With so much of global growth focused on emerging markets, it pays to know the banks that are best positioned to provide funding and profit from growing wealth and development in these areas.
Recently, Global Finance Magazinereleased its rankings for the best emerging market banks, which is based on a survey of industry analysts, corporate executives and banking consultants. The criteria for "best" bank includes growth in assets, profitability, strategic relationships, customer service, competitive pricing and innovative products. Although Global Finance notes that the environment remains "unusually challenging" for banks around the world, they contend that as customers are demanding "superior competence" from banks, these institutions are best positioned to deliver compared to competitors.
So what are the best banks in each regional emerging market? Click ahead to find out!
By Paul ToscanoPosted 26 March 2010
Standard Chartered, based in London, operates in 13 countries on the African continent and is considered a leader in many of the world's most dynamic markets. Listed on the London and Hong Kong stock exchanges, as of March 26th 2010, the company has seen its stock price rise by over 41% in the past 52 weeks. According to the company, it has seen its income and profit double over the last few years, fueled primarily by organic growth supplemented by acquisitions.
Another London-based bank took the top spot for its exposure to the key Asian emerging market. HSBC maintains 1,161 offices in the Asia-Pacific region, including 170 in China, 330 in Hong Kong, 150 in India, 211 in Indonesia 27 in Singapore and 51 in Malaysia. HSBC is listed on the New York, London, Paris, Hong Kong and Bermuda stock exchanges the company estimates it is held by around 220,000 shareholders in 119 different countries.
In the emerging markets of Central and Eastern Europe, Austrian bank RZB/Raiffeisen took the top spot, according to Global Finance. The bank's balance sheet was estimated at over $201.8 billion (€151.3 billion), making it the third-largest bank in Austria. Although the bank has a multinational presence outside Europe, it considers Central and Eastern Europe its key market, having presence in 17 different countries, serving 15 million customers from 3,100 locations. RZB/Raiffeisen reported consolidated profits after tax of €433 million ($577.75 million) in 2009 and reports €12.3 billion ($16.4 billion) in cash on its balance sheet.
In the emerging markets of Latin America, Spain-based Banco Santander takes the top spot among banks in the region. In 2009, the Santander Group was the fourth largest bank in the world by profits and eighth by market capitalization and is listed on the New York, London and Madrid Stock exchanges. Santander has presence in Brazil, Argentina, Puerto Rico, Chile, Colombia, Peru, Uruguay and Mexico.
The important developing economies of the Middle East will offer complex opportunities for investment and growth over the next decade, and the National Bank of Kuwait (NBK) has been identified by Global Finance as the top bank in the region. NBK had net profits of $925 million and held $45 billion in assets, according to the bank's 2009 year-end financial statements.