World’s Top 50 Safest Commercial Banks 2017

In commercial rankings, which exclude government-supported entities, DZ knocks Toronto-Dominion from the top slot.

Our annual look at the safest banks in the commercial space shows Germany’s DZ bank replacing TD Bank as the world’s safest commercial bank as result of the Canadian bank’s one-notch downgrade by Moody’s in May.

The first six banks on the list are tied with 23 points each, representing two ratings of AA and one of AA-, or an equivalent configuration. DZ is the largest and therefore ranks first, in line with our methodology of ranking banks with the same score by asset size, reflecting the strong positive correlation between asset size and high ratings.

The three big Singaporean banks—DBS, Oversea-Chinese Bank and United Overseas Bank—rank second, fourth and fifth. Sweden’s Svenska Handelsbanken places third.

No commercial bank enjoys an AAA rating from any of the agencies, and only Moody’s has assigned ratings of AA+ (Aa1 in Moody’s notation). Svenska Handelsbanken and RBC are the only banks receiving a AA rating from Fitch.

Global Finance’s ranking of the world’s safest commercial banks excludes banks that are majority-owned by governments or that enjoy sponsorship from their governments or regional bodies.

European banks contribute 19 of the 50 safest commercial banks. This is fewer than the 25 that Europe contributes to the Global Top 50 rankings, but nonetheless shows that strong European banks are not primarily a result of state ownership or sponsorship.

However, the removal of those state-owned/sponsored banks—which include the nine highest-ranked banks in the global list—does open the way for some banks that do not score highly enough for inclusion in the Global Top 50. Nine US banks feature among the 50 Safest Commercial Banks, compared to only five in the global list. Five Australian banks feature in the commercial list, compared to four in the global list. One Japanese bank, Bank of Tokyo-Mitsubishi, slides into the commercial ranking in 50th place.

In contrast, China contributes no banks to the safest-commercial ranking. The two Chinese banks in the global list are both state owned, and none of the privately owned Chinese banks come close to scoring highly enough for inclusion in the 50 Safest Commercial Banks. South Korea contributes one bank to the commercial rankings, compared to three for the global ranking.

One Latin American bank scores highly enough for inclusion—Banco Santander Chile at 45th, with a score of 18.

A score of 17 is the minimum requirement for inclusion in this year’s commercial-bank rankings, equivalent to two ratings of A+ and one of A. However, a score of 17 was not in itself sufficient. Three banks scoring 17 occupy the final positions in the ranking; eleven other banks, including Banco de Chile, scored 17 points but had fewer assets. 

