya (KCB). Fitch and Moody’s each downgraded KCB following a lowering of Kenya’s sovereign rating. Stanbic Bank Kenya is not rated by Moody’s and dodged a Fitch downgrade due to its 75% ownership by South Africa’s Standard Bank Group. Securing a new bank rating frequently provides a critical boost in our scoring model: Our winner in Ivory Coast, new entrant Banque Internationale, benefited from Fitch initiating rating coverage that began last December.
Methodology: Behind The Rankings
To be eligible for inclusion in Global Finance’s Safest Banks By Country, institutions must rank among the world’s largest 1,000 banks by assets and carry at least one long-term foreign currency deposit or debt rating from one of the three major rating agencies. Wholly owned subsidiaries are ineligible. Criteria are broader than for our global rankings, which require a position among the largest 500 banks and rating by at least two agencies.
North America | ||||||
Name | Domicile | Fitch Rating | Moody’s Rating | S&P Rating | Total Assets (USD million) | Report Date |
Royal Bank of Canada | Canada | AA- | Aa1 | AA- | 1,405,173 | 1/31/24 |
AgriBank | United States | A+ | Aa3 | AA- | 176,423 | 12/31/23 |
Latin America and The Caribbean | ||||||
Name | Domicile | Fitch Rating | Moody’s Rating | S&P Rating | Total Assets | Report Date |
(USD million) | ||||||
Banco de Galicia y Buenos Aires | Argentina | NR | Caa3 | CCC | 10,727 | 12/31/23 |
Butterfield Bank | Bermuda | NR | A3 | BBB+ | 13,374 | 12/31/23 |
Banco de Credito de Bolivia | Bolivia | B- | NR | NR | 3,630 | 12/31/23 |
Banco BOCOM | Brazil | BB+ | Ba1 | NR | 5,716 | 12/31/23 |
Scotiabank Chile | Chile | A+ | NR | A | 51,221 | 12/31/23 |
BBVA Colombia | Colombia | BBB- | Baa2 | NR | 27,710 | 12/31/23 |
Banco BAC San Jose | Costa Rica | BB+ | NR | NR | 10,592 | 12/31/23 |
Banreservas | Dominican Republic | BB- | Ba3 | NR | 19,356 | 12/31/23 |
Produbanco | Ecuador | B- | NR | NR | 7,502 | 12/31/23 |
Banco Davivienda Salvadoreno | El Salvador | B | NR | NR | 3,090 | 12/31/23 |
Banco Industrial | Guatemala | BB | Ba1 | BB | 20,305 | 12/31/23 |
Banco Atlantida | Honduras | B | NR | BB- | 6,487 | 12/31/23 |
National Commercial Bank Jamaica | Jamaica | BB- | NR | BB- | 7,794 | 9/30/23 |
Banco Santander México | Mexico | BBB+ | A3 | NR | 108,214 | 12/31/23 |
Bladex | Panama | BBB | Baa2 | BBB | 10,744 | 12/31/23 |
Banco Continental | Paraguay | BB+ | Baa3 | NR | 4,858 | 12/31/23 |
Scotiabank Peru | Peru | A- | Baa1 | BBB- | 19,614 | 12/31/23 |
Republic Bank | Trinidad & Tobago | NR | NR | BBB- | 7,774 | 12/31/23 |
Banco de la Republica Oriental del Uruguay | Uruguay | NR | Baa1 | NR | 22,532 | 12/31/23 |
Western Europe | ||||||
Name | Domicile | Fitch Rating | Moody’s Rating | S&P Rating | Total Assets (USD million) | Report Date |
Andorra Banc Agricol Reig | Andorra | BBB | NR | NR | 9,500 | 12/31/23 |
Erste Group Bank | Austria | A | A1 | A+ | 369,387 | 12/31/23 |
BNP Paribas Fortis | Belgium | A+ | A2 | A+ | 409,623 | 12/31/23 |
Hellenic Bank | Cyprus | BBB- | Ba2 | NR | 21,980 | 12/31/23 |
Danske Bank | Denmark | A+ | A1 | A+ | 557,508 | 12/31/23 |
Nordea Bank | Finland | AA- | Aa3 | AA- | 640,599 | 12/31/23 |
Caisse des Depots et Consignations | France | AA- | Aa2 | AA | 1,139,197 | 12/31/23 |
