The Banker's panel of judges salutes the best banks in 149 different countries based on their performances over the past year.

Please click here to see the full list of Country Winners.

Ammar Husain, CEO, Standard Chartered Bank Afghanistan

Ammar Husain, CEO, Standard Chartered Bank Afghanistan

Afghanistan

Standard Chartered Bank Afghanistan

Starting operations in 2004 and still the only international bank in Afghanistan offering a wide range of products and services, Standard Chartered Bank Afghanistan is a profitable wholesale outlet whose main goal is to support the reconstruction of Afghanistan by serving the banking needs of the government, donor community and diplomatic missions.

The bank is understood to enjoy a market share of more than 75% in the above target segments, with a deposit base of more than $190m. Total assets at the end of 2009 were $202m, up one-third on the previous year, with net profits in 2009 down 13.8% at $5.1m but still providing a very comfortable 43.9% return on equity and an acceptable cost-to-income ratio of 39%, comparable with previous years.

Standard Chartered remains the preferred banker to 75% of donor agencies in the country, who use the bank as a partner in the development efforts of the international community as well as providing all their banking requirements. 

The Banker Awards 2010 

Due to the rampant opium trade, the bank continues to remain extremely vigilant in its 'know your customer' (KYC) and anti-money-laundering requirements and works closely with the Financial Intelligence Unit of the Afghan central bank; the regulator considers that Standard Chartered has the most robust KYC regime in the country.

Despite a very grim security situation, high corruption, criminal activity such as armed robberies and an inefficient legislature, the bank continues to expand its business, with assets in 2009 almost double those of 2007, while also ensuring that customers receive the best services.

Standard Chartered Bank Afghanistan's CEO, Ammar Husain, says: "Standard Chartered has done well in terms of asset mobilisation, profits from operations and servicing a diverse group of clientele. As in the past, it has maintained the highest standards of governance and service delivery practices."

Seyhan Pencapligil, CEO, Banka Kombetare Tregtare

Seyhan Pencapligil, CEO, Banka Kombetare Tregtare

Albania

Banka Kombetare Tregtare

The Turkish-owned Banka Kombetare Tregtare was ready to trade high margins for safety in the turbulence of 2009, focusing on building the highest possible liquidity levels to protect it against global market conditions. The bank expanded its market share in customer deposits by 2% to a record high of 16.7%.

By the first half of 2010, the bank's return on equity had almost doubled, back towards its long-term average of 28%, suggesting that the conservative strategy of the previous year had been vindicated. At the same time, non-performing loans were kept well in check, at 5%.

"Our greatest achievement for the past year has been that we have been able to return to our bank's past 10-year annual average return on equity," says chief executive officer Seyhan Pencapligil. "This was especially difficult this time around, against the background of the economic crisis, as well as increased investments due to retail and e-banking initiatives.

"More importantly, the bank's high profitability has been accompanied by an increased market share that stands at an all-time high of 17.5%."

Banka Kombetare Tregtare's e-banking offering, launched in 2010, has given the bank first-mover advantage in Albania to stimulate customer growth further. And the strength of its balance sheet allowed the bank to expand lending even in the toughest times of 2009, in contrast with its larger rivals.

"In a small country with developmental-phase infrastructure and very low telephone and internet penetration, our project to offer a full product range in retail and e-banking was challenging, but it has been achieved successfully nonetheless.

"The fact that we have been able to beat competition coming from the big international banking groups present in Albania attests to our successful business model," says Mr Pencapligil.

Kamel Driss, managing director, Citibank Algeria

Kamel Driss, managing director, Citibank Algeria

Algeria

Citibank Algeria

Banks face few tougher challenges than dealing with difficult demands from governments, but Citibank Algeria sealed 2009 by successfully using its global network to assist its clients in adjusting to complex legislation that was introduced in 2009 by the Algerian authorities.

The new laws mean that all imports of goods have to be financed through letters of credit (LOC) only, and Citibank Algeria has met this demand by launching products such as Citidirect for Trade to automate the LOC process.

The bank also introduced trade loans to service clients' short-term cash flows and trade needs.

Despite suffering a drop in net profits of 21% from 2008 to about $35m in 2009, Citibank Algeria has retained its customer base in an often difficult environment.

The bank has also managed to keep abreast of changes in the international arena and works to ensure that Algerian clients benefit from Citi's global expertise in all areas.

Among its numerous initiatives, Citibank Algeria launched webinars in French and English to provide assistance to local clients with the changes in legislation.

Kamel Driss, Citibank Algeria's managing director, says: "Positioning ourselves to be the number one bank for our clients in Algeria as the world economies recover from the global financial crisis, we will continue to provide our clients with best-in-class products and services and added-value solutions. We also plan to grow our market share by expanding our target market and branch network.

"We see opportunities in innovative and technologically driven treasury and cash management products and plan to develop strategic partnerships with some of the large public sector banks for wider and local market access and to participate actively in the growth of the Algerian economy and the modernisation of the financial sector."

Josep Peralba, CEO, Crèdit Andorrà

Josep Peralba, CEO, Crèdit Andorrà

Andorra

Crèdit Andorrà

Andorra's adoption of the Organisation for Economic Co-operation and Development's (OECD's) standards for tax information have helped further Crèdit Andorrà's ambitious internationalisation plan.

This plan has involved expansion into Latin America (Panama, Mexico and Uruguay) and greater consolidation in Europe, where Crèdit Andorrà strengthened its asset management business by building the funds going into its Luxembourg and Spanish Sicavs (collective investment schemes) and opened three new branches in Spain through its insurance holding company. In Switzerland, Crèdit Andorrà strengthened its fund management entity by doubling funds under management in 2009.

The bank, which is 21% owned by its employees, remains firmly committed to supporting its customers in their international expansion plans by providing the products and services needed worldwide. The group has maintained its leading position in Andorra in terms of profits and market share, and a healthy solvency ratio of 23.4%.

Josep Peralba, chief executive officer of Crèdit Andorrà, says the biggest challenge of 2009 was finding how to continue to grow sustainably while creating value for stakeholders. "Faced with an international context marked by recession and a paradigm change in Andorran banking due to having to adapt to the international standards established by the OECD, we have been able to strengthen the confidence and trust of our customers, seeing that we are a benchmark in terms of solvency, with a Tier 1 capital ratio of 19.61% along with liquidity ratio of 71.06%," he says.

"The challenge of going international has been satisfactorily met by carefully and prudently analysing every business opportunity so that each is in keeping with the sustainable growth expectations of the group."

Crèdit Andorrà has also implemented a new core banking system, which will be rolled out to all its businesses worldwide.

José Reino da Costa, CEO, Banco Millennium Angola

José Reino da Costa, CEO, Banco Millennium Angola

Angola

Banco Millennium Angola

The judging panel established Banco Millennium Angola (BMA) as worthy of this year's accolade with the simple words: "The bank has made good improvements."

BMA embarked on a straightforward mission: to develop a universal bank operation covering both retail and corporate customers. It also boasts strong financials with net profits up a staggering 249% in 2009 to $20.12m.

The bank's main efficiency and return indicators reported significant improvements with the cost-to-income ratio going from 71.5% in 2008 to 62.2% in 2009, despite heavy investments made by the bank. A return on equity of 13% as well as a return on assets of 2.3%, up from 1.1% in 2008, confirmed the bank's strong position in the country's financial landscape.

In a bid to improve shareholders' return, BMA went on an aggressive expansion plan to develop the bank's branch network and target effectively the different customer segments.

It also introduced a sales incentive system to boost revenue and sales performance; embarked on a comprehensive revision of its pricing schedule and interest and foreign exchange rates to customers; all this, combined with an ongoing monitoring of the market, ensured an optimum positioning of the bank towards its competitors.

Over the past 15 months, BMA has released several innovative products and services, leading to a faster increase in its market share.

BMA introduced the first dual-currency structured term deposit in Angola and implemented a new streamlined point-of-sale rollout strategy.

Oil-producing Angola's economy was not spared by the global crisis, yet BMA managed to impress the judges by remaining innovative and in tune with customer demands to deliver an invaluable service and shareholder satisfaction.

Enrique Cristofani, Argentina country head, Santander Rio

Enrique Cristofani, Argentina country head, Santander Rio

Argentina

Santander Rio

Despite the worst drought to strike South America in decades and the continuing fallout from the global financial crisis, Santander Rio managed to grow its net profits in 2009 by more than 200% from the previous year, while its Tier 1 capital and assets also expanded by 49% and 18%, respectively. Its reported return on equity was an impressive 58.8%, while cost to income decreased significantly to 38.7% from last year's 52.8%.

Santander Rio's acquisition of BNP Paribas's retail operations in Argentina was also of note as it gave the bank a valuable - if not particularly large - portfolio of clients, including a number of affluent individuals and small businesses. The deal also gave Santander additional 17 branches.

Thanks to its continuous growth efforts, Santander Rio reports that it now holds an impressive 10% of Argentina's loans to the private sector and 9.5% of the deposits from the private sector, markets that are still highly underdeveloped despite the country's relatively high level of access to banking.

"Argentina has one of the lowest ratios of loans to gross domestic product [GDP] and deposits to GDP among Latin American countries, despite the fact that about 70% of the economically active population has a bank account," says Enrique Cristofani, Santander Rio's country head for Argentina. "In 2011, Santander Rio aspires to lead the growth of the lending market in Argentina, as it has done in the past [few] years. We believe - and we are seeing it in the second half of 2010 - that lending in Argentina will grow substantially in 2011 and the following years."

The bank sees great opportunities for the growth of financial intermediation for greater access to credit for families and businesses. "In that sense, it will be critical to grow our savings and time-deposit businesses - which have remained very low in recent years - since these are the main source for funding for loans in the country," says Mr Cristofani.

Artak Hanesyan, Chairman of the management board, Ameriabank

Artak Hanesyan, Chairman of the management board, Ameriabank

Armenia

Ameriabank

A merger with Cascade Bank and a string of deals to secure funds from development finance institutions have propelled Ameriabank into the top tier of Armenian banks. The bank provides services ranging from consumer loans to advising on initial public offerings and merger and acquisition (M&A) activity, and is owned by the Russian investment bank Troika Dialog.

While assets more than doubled in 2009, the bank's professionalism and investment in developing sophisticated risk management systems have kept non-performing loans consistently below 1% - compared with a peak of more than 10% for the sector as a whole in 2009-10. As a result, profits rose by more than 90% in 2009, and this growth rate continued in the first three months of 2010.

"We owe our steady growth to our united team of more than 350 mostly Western-educated professionals. The bank is committed to contributing to the development of the Armenian banking industry by ensuring compliance with high international standards of corporate governance, and the application of innovative banking technologies and servicing," says the chairman of the management board, Artak Hanesyan.

Financing of more than $85m for Ameriabank's rapid growth has been secured from the International Finance Corporation, the Dutch development finance company FMO, Germany's DEG and the European Bank for Reconstruction and Development. These programmes are mostly focused on financing for renewable energy infrastructure, or small and medium-sized enterprise (SME) lending schemes.

"In the coming year, the bank is prioritising intensive work towards the diversified growth of its client base, continued active renewable energy and SME financing, the start up of regional expansion and the propagation of M&A and asset management services," says Mr Hanesyan.

Mike Smith, CEO, ANZ

Mike Smith, CEO, ANZ

Australia

ANZ

ANZ Banking Group has established its credentials as the market leader in the Australian market with an impressive 25% surge in Tier 1 capital last year, along with a 1.8% cut in its cost-to-income ratio.

After making significant investments in organic growth, coupled with a number of strategic acquisitions, ANZ has almost quadrupled its number of branches in Asia, more than trebled its customer base to almost 3 million customers and out-performed the Australian banking sector in revenue growth.

The bank also showed stronger revenue momentum than its peers as it grew margins and delivered better volume growth in mortgages and commercial lending. ANZ remained strong throughout the global financial crisis. It is delivering on a super-regional strategy that differentiates it from its domestic peers, linking emerging Asian markets with Australia and New Zealand. ANZ recently received preparatory approval for local incorporation in China as well as approval in principle for a foreign bank licence in India.

Mike Smith, chief executive officer of ANZ, says: "Three years after announcing our super-regional ambitions, we are increasingly distinguished by our geographic diversification, which focuses on the world's best-performing economies and the increasing linkages that our personal and corporate customers have with the region.

"In Australia, we are ranked number one for retail customer satisfaction and have gained market share in key segments. We were also named the leading sustainable bank globally by the Dow Jones Sustainability Index for the fourth consecutive year. In our most recent results we posted a full-year underlying profit of $5bn, up 33% on the previous year, which demonstrates that we have real momentum in every area of our business.

"In 2011, we expect Asia [excluding Japan] to grow at about 8%, compared with less than 2.5% in the US and Europe."

Peter Bosek, member of the managing board of Erste Bank Österreich

Peter Bosek, member of the managing board of Erste Bank Österreich

Austria

Erste Bank Österreich

The winner of last year's award, the second largest retail bank in Austria has not rested on its laurels but has continued with its retail expansion strategy that has been in place since it went public in 1997. Now, 13 years later, Erste Bank has increased its staff tenfold, to 50,000, its branches to 3200 and its customer base to 1.75 million.

Furthermore, it has remained profitable through the crisis. In 2009, operating profit increased 25.8%, compared with 2008, to €3.77bn. Savings deposits held by Erste Bank in Austria increased from €24.1bn to €26.8bn.

The bank has continued to innovate. Earlier this year, in a single move Erste Bank and Sparkassen effectively increased its national banking network in Austria by 170 new branches, or 'banking stops', through a strategic partnership with oil and gas corporation OMV. From April, customers could not only fill up with fuel but also put cash on their cards at OMV petrol stations, opening up a whole new sales channel for the bank.

The savings bank family now boasts some 3 million customers and operates more than 1000 branches in Austria.

Peter Bosek, member of the managing board of Erste Bank Österreich, says that despite declining banking relationships in Austria, Erste Bank acquired 50,000 new customers in 2009. He adds: "Despite the crisis, Erste Bank almost doubled its profit after tax, to €252.6m [up 98.1%, counting only the business in Austria] and reduced total costs by 4%. The main driver behind this development is the retail business and customer growth."

Azerbaijan

International Bank of Azerbaijan

State-owned International Bank of Azerbaijan (IBA) continues to dominate the country's local banking system thanks to its role handling the country's hydrocarbon wealth and providing payments systems for government transactions such as social security and pensions.

The bank still commands more than 30% of the country's bank capital and more than 40% of banking assets and deposits, and global financial market volatility has helped to entrench its position. The issue of a $130m three-year Eurobond in October 2010, something that would be difficult for most privately owned Azerbaijani banks, confirmed the value of state ownership in boosting IBA's funding position.

In 2009, the bank underwent a management reorganisation, which has helped to bring its cost-to-income ratio down to 62%, from 70% a year earlier. The reorganisation also aims to improve its service network for customers. The bank has become the first in Azerbaijan to migrate its entire customer-payments information system from paper to electronic, cutting processing time considerably. It also introduced mobile phone notifications and is steadily expanding its network of ATMs and information points.

The bank's product base continues to widen and develop - its mortgage programme is gradually being enhanced, and it is rolling out an offering of sharia-compliant products to cater for Azerbaijan's predominantly Muslim population. At the other end of the scale from its broadening retail offering, the bank is also a key player in the burgeoning Azerbaijan project finance market. In 2010, it participated in the country's first alternative energy project, a wind farm.

Paul McWeeney, managing director, Bank of the Bahamas

Paul McWeeney, managing director, Bank of the Bahamas

Bahamas

Bank of the Bahamas

As with many less-diversified economies, the Bahamas was hit hard by the global economic downturn. Two-thirds of its economy relies on the hospitality industry and related activities. Businesses suffered greatly, as did the banking sector that serves them.

In response to this critical situation, Bank of the Bahamas set aside substantial funds for loan loss provisions and acted conservatively, while at the same time continuing to monitor any suitable new business opportunities.

During such challenging times, the bank took a long-term approach and made a $1.2m investment in technology and in various programmes aimed at consolidating customer loyalty and generating higher product demand in the future, once the economic situation improves.

The bank's involvement with the wider Caribbean community was also notable. At the start of the year, when an earthquake devastated Haiti, Bank of the Bahamas joined forces with the Salvation Army to provide help and assigned staff to the production of a televised fund-raising effort that collected $250,000 in pledges, in a country with a population of just over 300,000. The bank's involvement in initiatives to avoid the closure of an orphanage and in education and food programmes are also of note as part of its efforts to engage with and support the local community.

"Several success stories punctuated a year marked by challenges," says Bank of the Bahamas managing director Paul McWeeney. "The bank finalised technology and comprehensive training, moving to a new integrated systems platform, freeing up staff time to devote to customer service and opening the door to new business opportunities. Secondly, despite economic challenges, the bank's performance was strong, with solid net earnings and record total assets. Of special pride was our bank's response to community needs."

Adel El-Labban, group chief executive officer and managing director, Ahli United Bank

Adel El-Labban, group chief executive officer and managing director, Ahli United Bank

Bahrain

Ahli United Bank

Despite difficult market conditions, Ahli United Bank (AUB) has continued to maintain its vision of creating a premier pan-Gulf-Middle Eastern diversified financial group centred on commercial and retail banking, while undertaking expansion in various initiatives and producing successful results.

While conservative and prudent provisioning led to a 21.5% decline in net profits in 2009 to $200.7m, the bank still recorded a healthy return on equity of 9.6%. And in the first nine months of 2010, net profits have risen again to $201.1m.

Following its strategy of expansion and diversification, AUB's Kuwait subsidiary, Bank of Kuwait and the Middle East, successfully converted itself into a sharia-compliant Islamic bank, AUBK, from April 1, 2010, emphasising the group's range of Islamic banking products and services. A joint venture with the UK's Legal & General also emphasises AUB's insurance operations. The early pre-payment of a syndicated loan amply demonstrated AUB's strong liquidity position, while the bank has had its strong ratings reaffirmed.

Key 2009 initiatives included expansion in Egypt and Libya. AUB increased its shareholding in AUB Egypt from 35.3% to 85.1%. This incremental investment of $203m reflects AUB's commitment to the potentially high-growth economy of Egypt and further expands AUB's regional presence. Likewise, permission to acquire a 40% stake in Libya's United Bank for Commerce and Investment for $54m provides further growth potential in an expanding market.

Adel El-Labban, group chief executive officer and managing director, says: "AUB continues to follow and successfully execute its strategy to create a premier pan-Gulf-Middle Eastern diversified financial services group model centred on commercial and retail banking, private banking, Islamic banking, asset management and life insurance, with an enhanced sharia-compliant business focus and contribution."

James F McCabe, CEO, Standard Chartered Bank

James F McCabe, CEO, Standard Chartered Bank

Bangladesh

Standard Chartered Bank

Standard Chartered Bank's Bangladesh operations had a year full of initiatives in 2009, in areas as diverse as auto loans, personal loans, Islamic banking and mortgages, plus the country's first onshore interest-rate swap with a major cement producer.

