BOCHK, BIBD, Public Bank and Vietcombank named strongest banks in latest TAB Global 1000 ranking in Beijing

Bank of China (Hong Kong), Bank Islam Brunei Darussalam (BIBD), Malaysia's Public Bank, and Vietcombank emerged as the strongest banks in their respective countries or markets in the 2024 TAB Global 1000 Strongest Banks ranking. Announced at a special dinner and presentation ceremony in conjunction with Sibos in Beijing, the annual ranking evaluates the strength of banks worldwide based on their resilience, balance sheet management, and ability to meet short-term obligations. Among the top 100 strongest banks of the 1000 globally, 40 are from Asia Pacific, including Bank of China (Hong Kong) and Public Bank.

Bank of China (Hong Kong) ranks as the strongest bank in Hong Kong in 2024, demonstrating its solid financial performance and steady loan growth. In 2023, it achieved a return on assets of 0.9% and a cost-to-income ratio of 25.4%, both surpassing industry averages. The bank's non-performing loan ratio held at just 1%, was supported by a total capital ratio of 21% and liquidity coverage of 207%, showcasing its financial resilience and discipline.

Public Bank leads Malaysia’s ranking as the country’s strongest bank in 2024, showcasing its consistent profitability and strong asset quality. As a domestic leader in loans and deposits, it maintained a non-performing loan ratio of 0.6% in 2023, well below the industry average. Its cost-to-income ratio of 33.7% further exemplifies its resilience, efficient business model, differentiating itself in the TAB Global evaluation.

Vietcombank was named the Strongest Bank in Vietnam in 2024, for its superior asset quality, strengthened capital buffers and impressive profitability.  With the lowest non-performing loan ratio of 1% and the highest provision coverage among peers, Vietcombank outpaced the industry’s 1.8% average. Its return on assets and equity of 1.9% and 22%, respectively, reflect robust financial health and sustainable growth.

Bank Islam Brunei Darussalam (BIBD) was recognised as Brunei’s strongest bank in 2024, reflecting its resilience through prudent risk management and strategic growth. In 2023, BIBD’s capital adequacy ratio reached 18.5%, while its non-performing financing ratio improved to 1.8%, outperforming the 2.6% industry average. The bank’s strategic focus on growth contributed to a return on assets and equity of 1.6% and 13.5%, respectively.

Global banks’ performance

In the 2024 ranking, banks’ strength improved globally, with the top 1000 banks’ average score rising to 6.89 from 6.78. North American banks lead in the strength ranking, scoring 7.05, followed by Asia Pacific banks at 6.98 and banks in the Middle East at 6.92. Conversely, European, South American, and African banks scored below the global average.

The average return on assets (ROA) increased from 0.75% to 0.81%, driven by higher interest rates. Regions like Africa saw the highest ROA, while Asia Pacific registered the lowest at 0.73%.

Cost efficiency also improved globally, with the average cost-to-income ratio (CIR) falling to 49.7%. North American banks’ CIR rose, while banks in the Middle East achieved the lowest at 32.9%. Asset quality remained stable, with the average non-performing loan (NPL) ratio at 1.6%. Liquidity levels were mostly steady, and transparency improved as more banks disclosed liquidity coverage ratio (LCR) and net stable funding ratio (NSFR) data.

Asia Pacific banks’ performance

This year, 40 Asia Pacific banks rank among the global top 100, down from 48 in the 2023 ranking. China leads the region with the highest score, followed by Singapore, Hong Kong, and Indonesia. While Chinese banks excel in scale and asset quality, banks in Hong Kong, Singapore, and Indonesia lead in risk profile and liquidity. China Merchants Bank tops the region, with OCBC Bank, Bank Mandiri, and Bank of China (Hong Kong) ranking 10th, 16th, and 17th, respectively.

About the TAB Global 1000 Strongest Banks ranking

The TAB Global 1000 Strongest Banks ranking evaluates the largest 1000 banks globally by asset size, focusing on their financial strength. This ranking uses a detailed and transparent scorecard, assessing banks on six balance sheet-related criteria: scale, balance sheet growth, risk profile, profitability, asset quality, and liquidity, covering 14 specific factors. The assessment covers both banks and financial holding companies with significant activity in commercial banking. The evaluation does not include central banks, policy banks or finance companies. Bank annual reports are the main sources of data. In the absence of up-to-date annual reports, banks’ financial results are sourced directly, for the preceding financial year, eg. the 2024 ranking is based on financial reports and results from the 2023 financial year, with a March 2024 cutoff.

For the complete ranking of the World's 1000 Strongest Banks, visit:
https://tabinsights.com/ab1000/strongest-banks-in-the-world

For more insights into the World’s 1000 Strongest Banks:
https://tabinsights.com/article/jpmorgan-chase-leads-globally-with-strong-asset-quality--liquidity-and-enhanced-profitability