KfW | Germany | AAA | Aaa | AAA | 614,348 | 12/31/23 |
Eurobank | Greece | BB | Baa2 | BB+ | 87,445 | 12/31/23 |
Islandsbanki | Iceland | NR | A3 | BBB+ | 11,649 | 12/31/23 |
Bank of Ireland Group | Ireland | BBB+ | A3 | BBB | 170,594 | 12/31/23 |
Intesa Sanpaolo | Italy | BBB | Baa1 | BBB | 1,055,687 | 12/31/23 |
Liechtensteinische Landesbank | Liechtenstein | NR | Aa2 | NR | 30,230 | 12/31/23 |
Banque et Caisse d’Epargne de l’Etat | Luxembourg | NR | Aa3 | AA+ | 62,507 | 12/31/23 |
Bank of Valletta | Malta | BBB- | NR | BBB- | 15,894 | 12/31/23 |
BNG Bank | Netherlands | AAA | Aaa | AAA | 126,586 | 12/31/23 |
Kommunalbanken | Norway | NR | Aaa | AAA | 51,532 | 12/31/23 |
Banco Santander Totta | Portugal | A- | A2 | A- | 59,809 | 12/31/23 |
Banco Santander | Spain | A- | A2 | A+ | 1,985,134 | 12/31/23 |
Swedish Export Credit Corporation | Sweden | NR | Aa1 | AA+ | 34,725 | 12/31/23 |
Zuercher Kantonalbank | Switzerland | AAA | Aaa | AAA | 235,473 | 12/31/23 |
Nationwide Building Society | United Kingdom | A | A1 | A+ | 344,261 | 4/4/24 |
Central & Eastern Europe and Former Soviet Union | ||||||
Name | Domicile | Fitch Rating | Moody’s Rating | S&P Rating | Total Assets (USD million) | Report Date |
Ardshinbank | Armenia | BB- | Ba3 | BB- | 4,039 | 12/31/23 |
International Bank of Azerbaijan | Azerbaijan | BB- | Ba2 | NR | 8,194 | 12/31/23 |
Belarusbank | Belarus | NR | NR | CCC | 5,518 | 6/30/22 |
United Bulgarian Bank | Bulgaria | A- | NR | NR | 19,279 | 12/31/23 |
Erste & Steiermarkische Bank | Croatia | A- | NR | NR | 16,162 | 12/31/23 |
Komercni banka | Czech Republic | A | A1 | A | 67,765 | 12/31/23 |
Luminor Bank | Estonia | NR | A3 | NR | 17,113 | 12/31/23 |
TBC Bank | Georgia | BB | Ba2 | NR | 11,813 | 12/31/23 |
MFB Hungarian Development Bank | Hungary | BBB | Baa2 | NR | 10,407 | 12/31/23 |
Development Bank of Kazakhstan | Kazakhstan | BBB | Baa2 | BBB- | 9,483 | 12/31/23 |
Bakai Bank | Kyrgyzstan | NR | B3 | NR | 961 | 8/31/23 |
Citadele banka | Latvia | NR | Baa2 | NR | 5,372 | 12/31/23 |
Siauliu Bankas | Lithuania | NR | Baa1 | NR | 5,240 | 12/31/23 |
ING Bank Slaski | Poland | A+ | A2 | NR | 62,397 | 12/31/23 |
Banca Comerciala Romana | Romania | BBB+ | Baa1 | NR | 24,212 | 12/31/23 |
Tatra banka | Slovakia | NR | A3 | NR | 24,558 | 12/31/23 |
Nova Ljubljanska banka | Slovenia | NR | A3 | BBB | 28,790 | 12/31/23 |
Bank Eskhata | Tajikistan | NR | B3 | NR | 425 | 12/31/22 |
Turkiye Garanti Bankasi | Turkey | B | Ba3 | NR | 74,724 | 12/31/23 |
Bank Alliance | Ukraine | NR | NR | CCC+ | 333 | 12/31/23 |
National Bank of Uzbekistan | Uzbekistan | BB- | Ba3 | BB- | 10,251 | 12/31/23 |
Asia-Pacific | ||||||
Name | Domicile | Fitch Rating | Moody’s Rating | S&P Rating | Total Assets | Report Date |
(USD million) | ||||||
BRAC Bank | Bangladesh | NR | B1 | B+ | 6,607 | 12/31/23 |
Bank Islam Brunei Darussalam | Brunei | NR | NR | A- | 7,585 | 12/31/23 |
ACLEDA Bank | Cambodia | NR | NR | B+ | 10,055 | 12/31/22 |
China Development Bank | China | A+ | A1 | A+ | 2,611,361 | 12/31/23 |
Hang Seng Bank | Hong Kong | AA- | Aa3 | AA- | 216,630 | 12/31/23 |
State Bank of India | India | BBB- | Baa3 | BBB- | 741,202 | 3/31/24 |
Bank Mandiri | Indonesia | BBB | Baa2 | BBB | 141,211 | 12/31/23 |