The bank's capital markets division was recently mandated to raise a Tk2bn ($28m) subordinated fixed-rate bond for Dhaka Bank and another for Tk2.5bn for National Bank. The bank also arranged the country's largest microfinance deal for $55m. It was a year of strong performance for Standard Chartered across the board, with Tier 1 capital strengthened by 15.9%, a 13.4% increase in assets, net profits up 25.9% and return on equity boosted to 30.9%. This was achieved in the midst of unprecedented market turbulence by improving efficiency and managing risks proactively.

Standard Chartered now has a large network of 26 branches, 71 ATMs and six banking kiosks. It remains the only foreign bank in Bangladesh with a presence in six major cities, along with offshore banking units in two export processing zones. It has a sweeping range of consumer products and is also the first in the country to have rolled out Islamic banking solutions.

James F McCabe, chief executive officer of Standard Chartered Bangladesh, says: "[Last year] was challenging in Bangladesh due to the effects of the global financial crisis on liquidity and risk issues, increasing competition from local banks and changes in the regulatory framework. Growing the business required superior risk and liquidity management along with a strong capital base. We are the country's oldest and largest foreign bank [with 55% of the market] and the third largest overall. Despite the many challenges, [we] reported record profits [and were] one of the country's top three corporate taxpayers.

"We are very optimistic about Bangladesh and its prospects. We plan to continue as the market leader in providing financial solutions, as well as in product and service innovation."

Kevin Teslyk, managing director, Scotiabank (Caribbean East)

Kevin Teslyk, managing director, Scotiabank (Caribbean East)

Barbados

Scotiabank

Scotiabank focused on maintaining the high quality of its loan portfolio while containing costs throughout 2009. The successful execution of these policies contributed to the bank's sound financial performance.

In addition, Scotiabank implemented a customer assistance programme, which provided payment-relief options to customers who experienced loss or reduction of income as a result of the difficult economic conditions. Product pricing was also readjusted on all retail products to align lending practices better with individual customers' risk profiles.

Despite the troubled economic situation, Scotiabank did not lose sight of its ongoing aim of engaging with new client segments. It introduced a new product targeted at the 18- to 30-year-old age group, based on online tools and including rewards from certain third-party vendors.

The bank also launched a new credit card co-branded with a network of retailers and a series of lending and deposit products for the small and medium-sized enterprise (SME) sector. Supporting SMEs had been identified as a key objective in 2009 and Scotiabank partnered with the Barbados Small Business Association for a series of events and a seminar to engage with this client segment.

Furthermore, the introduction of an automated monitoring system allowed the bank to manage reputational risk better and reduce manual work at branch level.

On the corporate social responsibility front, Scotiabank continued its engagement with programmes to fight HIV/AIDS through educational campaigns for young people. The bank's alliance with the Caribbean Broadcast Media Partnership on this topic saw the number of countries adhering to regional testing days growing from six in 2008 to 14 in 2009 and 17 this year.

Nadezhda Ermakova, chair of the management board, Belarusbank

Nadezhda Ermakova, chair of the management board, Belarusbank

Belarus

Belarusbank

A leap in efficiency and productivity saw the cost-to-income ratio at Belarusbank slashed by more than 20% in 2009, to reach 55%, while net profit per staff member jumped 53%. This is an impressive performance from a state-owned bank that is the second largest in Belarus. It enabled the bank to more than double its net profit, to about $140m, in a tough year when the Belarusian economy stagnated at 0.2% gross domestic product growth.

"While the impact of the world financial crisis was not that significant on the Belarusian economy, its consequences still had some influence on business processes, including Belarusbank's activities as part of the national economy," says Nadezhda Ermakova, chair of the management board of Belarusbank.

The bank remains the dominant force in Belarusian corporate lending, with a market share of 67.5% and a 3.3% increase in corporate client numbers since the start of 2009. Ms Ermakova attributes this rise to the accessibility of its nationwide branch network and a high-quality service that helped clients adapt to the tightened economic conditions.

"In dealing with our clients, we had to identify problem areas and find new approaches and solutions. For example, the bank faced an increasing demand for consulting and for providing services to our customers to maintain the stability of their operations. As a result, we were able not only to support and retain our customer base but also to expand it," she says.

Belarusbank has also raised its international profile with a string of trade finance agreements and was the first bank in Belarus to re-enter the syndicated loan market in 2010, with a $60m deal. Ms Ermakova says it plans to follow the sovereign Eurobond debut of September 2010 with one of its own next year.

Cheikh Tidiane N'diaye, managing director, Bank of Africa Benin

Cheikh Tidiane N'diaye, managing director, Bank of Africa Benin

Benin

Bank of Africa Benin

Bank of Africa Benin (BoA Benin) ranks first among the country's banks by all indicators and continues to develop in all areas. It grew its Tier 1 capital base by 12.7% between 2008 and 2009 and reported net profits of CFA Fr6584m ($13.7m).

As the only Beninese bank listed on the BRVM regional stock exchange, BoA Benin has undertaken various innovative measures to maximise return to shareholders. It aims to diversify sources of foreign currencies to finance foreign exchange operations and increase deposit bases from customers through a proactive savings campaign and cash-collection measures.

In a bid to cater to the country's small but emerging middle class, the bank has signed up major loan contracts with key actors in the mobile phone, leisure and agribusiness sectors.

All these factors have contributed in making BoA Benin the bank of choice for the judging panel, who noted its efforts to reach out to new customers and ensure that existing ones remain satisfied.

Despite operating in a country where more than 40% of the population remains unbanked, BoA Benin has endeavoured to improve its accounting and IT systems as well as improving its asset liability management structure and general efficiency. In the past year alone it has opened nine new branches as well as launching new consumer products.

BoA Benin is the country's first bank to operate in all market segments and tasks itself with the "duty of accompanying all agents in their development efforts, being by far the largest medium- and long-term lender in the country," says managing director Cheikh Tidiane N'diaye.

Philip Butterfield, CEO, HSBC Bank Bermuda

Philip Butterfield, CEO, HSBC Bank Bermuda

Bermuda

HSBC Bank Bermuda

HSBC Bank Bermuda's balance sheet and capital position remained strong throughout the recent period of global economic uncertainty. The bank introduced new products and initiatives to cement its relationships with existing clients and worked with other members of the HSBC group to leverage each others' capabilities by bringing economists and business experts from other jurisdictions to Bermuda and share their knowledge with local management.

The bank launched a captive insurance initiative - this segment is a growing feature of Bermuda's financial centre - and an international lending programme that moved HSBC Bank Bermuda's excess liquidity to the group's subsidiaries in Latin America that required liquidity. The bank also increased the number of premier and wealth management clients by 30% for the second year running and increased the client base for its Lifeplan investment programme for retail customers by 50%.

The group this year launched its HSBC Advance account for personal customers. This product will broaden the bank's 'bancassurance' range. HSBC Bank Bermuda is increasing its focus on insurance by providing both local capabilities and access to HSBC group's facilities around the world.

"We intend to take advantage of HSBC Bank Bermuda's strong balance sheet and capital position to provide world-class products and access to HSBC Group's capabilities," says chief executive Philip Butterfield.

"We will continue investing in our staff. With more transactions being handled electronically, the bank now deploys more staff to developing relationships with clients, helping individuals with their wealth planning and corporates with growing their businesses. We will continue to partner with other members of the HSBC Group to the mutual benefit of our customers, while continuing to build and maintain our leadership position within the Bermuda community."

Bolivia

Banco Mercantil Santa Cruz

The low interest rates in Bolivia forced Banco Mercantil Santa Cruz to focus on providing additional services to retain customers and to establish loyalty reward programmes, such as rewards for internet transactions, credit and debit card purchases, the timely repayment of loan fees and deposit increases.

These initiatives were successful and the bank closed 2009 with a healthy $32.9m net income - reduced from the previous year but still providing shareholders with more than 25% return on equity - and with $1.77bn in assets, an almost 12% year-on-year increase.

The bank also expanded its branch network by 10%, reaching 69 offices, a record in the country. Its ATM network has also grown to 215 transaction points, 20% more than last year.

Banco Mercantil is proud of not having made any significant write-offs in 2009. Although still high, the total of non-performing loans (NPLs) has been steadily decreasing and reached a low of 6.33% in 2009. Also, provisions for loan losses account for the entire NPL portfolio and the vast majority of these are covered by guarantees.

"The challenge and perhaps the biggest opportunity for the future is to increase service revenues without neglecting our core objective of increasing the loan portfolio," says Banco Mercantil's executive vice-president, Alberto Valdes.

"Today the liquidity of the system has tightened our financial spreads; we need to improve the income [deriving from banking services] in order to compensate for the forthcoming decrease in interest income. One future important [goal] for our institution is the implementation of technology solutions for developing services that allow our customers to have easy access to online transactions and to other alternative channels."

Berislav Kutle, CEO, UniCredit in Bosnia-Herzegovina

Berislav Kutle, CEO, UniCredit in Bosnia-Herzegovina

Bosnia-Herzegovina

UniCredit Bank

Bosnia-Herzegovina experienced a very difficult year in 2009, in which gross domestic product contracted by 2.8%. This caused UniCredit's assets and profits to stagnate.

But the group's commitment to Bosnia-Herzegovina was made clear by a 9% increase in Tier 1 capital and by significant investments in technology, branch networks and the rebranding under the UniCredit name. Profits began to climb again in the first half of 2010.

"In the past year, UniCredit Bank managed to maintain safety and stability at respectable levels. We have also managed a well-balanced credit portfolio and were strongly oriented towards client satisfaction. In spite of the still-difficult economic environment, we managed to realise a net profit above the total banking sector average, we are highly capitalised, recorded good liquidity and have achieved a high level of both retail and corporate client satisfaction," says the bank's chief executive officer, Berislav Kutle.

UniCredit's 'm-ba' system was the first mobile banking offering in Bosnia, and its ATM and point-of-sale network continues to expand, providing more than 5000 outlets across the country. Mr Kutle is not intending to rest on his laurels, looking to develop new retail banking products and services to fill the gaps identified by market research.

At the other end of the scale, the bank helped arrange the Bosnian government's first syndicated loan facility. Mr Kutle says the public and large corporate sectors will be important client segments in 2011.

"In the coming period we plan to get involved in the state's capital investment projects and also to provide strong support for the growing small and medium-sized enterprise segment," he says.

"The focus of our corporate banking will be on a growth strategy, supporting all major industries and their financing needs."

Wilfred Mpai, acting managing director, Barclays Bank of Botswana

Wilfred Mpai, acting managing director, Barclays Bank of Botswana

Botswana

Barclays Bank of Botswana

The global financial crisis, which affected Botswana's mining sector, had ripple effects across all segments of the country's economy. While Barclays Bank of Botswana (BBB) did not directly provide significant loans to the mining sector, it still felt the pressure through its exposure to satellite companies dependent on mining activity.

Nevertheless, BBB maintained its market dominance and increased its customer base, posting solid results.

Judges were impressed by the bank's overall figures. Its Tier 1 capital grew by 21% between 2008 and 2009, and it added P95m ($14m) to its profit before tax and P404m to its loans and advances to customers.

A key strategy implemented in early 2009 was to maintain the quality of the commercial book by aligning the bank's risk management procedures with more efficient customer relationship management. As a result, the bank's management costs eased, leading to an increase in profit before tax figures.

BBB launched several products designed to improve its customer service, such as the Lekgolo savings account, which requires the investors to put in as little as P100 to open a savings account.

Mobile phone banking, under the brand name Hello Money, was also successfully launched in 2009 and proved to be both practical and innovative.

While the aforementioned products target the middle-income segment of the population, the bank chose to cater for low-income earners as well. Its Isago initiative aims to render banking accessible to the unbanked, who are still numerous in Botswana.

BBB is the largest bank in Botswana with 53 branches and it employs 1400 people. It remains a trusted brand in the country and has shown, despite the ongoing challenging environment, innovation and strong business acumen.

Aldemir Bendine, chief executive, Banco do Brasil

Aldemir Bendine, chief executive, Banco do Brasil

Brazil

Banco do Brasil

The international financial markets are now used to the wonders of Brazil, highlighted by this year's world-record $70bn equity issue by state-controlled oil company Petrobras, and the growth and ambition of its banks, both within and beyond its national borders.

Banco do Brasil's continued expansion efforts to serve its clients abroad have been impressive. The bank has this year taken a majority stake in Banco Patagonia of Argentina as well as expanding in the US, while continuing to grow at home with a series of Brazilian acquisitions in the past two years. These were the $1.9bn purchase of a 50% stake in Banco Votorantim, the $3bn acquisition of Banco Nossa Caixa in 2009 and earlier deals relating to the state government-owned Banco do Estado de Santa Caterina and the smaller Banco do Estado do Piaui.

"Banco do Brasil is walking through a new phase in its history," says chief executive Aldemir Bendine. "We intend to take advantage of our [programme to service] fast-growing businesses and diversify our revenue through loan operations, strategic partnerships and the bank's internationalisation."

Despite the global financial crisis, Banco do Brasil also grew its loan portfolio by more than 33% in 2009 compared with the previous year. Focus on loan quality and risk management was crucial in a year characterised by Brazil's phenomenal international corporate expansion. The bank closed 2009 with an impressive 10.15bn reais ($6bn) profit, a 15% year-on-year increase, while also expanding its assets by almost 36%, confirming its position as the largest bank in Latin America.

"In 2009, the strategy of Banco do Brasil was based on an anti-cyclical procedure," says Mr Bendine. "We matched our state-controlled bank role with the expansion of [Brazilian] businesses, supporting their activities and strengthening the relationship with our customers. This was a huge challenge, especially as we could not let this growth strategy lead to a deterioration in our assets."

Pierre Imhof, general manager, Baiduri Bank

Pierre Imhof, general manager, Baiduri Bank

Brunei

Baiduri Bank

With a 14.9% boost in net profits in 2009 and Tier 1 capital up 18.4% in the same period, Brunei's Baiduri Bank ranks as one of Asia's most efficient banking groups.

The bank has placed its strategic focus on enhancing shareholder value by creating a common service platform and synergy between business units to deliver strong financial performance in a challenging environment. Baiduri says it has used strategic positioning and partnerships with international brands to build a global presence.

The bank says its knowledge of the local market, responsiveness to market changes, product innovation and integration have contributed to the bank's success in 2009. In addition, investment in technology has continued apace. Last year the bank consolidated its servers using Blade technology, storage area networks and virtualisation. The result is a more agile service to the bank and its customers, along with extra levels of back-up, quicker disaster-recovery activation and more efficient data centres.

Pierre Imhof, general manager of Baiduri Bank, says: "This is the seventh time since 2002 that we have been named bank of the year for Brunei. Our strong desire and willingness to continually reassess organisational goals, realign priorities and streamline our processes and our responsiveness to market changes have contributed to our success. Another crucial factor is the consistent strong leadership provided by a management team with a proven track record, strong execution and unrivalled local knowledge.

"All these, together with the ability to offer a complete and diversified range of products and services to suit individuals, companies, government and the public under one roof created the winning combination to achieve another successful year. I thank our customers, employees and shareholders for their confidence and support, without which we would not have become the award-winning bank we are today."

Violina Marinova, chair of the management board and CEO, DSK Bank

Violina Marinova, chair of the management board and CEO, DSK Bank

Bulgaria

DSK Bank

DSK Bank, owned by Hungary's OTP, maintained a return on equity of 12.9% in 2009, well above average for the Bulgarian banking sector. It also remained the country's largest player in retail banking, with a retail loan market share of almost 30%.

A striking 22% Bank of International Settlement capital-adequacy ratio has given the bank a strong foundation on which to build, even in an environment of sharply rising bad-loan provisions.

"We fulfilled our strategic goal - we preserved our indisputable leadership position in Bulgaria's retail banking sector. In 2009, DSK Bank was number one on the loan market, both in personal and mortgage lending, as well as in deposits," says Violina Marinova, chair of the management board and chief executive officer of DSK Bank.

The bank is also the most efficient in the sector, with a cost-to-income ratio of just 36%. A major challenge in 2009 was the rise in funding costs as competition for deposits became fierce in the face of the global liquidity squeeze. Yet the bank successfully navigated these pressures, with deposits rising by almost 10% in 2009.

Ms Marinova believes good access to accounts and information has been crucial in retaining the confidence of customers in volatile markets, with the development of online and 24-hour services a vital ingredient in this formula.

The e-banking platform, DSK Direct, now includes remote application processes for loans and deposits, utility bill payments and a virtual credit card service.

"E-banking is not only a great option for saving time and effort. This service is becoming more and more popular with small and medium-sized enterprises as well as with our corporate clients, since it significantly cuts down their accounting and logistics costs," says Ms Marinova.

Roger Dah Achinanon, managing director, Ecobank Burkina Faso

Roger Dah Achinanon, managing director, Ecobank Burkina Faso

Burkina Faso

Ecobank Burkina Faso

To say that Ecobank Burkina Faso has a difficult task would be an understatement. Operating in a country where almost 90% of the population does not have a bank account and no access to conventional banking, Ecobank continues to surprise the award judges year after year.

The bank's Rapid Transfer product, designed to provide customers with a convenient way of transferring money across Africa, is intended to attract new customers.

To report profits in a globally grim financial landscape is impressive in itself, but Ecobank has managed to increase its net profits by 47%.

Over the past year, the bank grew its Tier 1 capital by 162% and reported net profits of CFA Fr3.44m ($6990).

Thanks to these figures, Ecobank Burkina Faso was able to invest in technology to improve its processes and introduce new online products to facilitate banking for customers. The bank also took the strategic decision to make placements in untaxed securities.

As part of the Ecobank group, Ecobank Burkina Faso has the added advantage of leveraging the resources of the group's wider African network.

Present in more than 30 countries across the continent, the group assists its subsidiaries and clients from Africa and beyond to do business in Burkina Faso.

Cambodia

Canadia Bank

Canadia Bank scores full marks for its success in nearly halving its non-performing loan ratio to 8.2% in difficult market conditions. "We continue to conduct our business in a prudent manner and maintain a high standard of good corporate governance and risk management in order to add more value and branding status for Canadia Bank," says the group's chief financial officer, Ou Sophanarith.

The bank's strategy is to remain focused on providing strong growth in its core business and in interest and fee income, improving asset quality and maintaining a diversified risk portfolio. The bank has also made an effort to reorganise its business to meet customer needs better.

"We will expand our lending operation, particularly in the agricultural and tourism sectors, which are the Cambodian economy's key pillars," says Mr Sophanarith.

"We are also committed to improving our IT infrastructure and new technology-based alternative delivery channels, such as enlarging our ATM coverage and expanding our branch network by at least 10 new offices located in strategic provincial areas."

The bank remains confident that its strength and resilience will continue to provide a steady growth rate, despite the challenging market outlook. It will therefore carry on expanding its IT capability infrastructure and introducing innovative products and services for its customers. As one of Cambodia's leading financial institutions, Canadia Bank plays a vital role in contributing to the country's economic growth and the well-being of its society.

"We have actively participated in a variety of corporate responsibility programmes and community events," says Mr Sophanarith. He adds: "We strive to focus our attention and resources on things that will enhance public confidence in the banking and financial sectors."

Assiongbon Ekue, managing director, Ecobank Cameroun

Assiongbon Ekue, managing director, Ecobank Cameroun

Cameroon

Ecobank Cameroun

Ecobank group continues to impress the judges with its vast network of African banks operating in the most challenging of environments. In 2009, Ecobank Cameroun opened three new branches and grew its assets by 17%.