THE 50 SAFEST COMMERCIAL BANKS
Rank	Group Name	Country	Ratings			Total Score	Assets$ mn	StatementDate
			Fitch	Moody’s	S&P
1	DZ Bank	Germany	AA-	Aa1	AA-	23	536,995	12/31/16
2	DBS Bank	Singapore	AA-	Aa1	AA-	23	332,967	12/31/16
3	Svenska Handelsbanken	Sweden	AA	Aa2	AA-	23	289,949	12/31/16
4	OCBC Bank	Singapore	AA-	Aa1	AA-	23	283,402	12/31/16
5	United Overseas Bank	Singapore	AA-	Aa1	AA-	23	235,102	12/31/16
6	Deutsche Apotheker- und Ärztebank	Germany	AA-	Aa1	AA-	23	40,661	12/31/16
7	TD Bank	Canada	AA-	Aa2	AA-	22	878,137	10/31/16
8	Pictet & Cie	Switzerland	AA-	Aa2	N/R	21.5	34,092	12/31/15
9	Royal Bank of Canada	Canada	AA	A1	AA-	21	880,592	10/31/16
10	Rabobank	Netherlands	AA-	Aa2	A+	21	698,422	12/31/16
11	ANZ Group	Australia	AA-	Aa3	AA-	21	698,054	9/30/16
12	Commonwealth Bank of Australia	Australia	AA-	Aa3	AA-	21	692,914	6/30/16
13	Nordea	Sweden	AA-	Aa3	AA-	21	648,950	12/31/16
14	Westpac	Australia	AA-	Aa3	AA-	21	640,319	9/30/16
15	National Australia Bank	Australia	AA-	Aa3	AA-	21	593,333	9/30/16
16	Swedbank	Sweden	AA-	Aa3	AA-	21	237,713	12/31/16
17	First Abu Dhabi Bank	UAE	AA-	Aa3	AA-	21	185,799	12/31/16
18	Hang Seng Bank	Hong Kong	A+	Aa2	AA-	21	177,617	12/31/16
19	AgriBank	United States	AA-	Aa3	AA-	21	102,563	12/31/16
20	Fédération des Caisses Desjardins	Canada	AA-	Aa2	A+	21	100,289	12/31/16
21	U.S. Bancorp	United States	AA	A1	A+	20	445,964	12/31/16
22	SEB	Sweden	AA-	Aa3	A+	20	289,184	12/31/16
23	DNB	Norway	N/R	Aa2	A+	20	281,136	9/30/16
24	HSBC France	France	AA-	A1	AA-	20	178,584	12/31/16
25	CoBank	United States	AA-	N/R	AA-	20	126,131	12/31/16
26	National Bank of Kuwait	Kuwait	AA-	Aa3	A+	20	79,073	12/31/16
27	OP Corporate Bank	Finland	N/R	Aa3	AA-	20	65,256	9/30/16
28	AgFirst	United States	AA-	N/R	AA-	20	32,058	12/31/16
29	LGT Bank	Liechtenstein	N/R	Aa2	A+	20	29,079	12/31/16
30	Farm Credit Bank of Texas	United States	AA-	Aa3	N/R	20	21,222	12/31/16
31	Bank für Sozialwirtschaft	Germany	AA-	N/R	AA-	20	8,982	12/31/16
32	Scotiabank	Canada	AA-	A1	A+	19	668,706	10/31/16
33	Bank of Montreal	Canada	AA-	A1	A+	19	513,269	10/31/16
34	CIBC	Canada	AA-	A1	A+	19	374,063	10/31/16
35	Qatar National Bank	Qatar	AA-	Aa3	A	19	197,718	12/31/16
36	HSBC Holdings	United Kingdom	AA-	A1	A	18	2,374,986	12/31/16
37	UBS	Switzerland	A	Aa3	A+	18	998,995	12/31/16
38	ING	Netherlands	A+	A1	A+	18	889,553	12/31/16
39	Banque Fédérative du Crédit Mutuel	France	A+	Aa3	A	18	517,913	12/31/16
40	BNY Mellon	United States	AA-	A1	A	18	333,469	12/31/16
41	Nationwide Building Society	United Kingdom	A+	Aa3	A	18	275,935	4/04/16
42	Shinhan Bank	South Korea	A	Aa3	A+	18	250,604	12/31/16
43	State Street	United States	AA-	A1	A	18	242,698	12/31/16
44	Northern Trust	United States	AA-	A2	A+	18	123,927	12/31/16
45	Banco Santander Chile	Chile	A+	Aa3	A	18	55,493	12/31/16
46	Suncorp-Metway	Australia	A+	A1	A+	18	47,242	6/30/16
47	Kiwibank	New Zealand	AA-	A1	A	18	13,743	6/30/16
48	BNP Paribas	France	A+	A1	A	17	2,189,268	12/31/16
49	Wells Fargo	United States	AA-	A2	A	17	1,930,115	12/31/16
50	Bank of Tokyo-Mitsubishi	Japan	A	A1	A+	17	1,903,411	3/31/16
Note: Ratings valid on July 31, 2017

Our annual look at the safest banks in the commercial space shows Germany’s DZ bank replacing TD Bank as the world’s safest commercial bank as result of the Canadian bank’s one-notch downgrade by Moody’s in May.

The first six banks on the list are tied with 23 points each, representing two ratings of AA and one of AA-, or an equivalent configuration. DZ is the largest and therefore ranks first, in line with our methodology of ranking banks with the same score by asset size, reflecting the strong positive correlation between asset size and high ratings.

The three big Singaporean banks—DBS, Oversea-Chinese Bank and United Overseas Bank—rank second, fourth and fifth. Sweden’s Svenska Handelsbanken places third.

No commercial bank enjoys an AAA rating from any of the agencies, and only Moody’s has assigned ratings of AA+ (Aa1 in Moody’s notation). Svenska Handelsbanken and RBC are the only banks receiving a AA rating from Fitch.

Global Finance’s ranking of the world’s safest commercial banks excludes banks that are majority-owned by governments or that enjoy sponsorship from their governments or regional bodies.

European banks contribute 19 of the 50 safest commercial banks. This is fewer than the 25 that Europe contributes to the Global Top 50 rankings, but nonetheless shows that strong European banks are not primarily a result of state ownership or sponsorship.

However, the removal of those state-owned/sponsored banks—which include the nine highest-ranked banks in the global list—does open the way for some banks that do not score highly enough for inclusion in the Global Top 50. Nine US banks feature among the 50 Safest Commercial Banks, compared to only five in the global list. Five Australian banks feature in the commercial list, compared to four in the global list. One Japanese bank, Bank of Tokyo-Mitsubishi, slides into the commercial ranking in 50th place.

In contrast, China contributes no banks to the safest-commercial ranking. The two Chinese banks in the global list are both state owned, and none of the privately owned Chinese banks come close to scoring highly enough for inclusion in the 50 Safest Commercial Banks. South Korea contributes one bank to the commercial rankings, compared to three for the global ranking.

One Latin American bank scores highly enough for inclusion—Banco Santander Chile at 45th, with a score of 18.