Norinchukin Bank | Japan | NR | A1 | A | 659,343 | 3/31/24 |
ICBC (Macau) | Macau | A | A2 | NR | 46,014 | 12/31/23 |
Malayan Banking Berhad | Malaysia | NR | A3 | A- | 221,333 | 12/31/23 |
Development Bank of Mongolia | Mongolia | B | B3 | B | 713 | 12/31/23 |
National Bank of Pakistan | Pakistan | NR | Caa2 | NR | 23,722 | 12/31/23 |
Development Bank of the Philippines | Philippines | BBB | NR | BBB+ | 17,780 | 12/31/23 |
DBS Bank | Singapore | AA- | Aa1 | AA- | 559,936 | 12/31/23 |
Korea Development Bank | South Korea | AA- | Aa2 | AA | 266,015 | 12/31/23 |
Bank of Ceylon | Sri Lanka | CC | NR | NR | 13,793 | 12/31/23 |
Bank of Taiwan | Taiwan | NR | Aa3 | AA | 200,732 | 12/31/23 |
United Overseas Bank (Thai) | Thailand | A- | A3 | NR | 25,422 | 12/31/23 |
Vietcombank | Vietnam | BB+ | Ba2 | BB | 77,081 | 12/31/23 |
Middle East | ||||||
Name | Domicile | Fitch Rating | Moody’s Rating | S&P Rating | Total Assets (USD million) | Report Date |
Gulf International Bank | Bahrain | A- | A3 | NR | 47,070 | 12/31/23 |
First Iraq Islamic Bank for Investment and Finance | Iraq | NR | NR | B- | 1,607 | 12/31/23 |
Bank Leumi | Israel | A- | A3 | A- | 203,143 | 12/31/23 |
Arab Bank | Jordan | BB | Ba1 | B+ | 40,542 | 12/31/23 |
National Bank of Kuwait | Kuwait | A+ | A1 | A | 122,667 | 12/31/23 |
Bank Muscat | Oman | BB+ | Ba1 | BB+ | 35,515 | 12/31/23 |
Qatar National Bank | Qatar | A+ | Aa3 | A+ | 338,090 | 12/31/23 |
Saudi National Bank | Saudi Arabia | A- | A1 | A- | 276,555 | 12/31/23 |
Emirates Development Bank | UAE | AA- | NR | AA | 4,669 | 12/31/23 |
Africa | ||||||
Name | Domicile | Fitch Rating | Moody’s Rating | S&P Rating | Total Assets | Report Date |
(USD million) | ||||||
Banco Angolano de Investimentos | Angola | B- | B3 | NR | 6,253 | 12/31/23 |
Banque Internationale pour le Commerce et l’Industrie de la Cote d’Ivoire (BICICI) | Cote D’ivoire | B+ | NR | NR | 1,551 | 12/31/23 |
Equity Banque Commerciale du Congo | Dem Rep Of The Congo | NR | B3 | NR | 3,947 | 12/31/23 |
National Bank of Egypt | Egypt | B- | Caa1 | B- | 162,166 | 9/30/23 |
Guaranty Trust Bank (Ghana) | Ghana | B- | NR | NR | 945 | 12/31/23 |
Stanbic Bank Kenya | Kenya | B | NR | NR | 2,874 | 12/31/23 |
Mauritius Commercial Bank | Mauritius | NR | Baa3 | NR | 18,112 | 12/31/23 |
Attijariwafa bank | Morocco | BB | Ba1 | BB | 66,614 | 12/31/23 |
First National Bank of Namibia | Namibia | NR | Ba2 | NR | 3,077 | 12/31/23 |
Access Bank | Nigeria | B- | Caa1 | B- | 29,417 | 12/31/23 |
Development Bank of Rwanda | Rwanda | B+ | NR | NR | 505 | 12/31/23 |
United Bank for Africa Senegal | Senegal | B- | NR | NR | 824 | 12/31/23 |
FirstRand Bank | South Africa | BB- | Baa3 | BB- | 83,881 | 12/31/23 |
CRDB Bank | Tanzania | NR | B1 | NR | 5,274 | 12/31/23 |
Ecobank Transnational | Togo | B- | B3 | B- | 27,230 | 12/31/23 |
Arab Tunisian Bank | Tunisia | B- | Caa1 | CCC+ | 2,489 | 12/31/23 |
Stanbic Bank Uganda | Uganda | B+ | B1 | NR | 2,448 | 12/31/23 |
Australasia | ||||||
Name | Domicile | Fitch Rating | Moody’s Rating | S&P Rating | Total Assets (USD million) | Report Date |
Commonwealth Bank of Australia | Australia | AA- | Aa2 | AA- | 818,754 | 12/31/23 |
Kiwibank | New Zealand | AA | A1 | NR | 20,731 | 12/31/23 |