Faced with pressure on revenues due to market conditions, the bank decided to safeguard returns by driving cost efficiencies. As a result, cost-to-income ratios in 2009 fell to 57% compared with the previous year's 66%, helping to offset revenue pressures.

Ecobank Cameroun also managed to remain in profit and is regarded as a leader among African banks in supplying its customer base with innovative online products designed to attract younger people.

The country's economy is highly reliant on agricultural resources such as cocoa and coffee farming and this in turn has meant that Cameroon's farming community has become a growing force behind banking modernisiation.

To ensure that their products remain attractive in an increasingly competitive market, farmers rely on the bank and its technology. Ecobank Cameroun has closely monitored farmers' needs and adopted measures to cater for this important part of its clientele.

Over the past two years, Ecobank Cameroun's efforts to improve its quality of service have been apparent in its drive to be the most technologically advanced bank in Cameroon, having introduced SMS text and internet banking, more ATMs and e-statement products to its clients.

Ecobank Cameroun remains a safe bet, boasting very good risk management with all key indicators registering significant growth. Its deposits rose by 32% in 2009 and revenues increased by 4%.

Ecobank remains a strong brand across Africa and has proved a determined player in the banking industry.

Monique F Leroux, chief executive, Desjardins

Monique F Leroux, chief executive, Desjardins

Canada

Desjardins

For most financial institutions around the world, last year saw profits reduce. For Canada's largest financial co-operative, Desjardins, 2009 was a turnaround year, which culminated in a pre-tax profit of more than $1.4bn, up from $169m in 2008.

"The top challenge last year was our in-depth management restructuring," says chief executive Monique F Leroux. "Our primary goal was to transform a structure based on legal components and silos towards a more streamlined organisation.

"The process included pooling our core strengths and expertise so that we could better serve the needs of our members, clients and key markets. We've also worked on improving our capital base to support our growth and meet, if not exceed, regulatory requirements."

The bank's Tier 1 capital is $11.69bn and provides the bank with a 15.85% capital requirement ratio. Such strong capital position was achieved through a number of successful issuances on the capital markets: two subordinated debt issuances totalling C$1bn ($982.8m) and a share issue to the Desjardins group's members at a value of C$654m.

Strongly rooted in the community, Desjardins has created a mutual assistance fund to help members going through particularly difficult situations to obtain emergency loans and budget advice. Further, Desjardins serves smaller towns and aboriginal populations and works with them to meet their financing needs.

In Quebec, 34% of the bank's offices are in communities with fewer than 2000 inhabitants. Such activities are not only important for the wider economy but also form an interesting business proposition for Desjardins and widen its client base.

"We will work to maintain our high capital ratios," says Ms Leroux. "We will look for new strategic partnerships and aim to win new client business across Canada."

John D Orr, CEO, First Caribbean International Bank

John D Orr, CEO, First Caribbean International Bank

Cayman Islands

First Caribbean International Bank

Despite the presence of larger banks in the Cayman Islands, First Caribbean International showed higher business progression and profitability ratios than its competitors. It delivered a healthy 24.55% return to shareholders and, while its net profits were not the country's highest in absolute terms, they grew by 12% from the previous year. Cost-to-income ratios were also reduced from the previous year.

Leveraging on the capabilities of its parent company, Canadian Imperial Bank of Commerce, First Caribbean International has introduced a new wealth management product. It also co-branded a high-end Visa credit card with British Airways; launched a bulk payments product to assist corporate clients with their payroll, dividend payments and claim-reimbursement activities; and enhanced its mobile banking capabilities.

Previous technology investments allowed the launch of a new series of deposit products, which respond better to clients' needs, have automated some manual transactions and moved cash flows from the branches to the banks' internet platform. IT investment also provided new sales channels, sending information gathered through online operations to the client's selected branch and allowing the sales force to contact clients within 24 hours of an application form being filed online.

Improvements were also achieved in the time taken to approve loans, which is now two days for consumer loans and between seven and 10 days for retail mortgages.

The bank has also strengthened its efforts to engage with the community by encouraging employees to take part in community projects, such as building dining and recreational areas at a primary school and planting trees in parks.

John D Orr, chief executive officer of First Caribbean International Bank, says: "Enhancing shareholder and client value by providing innovative products and services is our key business priority."

Christian Assossou, managing director, Ecobank Centrafrique

Christian Assossou, managing director, Ecobank Centrafrique

Central African Republic

Ecobank Centrafrique

Despite operating in a country that suffers from political turmoil, coupled with one of the lowest growth rates in Africa, Ecobank Centrafrique continues to surprise market-watchers by reporting profits.

Since it entered the Central African Republic in 2007 through the acquisition of a local bank, Ecobank has continued to develop innovative products designed specifically to cater to the local population's need.

Ecobank Centrafrique grew its Tier 1 capital by 58% from 2008 to 2009 and has opened 11 branches over the past 15 months, including three in remote areas.

The bank continues to strive to improve technology implementation as well as investing in training programmes to increase the efficiency of its workforce.

Although the Central African Republic contains some of the most productive diamond mines in Africa, mismanagement and regional conflicts have reduced the importance of this trade considerably in favour of crop cultivation.

Ecobank Centrafrique has targeted the farming sector and is slowly but surely ensuring that local cotton, coffee and sugar-cane growers gain access to modern banking facilities to aid their businesses in expanding.

On top of its ambitions to be an African bank close to the local population's needs, Ecobank Centrafrique is a profitable business and remains a market leader in assets, deposits and profit.

In an often very difficult environment, it is also said to offer a very good working environment to its workforce.

Chad

Ecobank Chad

Another African country and another Ecobank success story: Ecobank Chad, alongside its namesakes scattered across the continent, continues to deliver customer satisfaction across the banking spectrum.

The Sahelian country might be ranked as one of the poorest in Africa with a gross domestic product per capita of just $1.50, but Ecobank Chad strives to provide the 10-million-strong population with an efficient and modern bank.

The bank grew its Tier 1 capital by 46% between 2008 and 2009 and reported a 28% increase in net profits to $6.92m.

In 2010, Ecobank Chad increased its share capital from $8.62m to $10.62m, with the total dividend distributed to shareholders increasing from $4.2m to $5.3m.

The bank also strengthened its risk management procedures, resulting in a decline in non-performing loans to 3% from 4% the previous year.

In a bid to increase its market share, Ecobank Chad grew its branch network and expanded its customer base by more than 8000 customers between 2008 and 2009. The bank also invested in innovative technologies aimed at improving service delivery.

Finally, as part of its drive to increase its customer base while remaining faithful to its target clients, the bank is looking to launch Islamic financial products to cater to Chad's extensive Muslim population.

Ecobank Chad is the market leader in net profit with 43% of market share and boasts the largest network of banks in the country. In 2009 it also offered the best return on assets in Chad at 3%.

Lionel Olavarria Leyton, chief executive, Bci

Lionel Olavarria Leyton, chief executive, Bci

Chile

Bci

After two very tough years, Chile has much to celebrate. All 33 miners trapped for more than two months in a mine in the north of the country have been rescued, and in September the International Monetary Fund published a broadly positive report on the Chilean economy.

This came in spite of the challenges of a global recession and then, just as the country's economy was recovering, of a devastating earthquake. That disaster killed 500 people and caused about $30bn-worth of damages. Before that, economic growth had contracted by 1.5% of gross domestic product in 2009 and 50,000 jobs had been lost because of the recession.

In such challenging times, Bci still managed to grow its business and closed 2009 in a solid financial position, with a healthy $378m of pre-tax profits. Although not the largest bank in the country, Bci displayed the most dynamic growth, taking into account profits, assets and Tier 1 capital, which grew by 9.53%, 27.7% and 45.14%, respectively.

The bank opened 36 new branches and increased its market share for current accounts, credit cards and savings accounts. "This [growth] was mainly due to our extraordinary innovations throughout the year, which improved our quality of service," says chief executive Lionel Olavarria Leyton.

Among Bci's various initiatives to provide a higher-quality service was the improvement of its offering for the most affluent clients, which now includes a higher level of advice and a broader product portfolio.

The bank has spread technology investment across the organisation, from the improvement of the network that allows access to banking services at retail stores to the development of an advanced accounting record system.

The bank also focused on its small and medium-sized enterprise clients and invested in some local projects involving small businesses, which also helped develop the Chilean economy.

Guo Shuqing, chairman, China Construction Bank

Guo Shuqing, chairman, China Construction Bank

China

China Construction Bank

China Construction Bank (CCB) has led the way in China in deposit, loan and asset growth. The bank recorded a hefty 27.3% rise in assets in 2009, while slashing its non-performing loan ratio from 2.21% to 1.5%.

Net profits were up 15.3% in 2009, exceeding Rmb100bn ($15bn) for the first time. Loan growth for the year, in terms of even and steady credit placement, was comfortably above the industry average. The bank focused on restricting loans to industries with high energy consumption, high pollution levels or overcapacity, and to the property sector. Asset quality was considerably improved, while CCB's net fee and commission income grew by 25% last year. The total number of debit cards issued was 252 million and transactions totalled Rmb790,600bn, representing a year-on-year growth of 77.2%.

CCB's return on average assets and return on equity for 2009 stood at 1.24% and 20.87%, respectively. The final dividend of Rmb0.202 per share was in the top rank of major international commercial banks. CCB can boast the most stable operation of all banks in China. Last year, the bank exercised extreme caution in credit placement. Loan growth for the year was below that of other banks and the level of new loans was the lowest of China's four major commercial banks. CCB's asset quality, on the other hand, took pole position in the Chinese league table.

Guo Shuqing, chairman of CCB, says: "CCB... was also able to keep a clear head in implementing the state's policies on stimulating the economy and upheld steadfastly an operating principle of active prudence.

"CCB will continue to focus on quickening up adjustments in business structure, closely follow the industrialisation and urbanisation processes in China and fully exert its advantages in areas such as infrastructure, residential mortgages and small enterprise. CCB will also drive for innovations in products and services, expand its overseas business and enhance its competitiveness."

Oscar Cabrera Izquierdo, president, BBVA Colombia

Oscar Cabrera Izquierdo, president, BBVA Colombia

Colombia

BBVA Colombia

A country that has been attracting increasing attention from investors and is included in the latest acronym for promising developing markets, CIVETS (along with Indonesia, Vietnam, Egypt, Turkey and South Africa), Colombia is growing its economy and developing a stable financial system, where supervisory and legal frameworks have been improving and the banks are well capitalised.

In the first half of this year, Colombia's gross domestic product (GDP) grew by 4.8% year on year, but it was a very different picture in 2009, with -0.3% GDP growth in the first half of the year, the same as in 2008.

Despite such challenges, BBVA Colombia achieved good profitability in 2009 with a 25% profit on average capital and a 19.63% return on equity. The bank's capital strength also improved and its Tier 1 capital grew by almost 15% on the previous year.

The bank continued to focus on mortgages, taking advantage of government support. In wholesale banking and asset management, it created a single cash management unit, while on the retail side the 'libranzas', where debt is repaid through the payroll of the client's employer, were very successful, this year going from 68% to 91% of all the bank's debt products in terms of usage.

The growth and stability of BBVA Colombia is reflected in its lower cost of funding and the increasing proportion of current and savings accounts against term deposits in its liability composition. BBVA Colombia's issuance of $97m senior notes, which was well received by the market and 2.5 times oversubscribed, helped restructure its liability profile.

The bank's cost-to-income ratio went down to 39.11% in 2009 compared with 40.72% in 2008 and 50.28% in 2007. The figures for the first half of 2010 was 35.7%.

Oscar Cabrera Izquierdo, president of BBVA Colombia, says: "One of the most important challenges during 2009 was to maintain profitability and risk levels in an adverse environment, due to the poor dynamics in the economy."

Fernando Naranjo, chief executive, Banco Nacional de Costa Rica

Fernando Naranjo, chief executive, Banco Nacional de Costa Rica

Costa Rica

Banco Nacional de Costa Rica

Badly affected by the global economic downturn, Costa Rica's exports and its tourism and property sectors suffered throughout the whole of last year. As a consequence, the banking sector was overwhelmed with corporate restructuring requests and additional financing applications.

Banco Nacional de Costa Rica says it is proud to have fulfilled as many requests as possible while still maintaining good levels of profitability and a satisfactory return for its investors. Return on equity was more than 9.5% and its non-performing loans, although up on the previous year, did not exceed 1.82% of the total loan book.

The bank's commitment to smaller businesses was maintained during these troubled times and 30% of its lending activities went to small and medium-sized enterprises. It also created a new microfinance product targeted at businesses run by women, BN Mujer, which has attracted new customers' interest since its inception.

"Whereas overall we had a difficult year supporting our [more troubled] customers, our market share expanded in terms of loan portfolio, total assets, demand deposits and time deposits," says chief executive Fernando Naranjo. "During 2009, Banco Nacional was by far the leader in development banking, devoting a quarter of its loan portfolio to micro, small and medium-sized companies."

As some estimates put Costa Rica's economic growth above 4% in 2010, Banco Nacional is preparing to expand its capacity to serve the rising demand for credit, which has been steadily growing for the past couple of years. New products are in the pipeline, such as public infrastructure financing projects that would then become the basis for securitisation products, to be sold in the local debt market. This promises to be good news for both the bank and the development of Costa Rica's capital markets.

Kevin Murray, chairman, Citibank Côte d'Ivoire

Kevin Murray, chairman, Citibank Côte d'Ivoire

Côte d'Ivoire

Citibank Côte d'Ivoire

Citibank Côte d'Ivoire has continued to provide innovative solutions to clients in the past year and this has been reflected in its figures. Its Tier 1 capital grew by 25.6% from 2008 and net profits rose by 15% to $4.6m.

Citi was mandated sole lead arranger and bookrunner for a CFA Fr76.1bn ($155.2m) financing in favour of telecom company MTN Côte d'Ivoire. This landmark transaction has shown Citi to be the full-service bank necessary to assist Côte d'Ivoire in its efforts to return to normality. Ten years of civil unrest cost the west African country its place as Africa's investor haven, but deals such as the one secured by Citi show that both the country and its banks are back in business.

Citibank Côte d'Ivoire is the only bank in the country providing an integrated electronic banking platform for multi-currency payments and account management. It also remains the nation's bank of choice for multinationals and government agencies.

It is one of the biggest banks in the country in terms of foreign exchange activity and in 2009 processed for its clients the transfer of amounts equivalent to $834m.

Cocoa constitutes the backbone of the Ivorian economy and Citi Côte d'Ivoire finances the country's major producers and exporters operating in this industry.

The bank remains a leader in the country for arranging and distributing major capital market deals and these factors persuaded judges that Citi was Côte d'Ivoire's bank of the year.

Franjo Lukovic, CEO, Zagrebacka Bank

Franjo Lukovic, CEO, Zagrebacka Bank

Croatia

Zagrebacka Bank

As the Croatian economy shrank, loan demand dried up and funding conditions deteriorated in 2009, Zagrebacka Bank managed to cut its operating costs by 7.2% to meet the challenge. The bank also preserved its income-generating capabilities thanks to a diversified client base and investment in expanding its distribution network, even in tough times.

As a result, profits fell only marginally, and far less than those of leading competitors. The bank's owner, UniCredit, demonstrated its commitment to the Croatian market by maintaining the bank's good capitalisation, with Tier 1 capital rising by more than 9% in 2009.

The bank has also installed a customer-relationship management tool that allows staff to view all relevant data about customers and their business relationship with the bank on a single screen, to enable an individual approach to each customer. Meanwhile, internet and mobile banking facilities have been upgraded and redesigned with the goal of increasing customer satisfaction.

Despite adverse circumstances prevailing in the economic environment, increased credit risks and general uncertainty, the bank remained active, increasing its total lending by almost 4% in 2009. This trend intensified in 2010, with a 25% rise in small-business lending during the first half of the year showing the bank's willingness to help drive economic recovery. A full range of energy-efficiency loans, for retail and business customers to buy energy-efficient premises or upgrade existing properties, has no doubt contributed to the increased loan demand.

In keeping with the tough economic climate, the bank actively helped clients to restructure their debt if they were struggling with repayments. The bank also began offering a loan insurance product covering the risk of unemployment and temporary inability to work due to illness.

Cuba

Banco de Inversiones

An historic change is taking place in Cuba. The country this year announced plans to shift its communist, nearly bankrupt economy to a more market-orientated system.

The government has announced new rules and regulations for the private sector, which include four different kinds of taxes, and has listed 178 private jobs that will be permitted. The government now allows Cubans over the age of 17 to start their own business and citizens can apply for licences for more than one business. They will even be allowed to sell their services to the state.

The Cuban Workers' Federation, the official labour union, has announced the shedding of more than half a million state workers, who will be encouraged to find jobs in the private sector.

With a currently almost non-existent private sector, the transition to a more open economy will not be smooth, but it will surely create great opportunities for local banks.

Banco de Inversiones entered 2010 in good shape and ready to take advantage of the country's economic reforms. A corporate bank set up in 1996, it maintained profitability through the financial crisis that even affected this relatively isolated country.

The bank has also steadily lowered its cost-to-income ratio and kept a low non-performing loans ratio. The bank has developed successful solutions to alleviate customers' stress caused by debt repayments and has played a mediating role for clients involved in debt disputes at a time when confidence had been badly damaged by the economic situation.

Financial intermediation and debt restructuring have proved to be successful products, and the bank is proud of being a partner for the international banking community dealing with Cuba.

Thimios Bouloutas, CEO, Marfin Popular Bank

Thimios Bouloutas, CEO, Marfin Popular Bank

Cyprus

Marfin Popular Bank

Marfin Popular Bank, the result of the 2006-07 mergers of Cyprus Popular Bank, Marfin Financial Group and Egnatia Bank, and subsequent expansion in south-eastern Europe, posted a net profit of €173.9m for 2009 and a cost-to-income ratio of 58.1%.

The bank's strategic focus in 2009 was on the loan portfolios and the rationalisation of its subsidiaries, while achieving stronger shareholder value and enhanced profitability. The group's total capital adequacy ratio was 11.5% and its Tier 1 ratio stood at 9.4% at the year's end.

In 2009, the bank invested in technology and launched products to improve customer service. It upgraded its technology infrastructure, implemented the Swift system for payments, enabled automated transfers at lower cost and introduced fraud alerts to customers via SMS text messages. An online trading platform was also launched in Estonia, new ATMs opened in Cyprus to enable cash and cheques to be deposited more easily and quickly, and in Greece, Marfin Egnatia Bank offered a year's access to medical insurance for customers opening new savings accounts.

Thimios Bouloutas, chief executive officer of Marfin Popular Bank, says the group took a defensive stance, centred on capital preservation, liquidity enhancement and cost efficiency. He says: "This strategy proved to be franchise-enhancing, as it enabled our group to provide an uninterrupted flow of credit to its customers during these difficult economic conditions. Maintaining a strong capital base has been key in attracting liquidity, especially during these turbulent times, as well as instrumental in allowing us to extend credit."

For the coming year, Marfin's strategic focus will be on three key areas: strengthening its presence in Cyprus and expanding residential mortgages; optimising its Greek operations through repricing, cost cutting and improved integration; and expanding in emerging markets in Europe.