A score of 17 is the minimum requirement for inclusion in this year’s commercial-bank rankings, equivalent to two ratings of A+ and one of A. However, a score of 17 was not in itself sufficient. Three banks scoring 17 occupy the final positions in the ranking; eleven other banks, including Banco de Chile, scored 17 points but had fewer assets. n

THE 50 SAFEST COMMERCIAL BANKS
Rank	Group Name	Country	Ratings			Total Score	Assets$ mn	StatementDate
			Fitch	Moody’s	S&P
1	DZ Bank	Germany	AA-	Aa1	AA-	23	536,995	12/31/16
2	DBS Bank	Singapore	AA-	Aa1	AA-	23	332,967	12/31/16
3	Svenska Handelsbanken	Sweden	AA	Aa2	AA-	23	289,949	12/31/16
4	OCBC Bank	Singapore	AA-	Aa1	AA-	23	283,402	12/31/16
5	United Overseas Bank	Singapore	AA-	Aa1	AA-	23	235,102	12/31/16
6	Deutsche Apotheker- und Ärztebank	Germany	AA-	Aa1	AA-	23	40,661	12/31/16
7	TD Bank	Canada	AA-	Aa2	AA-	22	878,137	10/31/16
8	Pictet & Cie	Switzerland	AA-	Aa2	N/R	21.5	34,092	12/31/15
9	Royal Bank of Canada	Canada	AA	A1	AA-	21	880,592	10/31/16
10	Rabobank	Netherlands	AA-	Aa2	A+	21	698,422	12/31/16
11	ANZ Group	Australia	AA-	Aa3	AA-	21	698,054	9/30/16
12	Commonwealth Bank of Australia	Australia	AA-	Aa3	AA-	21	692,914	6/30/16
13	Nordea	Sweden	AA-	Aa3	AA-	21	648,950	12/31/16
14	Westpac	Australia	AA-	Aa3	AA-	21	640,319	9/30/16
15	National Australia Bank	Australia	AA-	Aa3	AA-	21	593,333	9/30/16
16	Swedbank	Sweden	AA-	Aa3	AA-	21	237,713	12/31/16
17	First Abu Dhabi Bank	UAE	AA-	Aa3	AA-	21	185,799	12/31/16
18	Hang Seng Bank	Hong Kong	A+	Aa2	AA-	21	177,617	12/31/16
19	AgriBank	United States	AA-	Aa3	AA-	21	102,563	12/31/16
20	Fédération des Caisses Desjardins	Canada	AA-	Aa2	A+	21	100,289	12/31/16
21	U.S. Bancorp	United States	AA	A1	A+	20	445,964	12/31/16
22	SEB	Sweden	AA-	Aa3	A+	20	289,184	12/31/16
23	DNB	Norway	N/R	Aa2	A+	20	281,136	9/30/16
24	HSBC France	France	AA-	A1	AA-	20	178,584	12/31/16
25	CoBank	United States	AA-	N/R	AA-	20	126,131	12/31/16
26	National Bank of Kuwait	Kuwait	AA-	Aa3	A+	20	79,073	12/31/16
27	OP Corporate Bank	Finland	N/R	Aa3	AA-	20	65,256	9/30/16
28	AgFirst	United States	AA-	N/R	AA-	20	32,058	12/31/16
29	LGT Bank	Liechtenstein	N/R	Aa2	A+	20	29,079	12/31/16
30	Farm Credit Bank of Texas	United States	AA-	Aa3	N/R	20	21,222	12/31/16
31	Bank für Sozialwirtschaft	Germany	AA-	N/R	AA-	20	8,982	12/31/16
32	Scotiabank	Canada	AA-	A1	A+	19	668,706	10/31/16
33	Bank of Montreal	Canada	AA-	A1	A+	19	513,269	10/31/16
34	CIBC	Canada	AA-	A1	A+	19	374,063	10/31/16
35	Qatar National Bank	Qatar	AA-	Aa3	A	19	197,718	12/31/16
36	HSBC Holdings	United Kingdom	AA-	A1	A	18	2,374,986	12/31/16
37	UBS	Switzerland	A	Aa3	A+	18	998,995	12/31/16
38	ING	Netherlands	A+	A1	A+	18	889,553	12/31/16
39	Banque Fédérative du Crédit Mutuel	France	A+	Aa3	A	18	517,913	12/31/16
40	BNY Mellon	United States	AA-	A1	A	18	333,469	12/31/16
41	Nationwide Building Society	United Kingdom	A+	Aa3	A	18	275,935	4/04/16
42	Shinhan Bank	South Korea	A	Aa3	A+	18	250,604	12/31/16
43	State Street	United States	AA-	A1	A	18	242,698	12/31/16
44	Northern Trust	United States	AA-	A2	A+	18	123,927	12/31/16
45	Banco Santander Chile	Chile	A+	Aa3	A	18	55,493	12/31/16
46	Suncorp-Metway	Australia	A+	A1	A+	18	47,242	6/30/16
47	Kiwibank	New Zealand	AA-	A1	A	18	13,743	6/30/16
48	BNP Paribas	France	A+	A1	A	17	2,189,268	12/31/16
49	Wells Fargo	United States	AA-	A2	A	17	1,930,115	12/31/16
50	Bank of Tokyo-Mitsubishi	Japan	A	A1	A+	17	1,903,411	3/31/16
Note: Ratings valid on July 31, 2017