Gernot Mittendorfer, outgoing CEO, Ceska sporitelna

Gernot Mittendorfer, outgoing CEO, Ceska sporitelna

Czech Republic

Ceska sporitelna

The Czech Republic is one of central Europe's most competitive banking markets, so maintaining a market-leading position in a downturn is a tall order.

Ceska sporitelna has managed this feat with a mix of cutting-edge technology, heavy investment in quality staff and a sustained culture of customer service. Outgoing chief executive officer Gernot Mittendorfer, recently promoted to the management board of the bank's parent, Erste Group, says the challenge is to make sure that Sporitelna's universal bank model works to its advantage.

"The Czech market is becoming more and more competitive every year. New players are coming in, picking the juiciest and most profitable pieces of the business, while we do it all and have a much broader responsibility to our clients. Our goal is to be a real partner for life to our clients - be it in retail or corporate banking," he says.

Excluding one-off profits of Kcs4.3bn ($240m) in 2008 from the sale of its insurance subsidiary, Sporitelna's operating profit grew in 2009 in the face of a 4% gross domestic product contraction, and net profits have held up in 2010, despite rising provisions for non-performing loans (NPLs). Mr Mittendorfer is pleased that "NPLs remained well under control even in the post-crisis environment" and noticeably lower than those of the other leading Czech banks.

The bank established an early-stage loan-recovery call centre to identify clients who are late with repayments for purely administrative rather than financial reasons. It also seized the opportunity created by one competitor exiting the market, smoothly shifting HSBC Premier high-end retail customers across to a newly created Sporitelna Premier service, after the UK bank decided to close its Czech retail banking operations and sell its three Premier branches.

Thierry Taeymans, chairman, Rawbank

Thierry Taeymans, chairman, Rawbank

Democratic Republic of Congo

Rawbank

Riding high on its previous success, Rawbank continues to appeal to The Banker's judges thanks to the work it does in one of the most difficult regions in the world.

This year, Rawbank has continued its network expansion with 19 branches opened across the territory to date.

The bank is a pioneer in electronic payment systems in the Democratic Republic of Congo (DRC) and invests heavily in targeting the unbanked. Rawbank has continued to extend its customer service to all sections of society and has developed products aimed at women, students, entrepreneurs and corporate clients.

It reported net profits of $3.14m in 2009, up 44% from 2008 figures. Thanks to its healthy profits, Rawbank has contributed to job creation within the country, prompting judges to consider it a deserving candidate for this year's award once again.

Rawbank is now the largest bank in copper-rich DRC in terms of its deposit base and balance sheet. It has also attained significant growth in its client base by providing quality service and therefore successfully competing with more established brands in the sector.

Another reason why Rawbank was judged deserving of this award was its record of continuous after-tax profits over the past seven years, despite ongoing political tensions, a global financial crisis and a highly volatile currency situation.

Peter Schütze, country senior executive, Nordea Bank Denmark

Peter Schütze, country senior executive, Nordea Bank Denmark

Denmark

Nordea Bank

Nordea Bank strengthened its capital base in early 2009 and acquired Fionia Bank. This complemented its organic growth strategy and reinforced its market position in the region. The acquisition added 27,000 new 'Gold' customers to Nordea's customer base.

Nordea Bank has focused strongly on customer acquisition and as a result won 50,000 new customer accounts in Denmark in 2009 and added 33,600 more customers in the first half of 2010, excluding those from Fionia Bank. Furthermore, comparing the second quarter of 2010 with the same period in 2009, income from Danish corporate and household customers increased by 6%.

In the second quarter of 2010, Nordea issued €10.5bn of long-term funding, of which €4.6bn of senior notes were issued in the international markets. Two of those notes reopened the senior unsecured markets following weeks of very limited supply in the markets, and the transactions also increased the maturity of Nordea's funding book.

Peter Schütze, country senior executive at Nordea Bank Denmark, says: "Denmark was hit hard by the global financial turmoil, and the crisis has taken its toll on the reputation of the financial services industry. Nordea's strong capital base and access to funding have enabled us to stay close to and support our customers during the crisis. It has required a dedicated team effort as well, but has given us the strength to maintain a prudent approach to growth and new customer acquisition."

During 2010, Nordea welcomed a record number of new Gold and private banking customers in Denmark. Mr Schütze adds that, although Nordea has an organic growth strategy, it does not rule out mergers or acquisitions. He says: "Our growth strategy encompasses nine concrete initiatives, including the next generation of our branch network in the Nordic countries and growth plans in Sweden, Finland and Poland. To deliver strong results, we will keep our focus on customer satisfaction and customer acquisition."

Podila V S Phanindra, CEO, ICB Djibouti

Podila V S Phanindra, CEO, ICB Djibouti

Djibouti

International Commercial Bank Djibouti

The banking sector in Djibouti has seen its most active year to date with the number of banks operating in the country rising from five to 10 in the past 12 months alone.

In this thriving context, International Commercial Bank of Djibouti (ICB) managed to impress this year's judging panel because of its strong performance and innovative ideas.

ICB's chief executive officer, Podila V S Phanindra, speaks of the challenges of increasing income in the absence of substantial investment opportunities, treasury operations or interbank dealings to park excess liquidity.

Mr Phanindra describes an increase in retail business as one of ICB's most spectacular success stories of 2009. "Our small-loans portfolio grew from DFr45m [$250,000] in March 2009 to DFr450m by September 2010. More than 1000 small loans and more than 1000 very small overdrafts were sanctioned, reducing the credit concentration risk," he says.

The bank made a net profit of DFr13.7m in 2009, up 627% on the previous year.

Although the bank operates in a very small market with a population of 800,000, ICB has great ambitions and Mr Phanindra is considering steering the bank into new territory and moving heavily into housing finance for the mid-level and mid-lower-level sectors. "There are plenty of opportunities in the housing finance sector, [which is] safe, secured with assured repayment sources," he says.

"We also plan to move into trade finance as the country has very good potential. Another priority area in which we look forward to expanding is microfinance and we plan to associate with some government agencies involved in this activity as part of financial inclusion initiatives. We plan to increase our loan assets by 50% and gross profit by 37% in 2011," he concludes.

Manuel A Grullón, CEO, Banco Popular

Manuel A Grullón, CEO, Banco Popular

Dominican Republic

Banco Popular Dominicano

The largest bank in the Dominican Republic, Banco Popular Dominicano has not only grown its Tier 1 capital and assets by more than 6% and 4.6%, respectively, but also managed to close 2009 with a healthy profit, only slightly reduced from the previous financial year - a significant achievement given the country's challenging economic situation.

During the first half of last year, commercial activities in the Dominican Republic were significantly affected by negative national and international economic outlooks. Banco Dominicano maintained its strength and achieved a return on equity above 20%, while also lowering its cost-to-income and non-performing loan ratios.

The bank's ability to tap into new business opportunities, especially in treasury services, contributed to these achievements. The bank's net loan portfolio grew by 9.4%, while deposits went up 16.6% on the previous year. Operational costs were cut by 1% and the bank's investment in technology led to the payment card industry granting international certification for its credit card platform.

"The global economic outlook and its impact on the Dominican economy represented one of the main challenges for Banco Popular during 2009," says Manuel A Grullón, the bank's chief executive officer.

Looking ahead, Banco Popular is ready to take advantage of improving economic conditions. It will keep its focus on treasury products and on financing for small and medium-sized enterprises, as well as improving its investment banking and retail products.

Developments in the bank's customer relationship management system will help more targeted sales campaigns, segmentation of client portfolios and sales support activities. Investment in product innovation and client services is in the pipeline, as is an expansion of the product range.

Abelardo Pachano Bertero, executive president, Produbanco

Abelardo Pachano Bertero, executive president, Produbanco

Ecuador

Produbanco

The 2009 fall in international oil prices produced an external shock to the Ecuadorian economy that affected all sectors. Additionally, rigid employment regulations implemented by the new government affected the performance of the labour market, generating tougher business conditions for the private sector.

More specifically to the banking sector, the government created a new tax applicable to cash and investments funds held overseas by Ecuadorian financial institutions as well as an increase in the tax levied on remittances sent overseas, increasing the tax burden. Caps and ceilings on fees and interest rates that banks can charge to its customers also added to the challenges for banking.

In this environment, Produbanco, the leading member of Grupo Financiero Producción and the country's third largest private bank, managed to continue to grow in size and strength, while continuing to control costs. It maintained the risk assessments granted by Pacific Credit Rating (AAA-) and Bank Watch Ratings (AA+), controlled costs and produced the best non-performing loan ratio in Ecuador, at 0.81%.

In addition, the bank's Tier 1 ratio increased to 15.3%, against the 9% required by the Ecuadorian regulations. Although Produbanco's cost-to-income ratio grew to 80%, owing to the suppression of outsourcing by the government's labour regulations, the bank's overall efficiency ratio (operation expenses to total assets) improved to 4.3% during 2009, compared with 4.6% in 2008.

The most notable business win of 2009 was that Produbanco replaced GMAC as the principal financer of General Motors (GM) wholesale credit with its distributors. This has also enabled Produbanco to finance the retail sales by GM distributors to their final customers.

Egypt

National Bank of Egypt

The oldest and largest bank in the country, the state-owned National Bank of Egypt (NBE) has undergone a dramatic restructuring since a new management team took over in April 2008 and transformed both its operations and net profits.

In the year to June 30, 2009, net profits rose by 133.8% to E£900m ($155m) and in the last six months of 2009 profits rose 76% to E£1.01bn, again a dramatic increase well ahead of Egypt's other major banks.

With assets reaching $46.8bn and Tier I capital rising to $1469m in June 2009, NBE is by far the largest bank in Egypt and was the 392nd largest bank in the world in The Banker's latest Top 1000 global ranking.

The transformation of the bank since 2008 has led to considerable sales of investments, a full restoration of the bank's capital and the reversal of the bank's previous loss of market share in deposits and loans. Total capital adequacy was boosted to 12.6% by the end of 2009 and a new product platform aided the very healthy increase in return on average assets, which doubled from 0.19% in June 2007 to 0.37% in June 2009 and to 0.76% in the last six months of 2009. Return on equity similarly doubled from 5.2% in June 2007 to 10.5% in June 2009 and reached 22.1% in December 2009.

NBE's market share through its restructured 249-branch network has been recaptured, reversing an earlier negative trend, and currently the bank is ranked number one in the Egyptian market by many criteria. It has 24% share of total Egyptian bank assets, 27% of customer deposits and 22% of total loans and advances. The bank's progress and improved performance has been reflected in enhanced ratings by the three major rating agencies.

El Salvador

Banco Agrícola

The winner of this category last year, Banco Agrícola has come back with stronger growth figures and better shareholder returns. It has improved its market position in both retail and corporate banking and increased its market share in loans and deposits in strategic segments in a bid to consolidate its leading position in the Salvadorian market.

Throughout the year, Banco Agrícola has increased its efforts to improve its credit risk quality, revising policies and increasing recovery management in all sectors.

Additionally, the bank has increased the level of reserves for its loan portfolio in order to ensure asset quality and better results in the future.

Banco Agrícola has gained the best efficiency ratios in the Salvadorian market. During 2009, it kept its main expenses under control, reallocated resources to initiatives promising better results and improved its distribution-channel strategy to get its cost-to-income ratio down to below 40%.

It has also become the Salvadorian bank with the lowest cost of funds, thanks to its decision to concentrate on deposits and other areas that produce better results, and it has been developing its strategy to enhance customer service.

As part of Grupo Bancolombia, Banco Agrícola began a two-year transformation programme of its business culture in 2008, around the key values of high performance, customer service and teamwork.

Ethiopia

Dashen Bank

Dashen Bank continues to impress the judges with its strong financials and ongoing commitment to modernising the sector.

Beyond the usual financial intermediary activity, Dashen Bank continues to broaden its non-credit-related fee-based income sources and is already reaping the fruits from its investment in modern banking products and multi-channel service-delivery outlets. Dashen has also opened six new branches across the country in a bid to expand its customer outreach while continuing to upgrade the bank's available technology.

The bank has continued investing in different banking products and is at the forefront of the modernisation process of Ethiopia's banking sector.

Its expansion strategy has attracted a considerable number of customers, which in turn reflects the growing confidence the public has in the bank.

In collaboration with Iveri International, Dashen is preparing to introduce mobile banking to the local market with the aim of further increasing its customer base. It has also partnered with Vigo Remittance Corporation to broaden its sources of foreign income and ease money transfer.

All these measures have contributed to improving the bank's results. The bank grew its Tier 1 capital by 21% and increased its net profits by 4.5% to 249.87m birr ($14.9m).

Dashen has maintained its pre-eminence in operational and financial performance and in the application of modern banking technology in the Ethiopian private banking industry.

As a member of Visa International, the bank remains the main provider of modern financial products in the country, leading the judges to consider, for the second consecutive year, Dashen the most apt bank to scoop this year's award.

Reijo Karhinen, executive chairman, OP-Pohjola Group

Reijo Karhinen, executive chairman, OP-Pohjola Group

Finland

OP-Pohjola Group

OP-Pohjola Group continued to seize growth opportunities on the back of its strong financial position and insurance model, and was the only major financial institution in Finland to report earnings growth in 2009.

The group's number of joint banking and non-life insurance customers exceeded 1.1 million in June 2010, an increase of 16% since the beginning of 2009. Tier 1 capital grew by 7% and return on equity by 5.9%.

OP-Pohjola Group succeeded in improving its cost-to-income ratio despite the challenging environment. The group's cost-to-income ratio for banking and investment services, not including insurance operations, stood at 53.1% at the end of 2009.

Reijo Karhinen, executive chairman of the group, says that the financial crisis and the tightening regulatory environment highlighted the value of its large retail deposit base, as the cornerstone of a stable funding structure, despite the pressure the low-interest rate environment put on its retail banking operations. He says: "This year, competition has intensified sharply, for retail deposits in particular, thus adding to the challenge of striking the right balance between profitability and growth aspirations."

OP-Pohjola further strengthened its insurance model with its branch network becoming the prime distribution channel for its retail non-life insurance products, giving the group a broader income base while maintaining tight cost control and a low-risk profile. Costs grew less than 1% in 2009, well below the average for the sector in Finland.

Mr Karhinen says: "We have significant potential to increase further the number of joint banking and insurance customers within our customer base, which is our key strategic ambition. We intend to step up our investments in developing increasingly unified customer solutions across banking and insurance. We are also taking steps to improve our service level and distribution capacity."

Michel Lucas, CEO, Confédération Nationale du Crédit Mutuel

Michel Lucas, CEO, Confédération Nationale du Crédit Mutuel

France

Confédération Nationale du Crédit Mutuel

Crédit Mutuel is a co-operative bank that has remained extremely close to its co-operative values. At present, 70% of the bank's customers are members and the aim is to increase this to 100%.

Chief executive officer Michel Lucas says that although the bank's resilience during the financial turmoil was excellent, the poor image of banking in the wake of the crisis has meant that the co-operative bank has had to explain, on a daily basis, to both its clients and to the public authorities how it operates in order to maintain a high level of trust. "Moreover, we had to defend the co-operative bank model itself at the European level because the authorities are tending to push forward a uniform bank model," he adds.

Despite this, Crédit Mutuel has been able to increase its Tier 1 ratio to 11.8%, which, added to the fact that its rating remained unchanged during the financial turmoil, shows a stable business model that weathered the crisis well.

As well as other acquisitions and strategic partnerships, Crédit Mutuel has concluded two significant deals in the consumer credit business through the acquisitions of Citibank Deutschland, which has given the mutual a second domestic market, and Cofidis, which has strengthened its position both in France and across Europe.

The bank aims to maintain a very high level of proximity with its clients/members and is focused on increasing deposits to improve its deposit/credit ratio and to be able to contribute even more to the financing of activities at a local and regional level.

Mr Lucas adds: "We focus our efforts on retail banking, which has always being our core business and which drives all our major developments both in France and in Europe, whether they are in retail banking, consumer credit or online banking."

Pa Njie, managing director, Trust Bank

Pa Njie, managing director, Trust Bank

Gambia

Trust Bank Gambia

While low switching costs in the Gambian banking sector have seriously tested customer loyalty, Trust Bank has managed to retain its client base in a difficult climate.

In order to improve shareholders' returns, Trust Bank Gambia has embarked on a more effective marketing approach that guarantees competitive interest rates on deposit accounts, competitive charges and effective customer relationship management, ensuring that customers remain with the bank.

Trust Bank suffered a steep drop in return on equity from 37% in 2008 to 23% in 2009 in an industry still affected by narrowing spreads driven by the intensity of competition. However, investment in new software technologies and new facilities offered to customers have ensured that Trust Bank remains the top bank in the country. It reported net profits of 64.95m dalasis ($2.22m) with non-performing loan ratios fluctuating from 18% in 2007 to 15% in 2008 and 16% in 2009.

Trust Bank managing director Pa Njie says the bank plans to maintain momentum in the coming year with a simple formula: create low-cost funds by leveraging on the branch network and sales structure, while improving efficiency through its robust technology platform.

The bank sees great opportunity in the unbanked portion of the Gambian population and has shown innovation in attracting new customers and retaining existing ones. "Trust Bank refuses to be a bank that changes just to keep up with the competition but instead will continue to perceive the needs of its customers in order to drive change ahead of its competitors," says Mr Njie.

These factors were judged to confirm that Trust Bank has 'the team and the spirit' to be the bank of choice in Gambia.

Vakhtang Butskhrikidze, CEO, TBC Bank

Vakhtang Butskhrikidze, CEO, TBC Bank

Georgia

TBC Bank

TBC Bank was the fastest in Georgia to recover from the twin blows of the global financial crisis and Georgia's war with Russia in 2008, recording a small profit of La2.9m ($1.64m) in 2009 after a heavy loss the year before.

The bank's chief executive officer (CEO), Vakhtang Butskhrikidze, says this could only be achieved by an intensive combination of recapitalisation (a 31% increase in Tier 1 capital), repaying and refinancing $250m in maturing bilateral debt, rebuilding a deposit base that had been depressed by the war and aggressively tackling problem loans with the establishment of a nine-man corporate recovery team reporting directly to the bank's deputy CEO.

"Despite the fact that 2009 was a difficult year, bank management concentrated not only on problem resolution but also on development and sophistication, ideally synchronising these two tasks," says Mr Butskhrikidze. In keeping with these twin objectives, the bank did not neglect investment programmes even in tough times. TBC took the lead in installing automated banking terminals that enable not only deposit transactions but also loan repayments and utility bill payments. These already account for 85% of the bank's retail transactions, little more than a year after their introduction.

TBC also became the first bank in Georgia to extend energy-efficiency credits from the corporate to the retail segment. This allows retail customers to pay for items such as double glazing and improved boilers, offering future savings on their energy bills.

"In 2011, the bank's main concentration will be on rebalancing the portfolio towards the retail sector, with a significant focus on affluent and medium-income retail clients. At the same time, the bank will be focused on sustaining a good-quality corporate portfolio," says Mr Butskhrikidze.

Jürgen Fitschen, member of the management board, Deutsche Bank

Jürgen Fitschen, member of the management board, Deutsche Bank

Germany

Deutsche Bank

A high-level realignment of the business model to reduce risk has put Deutsche Bank well on the road to recovery, without the need for government funding during the financial crisis, posting a 2009 net profit of €4.96bn and increasing its Tier 1 capital growth to 11.3%. Return on equity for 2009 was 15.3%, while the cost-to-income ratio was 72%, down from 134.2% in 2008.

Jürgen Fitschen, a member of the management board of Deutsche Bank, says: "We have deleveraged our balance sheet, terminated proprietary trading activities, further improved risk management and increased our core capital. We have decreased risk substantially and have made Deutsche Bank a more stable global bank."

The bank now ranks in the top three in every major banking activity in Germany - bond underwriting, equity underwriting and mergers and acquisitions.

In 2009, Deutsche Bank acquired a major stake in Postbank and launched a comprehensive strategic co-operation effort to exploit cost and revenue synergies. The combination of Postbank's 14 million clients and Deutsche Bank's 15 million creates substantial revenue potential for both partners. This move follows the acquisition of two retail-focused banks: Noris Bank in 2006 and Berliner Bank in 2007. Deutsche Bank also significantly expanded its private wealth management division by acquiring Sal Oppenheim in 2010.

Mr Fitschen adds: "With the planned Postbank takeover, we will significantly strengthen our position in our home market and thus develop our second important earning pillar besides the already-successful investment banking operation."

Deutsche Bank's efficiency drive continues with the launch of a cost-cutting programme this year, while work has also begun on integrating its German global markets and global banking divisions into a single corporate and investment banking business.

Samuel Adjei, managing director, Ecobank Ghana

Samuel Adjei, managing director, Ecobank Ghana

Ghana

Ecobank Ghana

Despite a shrivelling capital market and increased liquidity tensions, Ecobank Ghana was able to successfully raise additional capital. It launched a rights issue in September 2009, which improved its capital adequacy ratio by 12% over the previous year.

The bank also initiated a comprehensive customer-care plan, ensuring that Ecobank Ghana ranked among the highest performers in return on equity in the industry.

It strengthened its e-banking products, increasing customer utilisation of online banking by 1300%. Both retail and corporate clients are now able to perform real-time transactions and facilitate transfers to other banks thanks to the new schemes introduced.

Ecobank Ghana also launched, in partnership with telecoms giant MTN, the country's first mobile phone money service.

As a result, the bank has experienced continuous growth, adding nine new branches to its network in 2009 and boosting its market share by 25%.

Among its achievements, Ecobank Ghana also launched its venture capital operation, Ecobank Venture Capital Financing Company, and began providing financing and advisory services to various start-up companies in the country. Through this latest initiative, the bank managed to reach out to a large portion of the unbanked population, while contributing to the survival and growth of existing small businesses.

The bank has proved its credentials as this year's Bank of the Year for Ghana thanks to its strong financial fundamentals, with a profit growth of 67%, a reduction in non-performing loans from 3.2% to 3% and an improvement in its cost-to-income ratio from 54% to 48%. These results are a testament to the solidity of the bank, which has shown itself to be engaged in an effective growth strategy.

Yannis Costopoulos, executive chairman, Alpha Bank

Yannis Costopoulos, executive chairman, Alpha Bank

Greece

Alpha Bank

No bank in Greece has entirely escaped the pain of the sovereign debt crisis and associated fiscal austerity plan, and the outlook is very uncertain. But this crisis was not of the country's banks' own making and The Banker therefore felt it only fitting to recognise the hard work undertaken by the banks in the most challenging circumstances.

With its conservative strategy, Alpha Bank appears to be best placed to weather the storm. A cost-cutting drive and efforts to improve procurement procedures kept the cost-to-income ratio stable in 2009, and the bank is anticipating a 2% total decline in costs for 2010.

Inevitably, non-performing loans are rising, but at 7.1% in Greece, Alpha Bank's remain lower than many of its peers, and provisioning plus collateral covered 130% of bad loans as at June 2010.

The bank moved fast in 2009, carrying out a €986m rights issue in order to repay the preference shares invested by the Greek government to support the bank at the height of the financial crisis, while also boosting its Tier 1 capital ratio by 200 basis points. Its Bank of International Settlement capital-adequacy ratio, at 13.2%, was the highest among top-tier Greek banks at the end of 2009, and its results in the mid-2010 EU-wide bank stress tests were the best among the country's privately owned banks.

"Through our long-standing balanced approach to managing our business, we maintained a solid balance sheet and low risk profile, preserving our capital and maintaining a comfortable liquidity position. Alpha Bank successfully encountered this complex operating environment while standing firmly by its customers in their efforts to adjust to the deteriorating market conditions," says the bank's executive chairman, Yannis Costopoulos.

Diego Pulido, CEO, Banco Industrial

Diego Pulido, CEO, Banco Industrial

Guatemala

Banco Industrial

Conservative policies have helped Banco Industrial to overcome stressful times during the financial crisis, giving it a structural advantage over international competitors coming to the region and enabling the bank to maintain adequate liquidity and asset quality.

It remains the only bank in Guatemala with international credit ratings from the three major rating agencies and has consolidated its operations in central America, maintaining its regional lead by aligning its structure to focus on strategic goals.

As part of its consolidation in the region's northern triangle (Guatemala, Honduras and El Salvador), the bank was granted authorisation to establish Banco Industrial El Salvador in 2009 and began operating in El Salvador in September 2010 with an initial equity of $20m.

In 2009, Banco Industrial focused on maintaining asset quality. Key risk indicators have been refined and progress has been made in consolidating the bank's presence in the retail business. The bank has reduced its funding costs and counterparty risk by lowering its exposure to international credit lines. A 'flight to quality' by the country's retail and corporate customers has enabled the bank to increase its deposits. Deposits increased 8% to Q36bn ($4.4m) as of June 2010, up from Q33.4bn in June 2009.

Net income has increased by 30% from Q348.3m as of June 2009 to Q448.9m as of June 2010, primarily influenced by cost-reduction policies adopted throughout the bank, which led to a drop in administrative expenses of approximately 13.5%.

Banco Industrial retains its leadership in Guatemala, with market shares of 26.6%, 24.3%, 26.7% and 23.4% in assets, loans, deposits and shareholders' equity, respectively, as of June 30, 2010. It has the country's largest distribution network, with more than 3100 points of service, including branches, mini-branches, kiosks and access to more than 1950 ATMs.

Moustapha Fall, Ecobank Guinea

Moustapha Fall, Ecobank Guinea

Guinea

Ecobank Guinea

Being richly endowed with minerals has not sheltered Guinea from civil unrest and the near collapse of its economy. Against this backdrop of political instability, Ecobank has once again managed to scoop an award for its remarkable work in dangerous and often unstable conditions.

The bank managed to grow its asset base by 41%, leading to an increase in profit of 9% over the previous year. It also grew its Tier 1 capital by 150% and reported net profits of $3.26m.

Despite the challenging market conditions and environment, Ecobank Guinea still managed to strengthen its service delivery, translating into increased deposits to fund asset growth initiatives. Shareholders were also paid a dividend totalling GFr14.5bn ($2m) in 2010.

In 2009, the bank's customer base increased by 33%, bringing the total number of account holders to 67,426.

The Ecobank group has proved instrumental in assisting the Guinean operation to develop its technology platform, enabling the bank to provide its customers with more innovative products and enhanced customer service.

Ecobank Guinea is the fastest-growing bank in the country and continues to expand in uncharted territory to provide the local population with banking facilities and thereby contribute to the economic well-being of Guinean households and businesses alike.

Maria del Rosario Selman-Housein Lopez, president, Banco del País

Maria del Rosario Selman-Housein Lopez, president, Banco del País

Honduras

Banco del País

Despite the difficult international financial environment and a political crisis in Honduras, Banco del País concluded the 2009 financial year with a net profit 7% higher than budgeted for the year, enabling the bank to achieve a return on assets of 30.67%, one of the best figures in Central America.

A fresh investment at the beginning of 2009 enabled the bank to finish its transition to a new technology platform and banking system. This infrastructure enabled many of the bank's electronic services to be updated as well as making new products and services possible.

At the end of 2009, Banco del País registered an increase in gross assets of 4% compared with the previous year. Furthermore, its loan portfolio grew by 6% during the year, with a non-performing loan ratio of 2.03%, showing a healthy portfolio, conservative credit policy and proper monitoring, control and risk-mitigation measures. However, economic conditions and the general deterioration in credit portfolios dictated a prudent increase in reserves for claims and bad debt.

The bank's portfolio of deposits reflected an increase of 2.7% over the previous year. Return on total assets was 2.04% and the capital adequacy level stood at 11.76%, comfortably higher than the 10% required by the national banking regulator in Honduras. Banco del País ended 2009 with a liquidity index of 30.65%.

Banco del País, which plans to expand its branch network to 184 units across 15 of the 18 'departments' or states of Honduras in the year ahead, has obtained ISO international certification for its quality-assurance systems.

Benjamin Hung, CEO, Standard Chartered Hong Kong

Benjamin Hung, CEO, Standard Chartered Hong Kong

Hong Kong

Standard Chartered Hong Kong

Last year was a challenging time for banking in Hong Kong due to the low-interest-rate environment and moderate demand from Organisation for Economic Co-operation and Development countries, which had a negative impact on global trade volumes.

Within these constraints, Standard Chartered turned in an impressive performance, growing its Tier 1 capital by 20% and forcing its non-performing loan ratio down to 0.87%. The bank posted record income for the year, with a 5% increase to HK$2.37bn ($306m). Not only has the bank weathered the financial crisis, but its businesses have been able to broaden their market share in a number of areas such as loans, deposits, mortgage balances and trade income.

Standard Chartered took the lead as one of the first overseas banks to participate in the renminbi cross-border trade settlement pilot scheme and showed leadership in helping Hong Kong to develop as an offshore renminbi centre. While remaining firmly focused on the basics of banking - liquidity, funding profile, capital, risks and costs - Standard Chartered continues to invest in business growth and products. The bank has not slowed its recruitment programme, branding or investment in infrastructure, such as branch and mobile banking channels.

Benjamin Hung, chief executive officer of Standard Chartered Hong Kong, says: "Standard Chartered has delivered seven years of record income and profit and Hong Kong is the core profit contributor to the entire group... We have achieved growth in loans and deposits of 24% and 7%, respectively, in the first half of 2010, which outpaces the market significantly. We are also in a unique position to capture mainland [Chinese] wealth, given Hong Kong's increasing integration with [China]. We will continue to expand our renminbi product offerings and to enhance our product features. We will continue to invest for future growth and see new opportunities emerging in greater China."

Sean Morrissey, CEO, Budapest Bank

Sean Morrissey, CEO, Budapest Bank

Hungary

Budapest Bank

The global financial crisis, a Hungarian government debt crisis and the impact of exchange-rate volatility on foreign currency loans to retail customers (which represent about two-thirds of the total) damaged most of Hungary's banks to varying degrees. GE Money subsidiary Budapest Bank bucked that trend in 2009. Non-performing loans more than doubled to 9.54%, but a 13% cut in the cost-to-income ratio to 46% enabled the bank to grow its profits by a modest 7.5%. Chief executive officer Sean Morrissey says this is the product of a wide-ranging rethink of the way the bank operates.

"We have had to learn how to work

differently. We spent more time supporting customers with financial difficulties, helping them get back on track. We restructured our activities to reduce costs to offset lower growth and higher delinquency. We readdressed how we fund ourselves, given the previously high loan-to-deposit ratio of the Hungarian banking sector. We also focused on communicating the reasons for change to our organisation, given the years of consistent success achieved through growth," says Mr Morrissey.

The bank moved to a purpose-built headquarters in 2010, bringing facilities savings of 20% as a result of lower lease rates and lower operating costs thanks to the building's energy efficiency. And loans continued to grow in target areas despite difficult economic conditions - a co-branded credit card allowing gas bill discounts prompted 17% loan growth in this segment.

"We believe in our current business model, so 2011 will see us focus on the same things - more new products, new partnerships and ever-improving service via our 'no-nonsense' banking approach. We'll remain sympathetic to our customers' financial challenges while continuing to invest in our future by improving our capabilities, sustainability and customer orientation," says Mr Morrissey.

M D Mallya, chairman and managing director, Bank of Baroda

M D Mallya, chairman and managing director, Bank of Baroda

India

Bank of Baroda

Bank of Baroda achieved impressive gains last year. Its net profit ignored the global financial crisis to soar by 37.3%; the same can be said for its return on equity, which rose to 22.19%, with the cost-to-income ratio down to 43.57%.

The bank took customer and technology initiatives to further strengthen its operations and global footprint. The ATM network was expanded to 1315 terminals. Baroda implemented integrated global treasury solutions in its overseas territories and started online institutional trading for its corporate customers. The bank also took key technical initiatives in anti-money laundering, document management systems and payment messaging solutions.

Baroda entered into a tie-up with two asset-management companies to distribute mutual fund products. The bank expanded its customer base to 36 million and increased its branch network to 3100 offices, opening 174 new branches at home and four abroad.

M D Mallya, chairman and managing director at Baroda, says: "The first half of the year was overshadowed by the failure of monsoon rains and a sharp decline in agricultural production, a muted demand for bank credit and negative growth in both exports and imports. While the economy rebounded in the second half, the recovery was accompanied by steadily rising inflation.

"The bank's main successes were its consistently improving performance in all core operating parameters. Its loan and fee income growth were ahead of its peers. Its profits grew healthily on the back of robust top-line growth, prudent management of costs and better operating efficiency. Its spreads improved sequentially quarter on quarter. The bank succeeded in containing impaired assets to the minimum possible level.

"The bank will continue its thrust on stable growth with quality. India's strong growth rebound and demographic advantage offer excellent opportunities for both corporate and retail business in the years to come."

Djohan Emir Setijoso, president director, PT Bank Central Asia

Djohan Emir Setijoso, president director, PT Bank Central Asia

Indonesia

PT Bank Central Asia

PT Bank Central Asia (BCA) successfully navigated its way through last's year financial crisis by pursuing a prudent banking strategy, while continuing its commitment to maintaining ample liquidity, a strong capital base and solid asset quality.

These principles are clearly reflected in the year's results, which show a 15% increase in assets, return on equity up 0.6% to 31.8%, and a 17.8% increase in net profits. The expansion of BCA's funding base in this difficult period is a reflection of customers' trust and confidence in the BCA brand.

BCA continues to undertake service innovations and feature enhancements aimed at improving simplicity, convenience and flexibility for its customers. Enhancements to BCA's internet banking services in 2009 included a broad range of new e-payment capabilities, including automated payment options for mobile phone providers, airlines, travel agents and the retail market.

BCA has played an important role in the development of the Indonesian economy by providing integrated transactional banking and intermediary capabilities. Taking advantage of its strength in transaction banking, BCA is committed to supporting economic growth through prudent lending activities. Loans increased across all sectors at a compound annual rate of 23% over the past five years, with an average non-performing loan ratio of 1%, well below the 5.5% industry average. In 2009, commercial and small to medium-sized enterprise loans contributed 39% to BCA's total loan portfolio, while corporate and consumer loans comprised 38.6% and 22.4%, respectively.

Dr Majid Ghassemi, managing director, Bank Pasargad

Dr Majid Ghassemi, managing director, Bank Pasargad

Iran

Bank Pasargad

Established in 2005 as Iran's fifth private bank, Bank Pasargad is now the nation's fastest-growing privately owned bank and the sixth largest bank in the country in The Banker's latest Top 1000 World Banks listing, with a Tier 1 capital in March 2010 of $1265m.

Among the larger Iranian banks, most of which suffered declines in capital and assets, Pasargad is an exception, showing continued growth in all main indicators. Its results for the 2009-10 financial year showed a 25% rise in Tier 1 capital, following a 43% increase the previous year, outstripping its competitors.

Assets grew by 29% to reach $12.3bn, following a 67% growth the previous year, and net profits rose 44% in 2009-10 to reach $354m, following a similar 44% growth the previous year. This in turn provided a very healthy return on equity of 26.65% in 2009-10, up from 23.15% the previous year, and the bank is ranked as the top Iranian bank in terms of profits on average capital.

The bank has developed new products, such as insurance coverage for its depositors. It has developed its own banking software and increased its market share in deposits, loans and services. The bank has attained a market share of 22.2% among Iranian private banks and has opened 234 branches across the country, with more expected.

Transparency and accuracy of information and data are seen as other advantages in the market and Pasargad is the first Iranian bank to hold a general assembly each year and to publish an audited financial report.

Dr Majid Ghassemi, managing director of Bank Pasargad, says the bank's main successes in 2009 included "ongoing growth in profitability and return on capital, which resulted in our ranking as number one in the Iranian banking industry", moving from 86th to 29th place among the largest Iranian institutions from 2007 to 2009 and "moving from 574th position in 2008 to 435th in 2010 in The Banker's Top 1000 World Banks".

Galia Maor, CEO, Bank Leumi

Galia Maor, CEO, Bank Leumi

Israel

Bank Leumi

Bank Leumi is now Israel's largest bank by assets, one of the best capitalised banks in the country and was by far the most profitable in 2009, when profits surged to NIS2bn ($544m) after a tough 2008. Non-performing loans were also the lowest in the Israeli banking system, at less than 1%.

A clearly enunciated strategy of targeting increased share of wallet in a relatively mature banking market has paid off, generating improved return on equity without taking excessive balance-sheet risks.

"The foundation of our management philosophy is the profound understanding that we have been entrusted with managing other people's money. This translates into a prudent risk culture and a commitment to maintaining and protecting a high-quality balance sheet. In the aftermath of the crisis, we started hearing the 'back-to-basics' mantra in the domestic and global banking sector. We never left the basics," says Leumi's chief executive officer, Galia Maor.

This by no means stops the bank from making significant investment where it sees opportunities consistent with its philosophy. The bank continues to develop its Leumi Digital offering, aiming to stay ahead of the competition in online and mobile banking. E-banking accounts for about 40% of the bank's total transactions and 76% of financial market transactions through Leumi. The bank is also seeking to increase its market share in brokerage, which is not capital-intensive and has traditionally been dominated by small independent securities houses.

"On the capital markets side, we have an opportunity to gain market share in the institutional market. We have leading trading desks both for foreign exchange and rates services and for securities," adds Ms Maor.

Corrado Passera, CEO, Intesa Sanpaolo

Corrado Passera, CEO, Intesa Sanpaolo

Italy

Intesa Sanpaolo

Italy's largest retail bank was a clear winner for The Banker's judges this year with its sound performance throughout a year characterised by global uncertainty, registering just one quarter's loss throughout the crisis.

The group reported a steady increase in profitability, delivering a 9.9% increase in net profits during 2009 to €2.8bn and increasing Tier 1 capital by 11%. Return on equity stood at 5.5%, with a relatively stable cost-to-income ratio of 54%. The bank has reported first-half profits of €1.7bn this year, 6.4% more than in the same period last year.

Corrado Passera, chief executive officer of Intesa Sanpaolo, says the bank's firm focus on the Italian domestic retail market held it in good stead through another challenging year. "Our focus on the real economy has allowed us to address our clients' needs during these difficult times. The low-interest-rate environment, resulting directly from the depressed economic climate, presented a further challenge and is one that I believe we have been successful in adapting to," he says.

He adds that the bank took appropriate actions to ensure stable earning streams through its hedging policy and balanced funding position, which provides Intesa with a higher degree of flexibility relative to other European banks in setting its margins.

The strong performance was reflected in improved shareholder returns, particularly the reinstatement of its dividend payment, with €1bn proposed for the 2009 financial year, representing a 2.7% yield on ordinary shares and a 4.1% yield on savings shares.

Mr Passera says: "Our focus has been on sustainable profitability and liquidity, low leverage and a low risk profile. As a result of this, we were able to resume our dividend payment, we have maintained one of the lowest credit default swap spreads among the largest European banking groups and, unlike many of our peers, we have not sought government assistance or further capital from either sovereign wealth funds or shareholders."

Patrick Hylton, group managing director, National Commercial Bank

Patrick Hylton, group managing director, National Commercial Bank

Jamaica

National Commercial Bank

National Commercial Bank (NCB), the winner of the Jamaica award for the third time, has once again recorded the highest level of growth in the key financial indicators, compared with other banks of similar size in the country.

These achievements are seen as a result of the consistent emphasis placed on being responsive to customers' needs through product innovation and service delivery, developing a more highly skilled workforce, focusing on cost efficiencies and employing prudent risk-management practices.

Tier 1 capital continued to grow in 2009, albeit at a slower rate of 8% than the previous year, and assets also saw an 8% growth, down from 15% in 2008.

NCB continued to innovate during 2009, launching a new tax-free retirement product, and partnering with the Ministry of Agriculture and Fisheries in its drive to encourage the growth of the agricultural sector by developing a financing product called the NCB Farm Loan.

Due to limited external opportunities, NCB focused on internal controls, efficiencies and synergies, such as centralising the key support functions of human resources, marketing and operations. This contributed to the improvement in NCB's cost-to-income ratio to 47.7% and notable growth in its profitability to 18% over the year.

It also continued to focus on improving service delivery, formed a team of internal service representatives from across the enterprise to assist in mobilising various service initiatives and to ensure consistency in how the bank interacts with customers across the network. Internal service-delivery standards were developed for all areas of the bank and its subsidiaries.

The bank also provided practical solutions to help customers manage their debts and structure consistent savings and disciplined budgeting, and continued to work on customer service.

Takashi Tsukamoto, president and CEO, Mizuho Financial Group

Takashi Tsukamoto, president and CEO, Mizuho Financial Group

Japan

Mizuho Financial Group

Mizuho Financial Group (MFG) devoted the past financial year to consolidating its foothold in the domestic market and working on initiatives to manage risk, strengthen its capital base and profitability, while proactively addressing the issues confronting the group and building foundations for future development.

Consolidated credit risk costs decreased by Y317.4bn ($3.86bn) year on year, primarily due to the bank's efforts in credit management. Mizuho has also endeavoured to strengthen the quality and quantity of its capital base. Tier 1 capital increased by 37%, raising the capital adequacy ratio to 9.09%. Consolidated pre-tax profits rose by Y189.6bn to Y1996.6bn.

Last year the bank merged Mizuho Securities, a strong player in the wholesale market, and Shinko Securities, particularly strong in the middle and retail markets, to form a full-service securities company. The bank also introduced a system that allows relationship managers in certain divisions to hold posts concurrently in Mizuho Corporate Bank and Mizuho Securities. For individual customers, the bank reviewed the services offered under the Mizuho Mileage Club programme, and the number of members rose to 7.5 million.

Takashi Tsukamoto, president and chief executive officer of Mizuho Financial Group, says: "In managing risks, we successfully controlled the three key loss-generating factors: credit costs, net losses related to stocks and the impact of the financial market dislocation. We endeavoured to strengthen the quality and quantity of our capital base by issuing common stock. As a result, our capital ratios showed significant improvements. In enhancing profitability, we recorded consolidated net income of Y239.4bn, considerably exceeding our estimate at the beginning of the term.

"In May 2010, we launched the Mizuho Transformation Programme. This identified a series of initiatives for further enhancement of profitability, financial base and front-line business capabilities."

Abdel Karim Kabariti, chairman, Jordan Kuwait Bank

Abdel Karim Kabariti, chairman, Jordan Kuwait Bank

Jordan

Jordan Kuwait Bank

In difficult economic circumstances for Jordan and its major banks, Jordan Kuwait Bank, the country's third largest bank (behind the multinational Arab Bank and the Housing Bank), performed better than its peers.

While pre-tax net profits were down 11.5% to $85.3m in 2009, the decline was significantly less than those of its larger competitors. The bank provided an acceptable return on equity for 2009 of 20.7%, which was down on the 27.3% achieved in 2008 but still well ahead of the other banks.

In the challenging environment, Jordan Kuwait Bank was able to increase its Tier 1 capital by 13.1% to $355.4m as well as providing solid growth in its capital adequacy ratio, which reached 17.76%, compared with 14.99% in 2008. The balance sheet also showed positive expansion, with total assets growing by 3.7% to $3bn. Although Jordan Kuwait's balance sheet is only 6% of the size of Arab Bank's, and all banks suffered from declining credit facilities and increased non-performing loans (NPLs), Jordan Kuwait's NPL ratio of 3% continues to be the lowest in the country's banking sector.

Despite the contraction of credit, the bank's customer deposits grew by 3.8% in 2009 to reach $1.92bn, reflecting positively on the liquidity ratio, which had risen to satisfactory levels. The bank also invested in several new and continuing projects in IT, including a new automated settlement system and a number of service additions to its internet banking system.

The bank has announced improved results for the first three quarters of 2010. Its chairman, Abdel Karim Kabariti, says: "Jordan Kuwait Bank continued its activities of extending facilities to its clients, employing in-depth hands-on analytical assessment of each entity applying for new facilities or the renewal of existing ones, taking into consideration the prevailing state of economic uncertainty."

Vladislav Lee, CEO, Bank CenterCredit

Vladislav Lee, CEO, Bank CenterCredit

Kazakhstan

Bank CenterCredit

With two of Kazakhstan's top-tier banks forced into restructuring, Bank CenterCredit (BCC) seized its chance to cross the threshold from the second tier, becoming the country's third largest bank. While other banks were desperately shrinking their balance sheets, BCC had the liquidity to grow its loan book by 8% in 2009, and had the customer confidence to increase deposits by 21%, leaving room for further expansion as the economy recovers.

BCC's asset quality is also far higher than average for Kazakhstan. While other leading Kazakh banks labour under non-performing loan (NPL) ratios that are well into double digits, BCC had more limited exposure to falling real-estate markets, keeping its NPLs at just 3.5% at the end of 2009.

"Our strong retail and sufficient corporate customer base, nationwide footprint and powerful distribution network, ample market share and having the strongest asset quality among our peers have kept us well-positioned to operate our business properly," says chief executive officer Vladislav Lee.

South Korea's Kookmin Bank has increased its stake in BCC to 40%, and the International Finance Corporation holds a further 10%. This gives the bank a shareholder base that can provide both financial strength and technical expertise.

"At present, we are working on the migration of advanced Kookmin technologies that have been tested and used in international banking to BCC platforms. This will raise the quality and diversity of our services and ensure the introduction of new bank products for our corporate and individual clients," says Mr Lee.

He believes that greater automation of credit-risk evaluation in 2011 should help the bank to continue raising its market share in retail and small-business lending. BCC is also expecting its bank-card business to flourish under the guidance of Harm Yeong Tak, who was previously a general manager in Kookmin's cards division.

Gideon Muriuki, CEO, Co-operative Bank of Kenya

Gideon Muriuki, CEO, Co-operative Bank of Kenya

Kenya

Co-operative Bank of Kenya

Stiff competition and interest-rate volatility have seriously tested Co-operative Bank of Kenya this year. However, thanks to sound management policies and a strengthened commitment to customer satisfaction, Kenya Co-op has scooped the award for 2010.

The bank has grown its customer numbers by a staggering 70% over the past 12 months, bringing the total number to 1.2 million. New products such as mortgage lending and loans targeting the agricultural sector have strengthened the bank.

It opened 27 branches in 2009 and introduced new card payment schemes. On top of this busy schedule, Co-op Kenya acquired brokerage firm Kingdom Securities and plans to venture into the insurance business in the coming months.

It is planning regional expansion thanks to a partnership with Co-operative Sudan as well as other institutions from the wider east African market.

Through its business model, which is unique in the country, Co-op Bank Kenya is able to reach out to more than 7 million members of the co-operative movement, many of whom would not be serviced by traditional banks. The bank therefore strikes a balance between pursuing a profit-generating

business and making an impact on Kenyan society as a whole.

Co-op Kenya operates a foundation that offers four-year secondary education scholarships to more than 1200 students from all over the country. The top students among these are then eligible for sponsorship to go on to university. The foundation is looking to replicate this model throughout the east African markets that it aims to penetrate.

The judging panel welcomed the efforts made by the bank to cater to all segments of the Kenyan population.

Philip Sigwart, CEO, Procredit

Philip Sigwart, CEO, Procredit

Kosovo

Procredit Bank

A strategy of steady expansion continues to serve Procredit Bank well in Kosovo, with profits up 12.3% on a 14% rise in assets in 2009 and non-performing loans still very low at 1.42%. Its ATM network continues to grow, reaching 138 units, and the energy-efficiency loan programme to businesses and households, launched in 2009, has already extended its 1000th loan.

"During the past year, there was a slight increase in non-performing loans in the banking sector in Kosovo and our efforts were mostly focused on maintaining good loan portfolio quality. At the same time, we put a strong emphasis on training our staff and preparing our bank for future challenges," says Procredit chief executive officer Philip Sigwart.

There is every sign that the bank has continued to balance profitability - its return on equity was 37.7% in 2009 - with a development agenda set by Procredit's shareholders. These comprise development banks, socially responsible investment funds and charitable trusts, and the bank has a particular mandate to help raise financial literacy alongside its product offering.

"The returns to our shareholders remained at a high level and we clearly demonstrated that it is possible to have a strong developmental mission while at the same time being commercially very successful," says Mr Sigwart.

He expects growing competition to result in narrowing margins from 2011, and is keeping a close eye on cost control as a result. In the meantime, the bank continues to invest to keep its technology ahead of competitors. SMS text message notifications of account details and the introduction of Visa business cards that allow transactions worldwide are both intended to make the most versatile technology available, even to its core client base of small businesses.

Ibrahim Dabdoub, group chief executive, National Bank of Kuwait

Ibrahim Dabdoub, group chief executive, National Bank of Kuwait

Kuwait

National Bank of Kuwait

The largest bank in Kuwait, with assets of $45bn in December 2009 and a market share above 30% in all business segments, National Bank of Kuwait (NBK) is not only the dominant bank in Kuwait but is also an expanding force in the Middle East.

In 2009, NBK continued its strategy of becoming a leading regional institution and today is present in 10 countries in the Middle East (Kuwait, Egypt, Turkey, Lebanon, Jordan, Bahrain, the United Arab Emirates, Qatar, Saudi Arabia and Iraq) as well as seven other locations covering the world's financial centres. The bank is expected to open in Syria this year and international operations contribute more than 22% to group net profits.

In a difficult environment, in 2009 NBK increased net profits by 3.9% to reach $925m and provide a healthy return on equity of 16.5%. Along with expansion in Egypt, Qatar, Bahrain and Jordan, the bank has continued to strengthen its leading position at home, increasing domestic market share in both the consumer and corporate businesses through its 71 branches, as well as acquiring a 47% stake in the local Boubyan Bank, which offers NBK a foothold in the growing Islamic banking market in Kuwait.

In the region, the bank has added 17 new branches and 15 off-site ATMs and also launched internet banking in Jordan and Qatar. In 2009, risks remained well controlled with capital adequacy at a comfortable 15% and non-performing loans in decline at 1.8%.

In 2010, NBK has maintained strong profit growth and reported net profits of $790m for the first three quarters, putting it well on the way to breaking its target of $1bn in net profits for the year.

Group chief executive Ibrahim Dabdoub says: "In addition to smoothly managing the bank through those [difficult] times, maintaining high profitability indicators and diversifying our income sources, we have managed to make significant strides at the strategic level."

Sevki Sarilar, CEO, Demir Kyrgyz

Sevki Sarilar, CEO, Demir Kyrgyz

Kyrgyzstan

Demir Kyrgyz International Bank

The overthrow of the Kyrgyz government in April 2010 set in motion a train of events that has made the environment very tough for the country's banks, including border closures, capital flight, looting in some areas, government restrictions on some financial transactions and even the nationalisation of the country's largest bank.

Turkish-owned Demir Kyrgyz has not been deterred, seeking to expand its customer base while maintaining an ultra-conservative lending policy appropriate to this highly volatile market.

"We were caught in the situation of decreasing national output, decreased business activity and fluctuating prices for most products, and as a result our customers started facing liquidity problems. This issue was threatening the quality of our loan portfolio. But close co-operation with our customers helped both parties to find mutually beneficial solutions to each individual problem. Thanks to the flexibility of our customers and staff, we have avoided most potential problems," says Demir Kyrgyz' chief executive officer, Sevki Sarilar.

The 2009-vintage loan portfolio has a non-performing loan rate of less than 1%, although the overall rate is inevitably higher, at 8.4%. Mr Sarilar emphasises that the bank is nonetheless ambitious to grow, building on a 56% market share in credit and debit cards and having the country's largest ATM network and transaction volume. In one of the region's most underbanked economies, the opportunity is clear enough.

"We see a great potential in the retail banking services sector, for many people are still not used to or acquainted with banking services. We will continue the sustainable development of the bank and of the country's economy, by providing a tailor-made approach to customers and innovative banking technologies," says Mr Sarilar.

Damian Bell, CEO, ANZ Vientiane Commercial Bank

Damian Bell, CEO, ANZ Vientiane Commercial Bank

Laos

ANZ Vientiane Commercial Bank

Last year marked a period of continued transformation for ANZ Vientiane Commercial Bank. The bank opened a number of new branches to deliver greater levels of service to more customers, and developed new banking products for the Lao market. ANZ also led the market in launching and expanding new ATM services that allow customers and foreign travellers to access their accounts easily and safely.

The bank's working processes were redesigned to make them more customer-friendly and ANZ made a significant investment in staff training on the sales, services, products and new technology sides of the business. It improved its internal capabilities in key areas of risk management, finance, human resources, technology, compliance and operations.

ANZ built operating risk and compliance frameworks that are said to be market leaders in terms of standards and practices. It also provided innovative and competitive financial solutions to some of the largest domestic corporate businesses in Laos to allow them to expand to support further economic growth for the country.

At the same time, ANZ has assisted foreign investors to establish their businesses in Laos through the provision of international-standard banking practices, access to finance and advisory services. The bank has likewise helped successful companies from neighbouring countries to establish operations in Laos.

Samir Hanna, group CEO, Bank Audi

Samir Hanna, group CEO, Bank Audi

Lebanon

Bank Audi

Lebanon's largest bank, Bank Audi recorded a strong performance in 2009 with spectacular growth in customer deposits, a 29.9% growth in assets and improved profitability.

Consolidated net earnings rose to $289m in 2009, 21.4% up on the previous year, the highest growth among domestic peers, and that growth has been exceeded in 2010. The bank's return on average common equity rose to 14.8% in 2009, from 13.3% the previous year, and rose again to 15.3% in the first half of 2010. Deposits grew by 32.6%, or $5.6bn, of which $4.4bn were in Lebanon, making Audi the bank with the highest growth rate and the second largest value increase in customer deposits among leading Arab banks in 2009.

In private banking activities, Bank Audi, which has $7.6bn in assets under management, is expanding in Europe with an agreement to acquire Dresdner Bank Monaco from Commerzbank. It has recently opened a branch in Gibraltar and Bank Audi Saradar France is in the process of opening a new branch in London for private banking. The group hopes to double its private banking franchise in three to five years.

In other areas, Audi is acquiring a majority stake in Arabaya Online, the first online trading platform in Egypt. The bank is finalising the establishment of an insurance company in Algeria and is looking for a link with a large regional distribution outlet in order to offer consumer finance across the Middle East and north Africa region.

The bank, which reported strong consolidated profits of $253.4m for the first nine months of 2010, also has strong capital adequacy, with its Basel II ratio being 11.8% at the end of June 2010.

"This year, the bank faced difficult operating conditions," says Samir Hanna, group chief executive officer. "Within this environment, we had to follow a margin-focused strategy versus a growth-focused strategy last year."

Roger Snelgar, managing director, Standard Lesotho Bank

Roger Snelgar, managing director, Standard Lesotho Bank

Lesotho

Standard Lesotho Bank

Lesotho's economy was badly affected by the global downturn, yet Standard Lesotho Bank was able to leverage its client base by pushing sales of some of its more traditional products, "driving up cross-border sales and consequently generating additional revenue", says managing director Roger Snelgar.

Profitability rose by 12.4% in 2009, year on year, and cost to income was contained at 47.6%. In addition, the bank closely monitored its revenues to avoid leakage and implemented a tight control on costs, enabling it to deliver a successful year despite a difficult environment.

With the government considering major spending on water and electricity infrastructure, more opportunities are arising for the bank. Mr Snelgar is confident that Standard Lesotho will continue to enhance and pursue branch-based activities, with larger opportunities lying in the corporate sector, as mines and factories embark on capital expenditure and the government begins to roll out its infrastructure programmes.

The bank has also undertaken a project to review processes to improve productivity by reducing headcount and cutting costs in the back office.

In terms of return on equity, the recession failed to make much impact on Standard Lesotho's figures, with the bank experiencing a slight rise of 0.2%, from 50.7% in 2008 to 50.9% in 2009. Non-performing loans were reduced to 2.3% in 2009 from 2.5% in the previous year.

All in all, Standard Lesotho has shown consistency of performance and innovation for which it has been widely recognised in the region, making it a deserving candidate for this year's award.

Kola Adeleke, managing director, Ecobank Liberia

Kola Adeleke, managing director, Ecobank Liberia

Liberia

Ecobank Liberia

In 2009, Ecobank Liberia grew its Tier 1 capital by 23% and increased its net profits by 45%, reporting $5.32m for the latter part of the year.

Having strongly marketed itself to international organisations and governments, Ecobank reaped the benefits by attracting greater business and improving its return on equity by 35%.

The bank boasts a well-diversified portfolio while maintaining a lean and prudent capital level to support its business activities.

The bank has continued to capitalise on the stable political situation in Liberia, achieving strong growth in assets over recent months and improving efficiency by reducing its cost-to-income ratio. It is worth mentioning that while Ecobank Liberia's cost-to-income ratio was 54% in 2009, the industry average in post-conflict Liberia was 74.1%.

The bank is expanding its branch network in a bid to increase customer numbers and has already achieved a total of 111,138 customers by June 2010.

Ecobank continues to extend e-banking apace and is now the most visible banking brand in the country, with the largest branch network in Liberia. It has retained its 40% market share and remains the bank of choice for most multinationals doing business in the nation.

Ecobank Liberia is the leading bank in the country by all financial indicators. It has taken bold steps in building capacities and providing strong financial support to local small and medium-sized enterprises and was the first Liberian bank to introduce Visa, ATMs and e-statements to the country.

Said Rashwan, general manager, National Commercial Bank

Said Rashwan, general manager, National Commercial Bank

Libya

National Commercial Bank

The oldest and largest bank in Libya, National Commercial Bank (NCB) reflects the remarkable transition taking place in the Libyan banking sector and is leading the modernisation and the move to a commercially driven, private sector-led focus.

In June 2009, the bank more than tripled its paid-up capital to Ld500m ($385m) and in 2009 net profits rose by 181% to Ld62.5m, more than four times higher than those of 2007. NCB was able to post a satisfactory return on equity of 12%, only slightly down on the 15% of 2008.

The bank's business model has been transformed and total assets in 2009 rose 36% to Ld9.6bn following a 60% increase in 2008. The bank was the first to roll out a new national payment system in April 2009 and, as of September 2010, 22 of its 64 branches are live on the new core banking system, with all branches expected to be live by the middle of 2011. Retail expansion has also been strong; NCB had just six ATMs in 2008 but this increased to 36 in 2009 and another 60 are expected to be added in 2010.

NCB general manager Said Rashwan says: "NCB is building on its strengths, such as the widespread awareness of its brand throughout the country and the high quality of its loans portfolio.

"Because of the launch of new services by the Libyan Central Bank, the substantial growth of the Libyan banking market and unmet market needs such as Islamic banking and asset management, NCB will be able to exploit many opportunities over the next few years to improve the effectiveness of its credit underwriting and to introduce new products customised by client segment and addressing specific needs."

Raimondas Baranauskas, CEO, Bank Snoras

Raimondas Baranauskas, CEO, Bank Snoras

Lithuania

Bank Snoras

While most Baltic banks continued to suffer heavy losses in 2009 amid economic contraction and plunging real-estate markets, a more conservative pre-crisis policy helped Bank Snoras narrowly stay in profit. Credit demand is negligible, but chief executive officer Raimondas Baranauskas says the bank is still working hard to identify promising investment opportunities and carry out rational credit risk assessment even in highly volatile markets.

"Perhaps the essential facts demonstrating that we have made the right decisions during this period of challenges and opportunities are the bank's profitability and the consistently increasing number of customers. The year 2010 is no exception as we are the only bank on the country's financial market that managed to earn a really tangible profit, while during the first three quarters of 2010 alone the bank's customer base has increased by 47,000 to 1.14 million," he says.

The commitment of its shareholders to the Lithuanian market is clear, following a €23.8m capital injection in 2010 that positions the bank well to expand into economic recovery. In 2009, the bank opened six new mini-bank units in Lithuania and purchased the country's only pure-play investment bank, Finasta.

"The next year will be important for seeking to strengthen our position in a fiercely competitive struggle and to make use of new opportunities provided by the business and financial markets as they awake from stagnation in the spheres of credit and providing other relevant and modern services," says Mr Baranauskas.

New savings products launched over the past 18 months to draw in customers during tough times include a gold-linked savings fund and the first tradable certificates of deposit in Lithuania. Bank Snoras' deposit base grew by 26% in 2009, or 3.5 times the market average, providing additional liquidity for growth in 2011.

Jean-Claude Finck, CEO, BCEE

Jean-Claude Finck, CEO, BCEE

Luxembourg

Banque et Caisse d'Epargne de l'Etat

Banque et Caisse d'Epargne de l'Etat (BCEE) is wholly owned by the state of Luxembourg and is the only major financial institution in the country without foreign shareholders. It is also the best-rated commercial bank in Luxembourg - rated AAA by Moody's and AA+ by Standard & Poor's.

Jean-Claude Finck, chief executive officer of BCEE, says the challenges faced by the management board in 2009 were the need for efficient cost management and the development of small and medium-sized enterprise pools in the branch network.

He says: "We consider the fact that we could keep the solvency ratios at very high levels as being one of our main achievements. We continue to be confident in BCEE's ability to develop its activities and to act as a responsible player serving the best interests of its existing and future clients and of the national economy."

At the end of June 2010, the bank's capital adequacy ratio was 20.3 % and its Tier 1 capital ratio was 12.4%, having grown from -8.3% to 11.2% between 2008 and 2009.

The dynamic evolution of BCEE's retail, professional, corporate and public sector businesses, capital markets and investments funds has resulted in a 6.4% growth in banking income.

Mr Finck adds that in the difficult economic context of recent years, BCEE has shown its financial strength and its capacity to assume one of its main missions, which is to support the Luxembourg economy. Growth of loans and advances to the national economy also grew, by 12.2%.

Efficient cost management resulted in a limited increase of administrative expenses and depreciation of tangible and intangible assets. Overall, BCEE saw a growth of net profit by 120.3% in 2009.

Shen Xiaoqi, CEO, ICBC (Macau) Ltd

Shen Xiaoqi, CEO, ICBC (Macau) Ltd

Macau

ICBC (Macau) Ltd

ICBC (Macau) Ltd has proven itself committed to improving shareholder value alongside a dedication to community affairs.

"With the full support of Industrial and Commercial Bank of China [ICBC], its major shareholder, ICBC (Macau) Ltd has striven to accelerate business development, deepen intra-group collaboration and enhance operating performance by leveraging ICBC's advantages in terms of its network, brand, funding and technology," says chief financial officer Chen Xiaoling.

"At the same time, ICBC (Macau) Ltd has implemented a development strategy of being based on Macau, radiating to the mainland, expanding in neighbouring regions and extending to other Portuguese-speaking countries."

ICBC (Macau) Ltd has also continued to expand in e-business and other new service channels and to optimise the portfolio of electronic products, providing customers with low-carbon financial services offering time savings, convenience and efficiency.

To further improve the service offered to holders of ICBC's Peony credit card, ICBC (Macau) Ltd set up a credit-card VIP centre in Macau to provide round-the-clock stop-payment services, cash withdrawals and other emergency assistance services. The bank has also implemented the FOVA IT platform, developed by its parent, ICBC.

These efforts have flowed through to the bottom line. Last year, ICBC (Macau) Ltd registered a 67% increase in net profits, its Tier 1 capital was up 15%, return on equity was up from 10.4% to 14.5% and non-performing loans declined from 0.3% to 0.2%.

ICBC (Macau) Ltd's chief executive officer, Shen Xiaoqi, says: "ICBC Macau will further enhance its market share and influence in the market by actively participating in Macau's infrastructure projects and flourishing tourism facilities, taking advantage of the economic growth in China and seizing the business opportunities derived through the internationalisation of the renminbi."

Hari Kostov, CEO, Komercijalna Banka

Hari Kostov, CEO, Komercijalna Banka

Macedonia, former Yugoslav Republic

Komercijalna Banka

Macedonia's second largest bank took an important step in the past year with the creation of a joint-venture asset manager, co-owned by Slovenian brokerage and fund manager Publikum. This should fill a gap in its product offering and help it catch up with rivals that already have fund management arms in the country. Already, the bank has recorded the largest profit in the Macedonian banking sector in 2009 by a wide margin.

"A variable and uncertain economic environment and deteriorating conditions in the real sector were the greatest challenges for Komercijalna Banka from the aspect of adjusting to the new circumstances and meeting the demands of existing and potential clients. All this had an impact on the operation of the bank and on the realisation of our projected aims, and the greatest successes of Komercijalna Banka were maintaining stable operations and the positive financial result realised for 2009," says the bank's chief executive officer, Hari Kostov.

Komercijalna is pushing hard to build its virtual banking offering, aiming to increase services while reducing infrastructure costs. The Publikum fund offering has immediately been built into the bank's technology platform, with the possibility of investing via SMS text messages. And in recognition of a mobile labour force, the bank began offering a credit card for non-residents in 2009.

"In the forthcoming period, the bank will undertake measures for further improvement and modernisation, introducing new banking products and services, and advancing e-banking technology that will provide long-term sustainability," says Mr Kostov.

The bank is seeking a foreign strategic investor to help it compete in a region where foreign ownership is increasingly prevalent. At present, just under 6% of the bank's stock is owned by the European Bank for Reconstruction and Development, with the rest floated on the Macedonian stock exchange.

Madagascar

Bank of Africa Madagascar

A contraction in economic activity resulting from the impact of the global downturn coupled with a political crisis that rocked the island nation have meant that Bank of Africa Madagascar (BoA Madagascar) deserves an award for holding up in such difficult circumstances.

The political crisis that led to the closure of several industrial and commercial companies, as well as the suspension and cancellation of major investment projects, seriously affected banking activity across the country.

Despite this grim situation, BoA Madagascar still managed to increase its Tier 1 capital by 15.2% in 2009.

It maintained its investment efforts by opening six new branches in 2009 and launching two mobile phone banking products and now operates the biggest banking network in the country.

Bank of Africa has a long-standing tradition of assisting the social development of the communities in which it operates and its Malagasy operation continues to respect this commitment in spite of a very difficult socio-political context. This was one of the factors that impressed the judging panel.

Malawi

Standard Bank Malawi

Standard Bank Malawi succeeded in cost containment and process efficiency in headcount management, operational loss and fraud prevention. All these measures have meant that Standard Malawi retains its crown for the second year running.

Malawi continues to suffer due to its dependency on foreign aid and underskilled rural population, coupled with an AIDS pandemic. Yet in this difficult context, Standard Bank has emerged as a bold financial institution able to tackle the hurdles and offer a superior banking service to its customers.

Judges welcomed the investment banking capabilities established within the corporate and investment banking area to support investment and infrastructure developments in this fast-growing economy.

The bank also introduced a range of new products such as online banking facilities and personalised banking schemes.

Standard Bank has secured a direct corporate access agreement designed to drive growth lending to small and medium-sized enterprises. In total, 16 deals were concluded under this facility in 2009.

It has maintained its upward curve, posting net profits of K2.85m ($18,500) in 2009, up 38% from the previous year, and grew its Tier 1 capital by 49% from the previous year.

Standard is the only bank listed on the local stock exchange and is currently a recommended buy by investment analysts. It is also judged to have very good risk management practices and the greatest potential to structure complex deals.

For Standard's managing director, Charles Mudiwa, the bank is well positioned to take advantage of opportunities in telecoms, agriculture, mining, infrastructure development and energy.

"Through our product offering and customer focus, we are well positioned for another successful year ahead," he says.

Nazir Razak, group chief executive, CIMB

Nazir Razak, group chief executive, CIMB

Malaysia

CIMB

A marked improvement in all measures of financial performance makes CIMB a clear leader in the Malaysian market. Its Tier 1 capital was boosted by 29.2% last year, with a 26.7% gain in net profits, return on equity was up from 12.7% to 13.6% and non-performing loans were reduced from 2.5% to 1.5%.

The gains were underpinned by the bank's conservative approach to capital, as CIMB's higher capital-adequacy ratio leaves it in a position not just to weather the economic downturn but to expand and strengthen its regional reach and operational capabilities. This has made possible a continued investment in infrastructure, talent and product development, all of which have driven market-share gains in consumer and investment banking across the group's principal operating countries in the Association of South-east Asian Nations (ASEAN).

The establishment of a corporate clients' services division means that CIMB is the only financial institution in ASEAN with a single servicing front line able to offer corporate clients complete consumer and investment banking solutions across countries and currencies. This marks a major advantage in enhancing shareholder returns as the bank captures a larger slice of cross-country deals with a wider range of products, offering clients more competitively priced local currency funding.

Nazir Razak, CIMB group chief executive, says: "Our market shares in domestic currency debt and equities have surged outside Malaysia and we won [The Banker's] coveted 'Most Innovative Investment Bank for Asia' award this year. From a consumer banking perspective, we have similarly harmonised our priority banking proposition, CIMB Preferred, across Malaysia, Indonesia, Singapore and Thailand.

"In 2011, we will want to build on our position as the region's leading indigenous investment bank to grow market shares in Indonesia, Singapore and Thailand."

Binta N'Doye Toure, managing director, Ecobank Mali

Binta N'Doye Toure, managing director, Ecobank Mali

Mali

Ecobank Mali

Ecobank Mali's continued upward trend and innovative banking methods impressed The Banker's judges this year.

While net profits remained stagnant, its Tier 1 capital grew by 27% from 2008 figures and the bank consolidated its abilities to restructure its balance sheet to increase revenues and market share.

By introducing Visa and electronic payment terminals across the market, Ecobank managed to increase its fee-based income.

As part of an extensive customer-care service plan, Ecobank Mali increased its ATM network and now organises regular customer forums in which clients are encouraged to meet their local bankers and give them feedback.

In a country where 80% of the population lives in rural areas and another 10% are nomadic, understanding the client is in itself a feat. One of the poorest countries in the world, Mali provides many challenges for banks, but Ecobank Mali continues to cater to the specific needs of its customers, providing them with up-to-date facilities and encouraging them to invest.

Ecobank Mali reduced its non-performing loan ratio from the previous year's 7% to 2% in 2009.

All in all, Ecobank Mali operates a solid banking business in a challenging context.

Tonio Depasquale, CEO, Bank of Valletta Group

Tonio Depasquale, CEO, Bank of Valletta Group

Malta

Bank of Valletta

As the largest bank group in Malta, Bank of Valletta (BOV) was selected by the Committee of European Banking Supervisors to participate in the EU stress tests. The results confirmed that BOV is a well-capitalised bank, by all international standards, with robust capital buffers that rank it among the top European banks in terms of capital ratios.

The bank registered a strong performance in 2009, recording a year-on-year pre-tax profit increase of 101.5%. Liquidity remained strong at 45% and the bank continued to strengthen its capital base with Tier 1 ratio of 11.2% and total capital ratio of 14%. The increase in business, coupled with tight cost containment, led to a significant fall in the bank's cost-to-income ratio from 64% in 2008 to 47.3% during 2009, which impressed The Banker's judges.

Tonio Depasquale, chief executive officer of Bank of Valletta Group, puts the successes of 2009 down to excellent core and domestic operations, on both the retail and corporate sides of the business. He says: "Despite interest rates remaining at a historical low, net interest margin rates for Bank of Valletta have been maintained. Revenue from net commission and trading activities has grown, across cards, investment services and foreign exchange, among others. Operating costs increased only marginally and overall this led the bank to register a 21% increase in year-on-year pre-tax profits [in 2010]."

Mr Depasquale also reports that BOV's performance indicators are also very healthy, with strong liquidity and capital levels that comfortably exceed statutory requirements - exceeding even the more demanding ratios demanded as a result of the new Basel III regulatory requirements.

BOV launched 11 new special deposit products during the year, raising a total of €418m, and further strengthened its capital base by bringing to the market Malta's largest corporate bond issue. The BOV bond was 2.4 times oversubscribed.

Anthony Withers, CEO, the Mauritius Commercial Bank

Anthony Withers, CEO, the Mauritius Commercial Bank

Mauritius

The Mauritius Commercial Bank

The Mauritius Commercial Bank (MCB) scoops this year's award for the best bank in the country thanks to its well-run operations and solid performance in a still uncertain environment.

Subdued domestic economic conditions tested the bank in 2009. However, it still managed to grow its Tier 1 capital by 19.7% and increased net profits by 12.1% to MRs3.25m ($104,000).

It maintained its market diversification impetus domestically and abroad while consolidating its foothold in traditional areas.

The MCB buttressed its prominent market share and financial soundness in 2009, while achieving appreciable profitability levels and sustained balance sheet growth. MCB chief executive officer Anthony Withers says: "The bank succeeded in pursuing ambitious, yet prudent, diversification strategies," while adding that it managed to sustain its momentum in building more capacity, especially with projects geared towards upgrading its physical and technological infrastructure.

Among its achievements, the bank continued to ensure superior levels of customer service. This included expanding card payment methods as well as internet banking kiosks introduced over recent months. All this means the objectives of underpinning an orderly balance sheet and revenue over time provide an ample cushion against potential shocks as well as generating real and sustainable value for shareholders.

As well as tapping into existing opportunities linked to local banking and investor operations in line with the recovery in the global and domestic economies, the MCB "construes regional markets as an increasingly important platform for durably deepening and broadening its growth avenues", says Mr Withers.

Medina Mora, chairman and CEO, Citi Latin America and Mexico

Medina Mora, chairman and CEO, Citi Latin America and Mexico

Mexico

Banamex

By far the most profitable bank in Mexico, Banamex closed a challenging 2009 with a spectacular $1.38bn in net profits, 47.5% up on the previous year. Assets and Tier 1 capital also grew and, at $86bn and $8.2bn, respectively, confirmed the bank's leading position.

Such performance is particularly impressive considering the adversities that Banamex had to face. The country's economic cycle was on a downward trend even before the global financial crisis, with consumption and credit levels slowing months before the collapse of Lehman Brothers. Mexico's dependency on exports to the US and on the manufacturing and automobile sectors aggravated the situation. So did the devastating effects of the H1N1 flu epidemic, which put the country at a standstill for weeks and kept tourists away. With a low tax take limiting any space for countercyclical manoeuvres, the arrival of the global recession hit the country very hard.

Earlier this year, however, Mexico's symbiotic relationship with the US started working in the country's favour again. With the US showing signs of a recovery, there are higher expectations for Mexico's future, despite persisting slow levels of domestic demand.

Banamex has always been prompt to follow credit demand and has consistently focused on increasing credit and deposit volumes, improving asset quality and keeping its costs under control. Such efforts show good results also in non-performing loans (NPLs), whose proportion went down to 2% in 2009 from 2.9% the previous year. This figure keeps on falling and at the end of this year's second quarter, NPLs were 1.7% of the total portfolio. Focus on asset quality continues, therefore, in 2010, as does Banamex's aggressive expansion in lending.

Medina Mora, chairman and chief executive officer of Citi Latin America and Mexico, says: "Banamex managed to be, simultaneously, the most dynamic and strongest bank in the Mexican financial system."

Vladimir Suetnov, chairman of management board, Banca Sociala

Vladimir Suetnov, chairman of management board, Banca Sociala

Moldova

Banca Sociala

Moldova is less integrated into global capital markets than many countries in eastern Europe, but the slowdown in the world economy hurt it all the same - gross domestic product (GDP) contracted by an estimated 6.7% in 2009. In particular, it was not easy for Moldovan banks to renew international credit lines, as a small market with low GDP per capita was not an attractive destination for the scarce resources of Western banks.

Banca Sociala coped relatively well with this situation, repaying all cross-border financing obligations, increasing capital and staying in profit, even while the banking system as a whole registered an aggregate loss of 145m lei ($12m). The chairman of Banca Sociala's management board, Vladimir Suetnov, attributes this success to the attention focused on the bank's technology and the construction of its loan portfolio.

"The efficiency of Banca Sociala's activity was provided by the realisation of anti-crisis measures, as well as by other steps such as the implementation of technologies aimed at meeting customer needs, the improvement of business processes and competitive products, with special attention paid to the diversification of small and medium-sized enterprises [SMEs] and to banking products launched for individuals," he says.

Successful co-operation with the multilateral development banks operating in the region was crucial to maintaining access to international credit. At the same time, while non-performing loans are rising rapidly, they remained at a manageable 5.8% in 2009, whereas many of Banca Sociala's peers are now suffering double-digit bad-loan rates.

Mr Suetnov says the bank intends to increase its capital in the coming year, to consolidate its market position further, especially in the SME segment. He is also aiming to strengthening the bank's position in foreign exchange transactions, including trade finance, remittances and remote banking technology.

Mongolia

Khan Bank

In an extraordinarily difficult year for Mongolia's banks, Khan Bank performed well in 2009 and positioned itself to make a strong entry into 2010.

To strengthen its capital base, the bank added $23m in new capital. This included funds from shareholder equity and Tier 2 subordinated debt. The result was an increase in the bank's capital-adequacy ratio from 12.5% at the end of 2008 to 19.3% a year later. Continued confidence in the bank brought about a 27.6% increase in deposits, while Khan Bank's market share grew from 26.4% to 27.6%. This was accomplished despite a unilateral reduction in interest rates twice during the year.

"The bank has maintained a well-diversified portfolio of commercial and retail loans," says Khan Bank chief executive officer J Peter Morrow.

"Khan Bank took a conservative approach to its loan loss reserves and, as the economy and outlook improve in 2010, loan performance has recovered and those reserves are now being released."

The drop in deposit rates also allowed the bank to reduce loan interest rates. "Through its specialised mining banking department, Khan Bank has positioned itself to support international mining companies," says Mr Morrow. "In 2009, to better support small and medium-sized enterprises [SMEs] and to provide them with services specifically designed for them, the bank established dedicated SME/business loan centres. These initiatives are important components of the mining supply chain."

Mr Morrow says the bank has maintained its leading position through prudent balance sheet management, application of best practices and transparent management.

"These factors brought Khan Bank solidly through the economic downturn," says Mr Morrow. "The bank's solid capital, liquidity, asset quality and branch system now position it unusually well for substantial growth."

Mohamed Elkettani, president, Attijariwafa Bank Morocco

Mohamed Elkettani, president, Attijariwafa Bank Morocco

Morocco

Attijariwafa Bank Morocco

Attijariwafa Bank Morocco continues to impress The Banker's judges thanks to its solid financial performance and sound expansion strategy. A leading banking player in francophone Africa, Atti Bank continues to perform well in even the most difficult markets.

Among its notable achievements in Morocco were increasing its net banking income by 21% to Dh13.3bn ($1.6bn) in 2009, with total assets rising by 12% to Dh290.4bn.

The bank remains a market leader in terms of savings inflows and corporate and investment banking, and has successfully implemented synergies between its business units in order to limit the negative impact of the financial crisis.

In 2009, the bank accelerated its internationalisation process by acquiring Crédit du Congo, l'Union Gabonaise des Banques, La Société Ivoirienne de Banque and le Crédit du Senegal. It opened more branches both domestically and internationally, adding 12 branches in Tunisia, six in Senegal and three in Mali.

The bank launched products aimed at low-income earners such as its Hissab Bikhair scheme, in a bid to attract Morocco's unbanked population.

Morocco's emerging middle class is also catered for with mortgages aimed at first-time buyers and, for the younger investor, Solution Bidaya, which aims to instill banking habits in at an early age.

Attijariwafa is a citizen banking group dedicated to servicing all strands of Moroccan and African societies with ambitions to grow beyond the continent. With that in mind, the judges have awarded Attijariwafa bank of the year based on its solid financials coupled with its socially oriented initiatives.

Anurag Dureha, CEO, ICB Mozambique

Anurag Dureha, CEO, ICB Mozambique

Mozambique

International Commercial Bank Mozambique

In a country with a high proportion of unbanked citizens, International Commercial Bank (ICB) of Mozambique has striven to attract more customers. The bank kept a close watch on its expenses to bring about an improvement in its profitability in 2009. As a result, the cost-to-income ratio improved to 57.06% and profits soared.

ICB posted net profits of 26.45m meticals ($730,000), up 308.10% on 2008. This increase alone was enough to impress the judges. However, the bank continued its aggressive market penetration by opening more branches and providing its customer base with new, up-to-date products.

A large-scale advertising campaign was launched in a bid to increase the bank's visibility in the market, and this bore fruit in a doubling of the customer base and a consequent increase in profits.

Existing non-performing loans (NPLs) were brought under control and the bank focused its efforts on recovery. The NPL ratio was reduced from 7% to less than 1%.

As well as increasing profitability, ICB Mozambique upgraded its core banking solution technology to make it compliant with anti-money laundering regulations.

Over the past year, the bank has expanded its branch and ATM network while continuing to increase its product range and diversifying its revenue streams. Anurag Dureha, chief executive officer of ICB Mozambique, says the country's economy is poised for growth.

"The government of Mozambique is focusing on certain sectors, which will ensure a stronger economy in the long run. The aim is to reduce dependence on foreign support and make the country self-reliant. The country is full of natural resources, which have not been fully tapped into so far. Our bank is aligning its future strategies with the plans and initiatives of the government of Mozambique," he says.

Vekuii Rukoro, CEO, FNB Namibia

Vekuii Rukoro, CEO, FNB Namibia

Namibia

FNB Namibia

Since it gained independence from neighbouring South Africa in 1990, Namibia has enjoyed a long and prosperous period of stability, which has been reflected in its banking sector.

FNB Namibia scoops this year's award for best Namibian bank on the back of robust earnings. The bank's earnings increased by 23% year on year to N$217m ($31m), compared with N$176m in 2008, and net profits rose by 25% to N$232m (N$185m in 2008).

Furthermore, the bank launched a localisation initiative; localisation of core banking systems came as a directive from the Bank of Namibia in August 2008 and the programme was successfully implemented across all of FNB's operations. The systems were previously run from South Africa but the localisation process has meant what is described as an "unmatched customer service" for FNB's clients.

Alongside its customer-service improvement programme, FNB benefited from the positive effects of this year's World Cup held in South Africa. Vekui Rukoro, FNB Namibia's group chief executive officer, attributed "unprecedented customer acquisition and retention and exponential growth in self-service transactions" to the beneficial effects of the sporting event.

The introduction of niche channels to service the country's main sectors, such as agriculture, tourism, the public sector and small and medium-sized enterprises, as well as investment in short-term insurance and life companies, also contributed to the bank's growth and risk diversification.

FNB Namibia also distinguished itself by meeting and exceeding Basel II banking regulation requirements, and it remains well capitalised.

Prithivi B Pande, chairman, Nepal Investment Bank

Prithivi B Pande, chairman, Nepal Investment Bank

Nepal

Nepal Investment Bank

Nepal Investment Bank (NIBL) turned in a record-breaking performance in 2009, with Tier 1 capital up 45.9%, a 29.2% boost in net profits and a reduction in the non-performing-loan ratio from 1.12% to 0.58%. The bank achieved the highest growth of any Nepalese bank in terms of deposits, assets and capital base, and has added nearly 111,000 customers in the past 15 months.

"We have implemented a strategy of increasing our fee-based income," says the bank's chairman, Prithivi B Pande. "We have the largest trade finance operations in Nepal, which last year earned NRs296m [$4.1m] in interest income from trust receipt loans, export credit, inward bills and commission income from trade finance. Our treasury business contributed NRs185m in the same period."

Mr Pande says the bank is focused on growing its card and ATM operations. "We have ventured aggressively into the remittance space with exclusive partnerships with Maybank in Malaysia and Bank Al Bilad in Saudi Arabia," he says.

Mr Pande says the bank is now in a position to grow its assets at a higher rate. "We have no further need to retain shareholder funds to strengthen our capital base, as opposed to our competitors, which will have to retain profits or call in shareholder funds to match our growth levels in the coming years," he says.

NIBL is now the best-capitalised bank in Nepal, with paid-up capital of NRs2.4bn. "We are the undisputed leader in terms of growth rate, profit growth and financial soundness," says Mr Pande. "Over the past eight years we have delivered the most shareholder value. We have now achieved our strategic objective of being the preferred provider of financial services in Nepal."

Piet Moerland, chairman of the executive board, Rabobank

Piet Moerland, chairman of the executive board, Rabobank

Netherlands

Rabobank Group

Despite a challenging year in the Dutch corporate sector, Rabobank Group (AAA rated by Moody's, Standard & Poor's and Dominion Bond Rating Service) delivered a solid performance and managed to maintain a robust capital position, growing Tier 1 capital by 6% and maintaining return on equity at 7.5%.

Members of local banks can buy Rabobank member certificates (€6.3bn worth have been issued), which count as Tier 1 capital and are as close to equity as can be issued by a co-operative bank. In January 2010, Rabobank successfully issued 900 million extra bonds to its members.

Being a market leader in the Dutch market, Rabobank says it did not shy away from its responsibilities and continued to grant loans to the country's small and medium-sized enterprises (SMEs) and agricultural clients through the financial crisis.

Piet Moerland, chairman of the executive board of Rabobank Group, says that Rabobank was able to maintain its positions in the savings and SME markets, and build on its leading position in the Dutch mortgage market.

Furthermore, he adds: "After a challenging 2009, net profit was up again in the first six months of 2010, rising 26% to €1.66bn. The liquidity position remained robust and the capital position continued to improve - the Tier 1 ratio increased by 1.1% to 14.9%.

"To continue to improve our solid financial position, necessary to uphold our client service level, we need to achieve sound margins and continue to focus on controlling costs. Greater use will be made of virtual channels for this purpose, in response to demand from clients. In addition, processes will continue to be streamlined. In doing so, we will continue to put the interests of our clients and members first, without losing sight of the role we play within society as a co-operative bank."

Paul Brock, CEO, Kiwibank

Paul Brock, CEO, Kiwibank

New Zealand

Kiwibank

A 73% rise in net profits with a global financial crisis in full swing is no mean achievement, but Kiwibank achieved just that last year. Kiwibank has in fact demonstrated remarkable growth since its inception.

The bank has embarked on a number of acquisitions and has been a major bond issuer, along with a share offer in Kiwi Capital Securities. Kiwibank has set up new products and services in wealth management, savings, term deposits and funds.

"The main challenges for Kiwibank were a very tough economic market and very strong competition in the domestic retail deposit market," says chief executive officer Paul Brock.

"This not only affected the amount of funds deposited with the bank, but impacted on the margin between borrowing and lending. However, the bank's performance was solid and consistent over the 2009/10 year, and Kiwibank emerged from the world recession in strong shape. We are on track to increase profit over the coming year."

Mr Brock says the bank's main successes were increasing loans and advances by 23% from $8.5bn to $10.4bn and increasing retail deposits by 3% from $6.7bn to $6.9bn.

"This year, our plans include further growth, including launching our own insurance business, developing the profile of our superannuation scheme, increasing the momentum in building our business-banking client base, launching a no-interest micro-lending scheme, as well as our ongoing lobbying for changes in the banking market," he says. "Our recent lobbying has included advocating the portability of bank account numbers, so that when customers switch banks, they can take their account numbers with them."

Nicaragua

Banco de la Produccion

The winner of the Nicaragua country award for the fourth year running, Banco de la Produccion's (Banpro's) main objective in 2009 was to remain liquid, given the volatile international environment and a domestic recession.

Nicaragua's recession had a negative effect on Banpro's retail business, especially on its credit-card operation, for which the bank had to increase its spending on loan-loss reserves.

Added to this, a new banking regulation regarding loan-loss reserves was approved and it demanded higher reserve percentages for certain credit risk categories.

These effects were partially mitigated by a further reduction in Banpro's operating expenses, such as credit-card processing expenses and publicity.

Also, given high liquidity levels, the bank decided to reduce costly deposits, especially those related to institutional investors, who commonly prefer term deposits.

The bank was able to grow deposits, but with cheaper products such as savings and current accounts.

The most significant business opportunity for the bank in 2009 was the purchase of the loan portfolio of an international bank that was closing down its operations in the country. This international bank had a high-quality loan portfolio and the transaction produced a positive effect on the bank's balance sheet as Banpro was able to reduce excess liquidity and in turn increase productive assets.

Banpro also strengthened its remittance business in 2009. Overall remittances in Nicaragua fell by 6%, but Banpro's share in this market increased to 17%, from 14% the previous year.

During the past four years, Banpro has earned and maintained investment-grade ratings, grown 80% in terms of assets, increased its market share by more than 4% and consolidated its position as the biggest bank in Nicaragua.

Niger

Ecobank Niger

With only uranium to sustain the country's economy and a highly volatile political situation, Ecobank Niger has managed to impress The Banker's judges again by providing excellent banking services in one of the most difficult environments imaginable.

Ecobank Niger grew its Tier 1 capital by 123% between 2008 and 2009 and increased its net profits by 33% to CFA Fr1.72m ($3500). Its cost-to-income ratio dropped to 55%, compared with the previous year's 61%.

The bank recorded strong growth in assets, reflecting its profitability. This was achieved through domestic expansion, with the opening of six more branches. The bank also launched innovative products such as SMS text message banking and rapid transfer methods.

Mortgages were made available to a larger proportion of customers, benefiting from a building boom that is taking place in the country. As more individual investors look to borrow money, this will stimulate the banking sector as a whole.

Ecobank Niger has done well to introduce new products and attract more investors in a country with a high proportion of unbanked residents.

It continues to post healthy figures and, in spite of a difficult operating environment, continues to focus on retail banking, where more potential customers can be attracted to ensure that the bank's organic growth is sustained.

Tayo Aderinokun, CEO, Guaranty Trust Bank

Tayo Aderinokun, CEO, Guaranty Trust Bank

Nigeria

Guaranty Trust Bank

Nigeria's banking sector is making a steady and healthy recovery thanks to sound regulation initiated by the government over the past two years.

Judges ruled that this year's winner of the bank of the year award should be Guaranty Trust Bank. Despite reporting disappointing profits for 2009, the bank managed to grow its Tier 1 capital by 4.97% in a difficult market.

Given the new regulations imposed by Nigeria's financial authority, Guaranty embarked on an aggressive loan-recovery exercise designed to recoup some of the bank's provisional assets.

As a result, the bank adopted a measured approach towards risk-asset growth and has been able to maintain a decent net interest margin by adequately pricing its risk assets and tenured deposits.

Moreover, the bank continues to attract, recruit and train high-performing staff that add measurable value to its core business.

The bank has also introduced new online products over the past 12 months as well as ATMs to attract new customers. Consequently, it has managed to decongest its banking halls, allowing frontline staff to concentrate on more complex activities and offer a better all-round service.

Guaranty has also launched packages aimed at the country's students, which constitute a large proportion of the population.

The bank prides itself on being the most innovative of Nigerian banks and, despite the reforms and turbulence that have affected the country's financial sector, Guaranty has remained the most profitable bank in Nigeria.

Gunn Wærsted, country senior executive, Nordea Bank Norway

Gunn Wærsted, country senior executive, Nordea Bank Norway

Norway

Nordea Bank

While not immune from the forces of the global economic slowdown, Norway's financial sector survived the credit crunch better than many. Of all Norway's banks, Nordea - winning three awards this year and last - benefited the most from this relative resilience.

Gunn Wærsted, country senior executive of Nordea Bank Norway, says that while this meant that Nordea was able to deliver strong and stable results, the bank was still part of an industry that needed to restore its reputation as a whole.

"Our core value of creating great customer experiences became even more important for us in the prevailing situation. The aim and ability to stay close to customers is a prerequisite to deliver on our growth plans for the Norwegian market," she says.

As a result, Nordea Bank increased its market share in mortgages and investment funds and strengthened its position in corporate finance and equity.

The first initial public offering introduced post-financial crisis by Nordea won a number of important mandates and clearly underlined the high ambition level within this sector. But for Ms Gunn, Nordea's biggest achievement in 2009 was the constant inflow of new 'Gold' and private-banking customers - "a proof point of the enthusiasm and hard work by all of our dedicated staff," she says.

"We have an ambition to grow our market shares in Norway and not least to further increase the share of wallet with our customers. To stay a world-leading bank in the field of shipping and oil services and continue to be a preferred partner for these customers will also be important."

Oman

Bank Muscat

The largest bank in Oman by a long margin, with a 42% market share of assets, BankMuscat had a challenging year in 2009 but nevertheless succeeded in delivering a resilient performance.

Pre-tax net profits were down 19% but still managed to reach $229m, providing an acceptable 10.7% return on equity. Provisions for credit losses had risen to $251.3m in 2009 compared to $62.9m in 2008 as a result of taking full provisions for certain large exposures in its overseas branches.

While Tier 1 capital rose 9.6% to $1.62bn, total assets slipped by 4.1% to $15bn, although the bank's loans portfolio grew by 5.2% to $10.4bn. The bank's capital adequacy ratio stood at 15.2% at the end of 2009, well above the minimum requirement of 10%.

Due to cost-containment measures, the bank shaved 2.5% off its operating expenses to $210.1m and also put in place robust policies and procedures on cross-border country/bank exposures to mitigate future challenges and follow global best practice in risk management.

Consolidating its dominant position in launching innovative technology products, BankMuscat launched e-Purse, marking the first step towards a cashless society in Oman.

The bank also strengthened its presence throughout the country with the sector's widest network of 126 branches, ATMs and point-of-sale terminals. Reflecting this wide network, the bank, over the 12 months from July 2009 to June 2010, managed to attract a 53% share of the new deposits gained by the banking industry in Oman.

In the first nine months of 2010, BankMuscat achieved a net profit of OR72.2m ($186.6m), a 10% decline on the previous year. Management, however, believes this was due to exceptional circumstances and the real comparison showed a 10% increase, reflecting a healthy performance as well as economic recovery.

Syed Ali Raza, president and chairman, National Bank of Pakistan

Syed Ali Raza, president and chairman, National Bank of Pakistan

Pakistan

National Bank of Pakistan

National Bank of Pakistan (NBP) has strengthened its customer retention, penetration and profitability. The bank has continued to diversify its revenue base by creating additional specialised business groups to focus on the recovery of non-performing loans, increase the volume of domestic remittances and enhance revenue streams through equity portfolio investments.

NBP has positioned itself for further growth by building capacity in human resources and IT, as well as upgrading its infrastructure to ensure operational efficiency and better customer service.

The bank has strengthened its international franchise in central and south Asia and in the Middle East - emerging markets that are already providing good returns and will, it believes, become a significant source of future income. NBP has opened 19 new domestic branches, including five Islamic banking branches. This year it opened a branch in Saudi Arabia. It also created seven more 'customer facilitation' centres which cater for pensioners, the payment of utility bills and tax collection. In order to improve efficiency and automation, NBP has implemented its Core Banking Application, with the first branch expected to come on the IT platform by the end of 2010.

Syed Ali Raza, president and chairman of NBP, says: "[Last year] was a very challenging year. The economy remained under pressure because of energy and power constraints, the law-and-order situation, high interest rates and inflation." He says the bank's main achievements in 2009 were the 16% and 15% growth in deposits and advances, respectively, the creation of new business groups within the bank to widen the product offering, the new IT platform and investment in staff training and development.

On the future, Mr Raza says: "The management of the bank has given a new vision in which the bank intends to double its size and profitability in the next five to six years."

Jaime Rivera, CEO, Bladex

Jaime Rivera, CEO, Bladex

Panama

Banco Latinoamericano de Comercio Exterior

The impact of the financial crisis on trade flows hurt Latin America badly and business trade diminished by 24% - a drop not seen in 80 years. This badly affected Panama's banking sector, and Banco Latinoamericano de Comercio Exterior (Bladex - previously known as Banco Latinoamericano de Exportacioes) was no exception.

The bank, however, maintained a presence in all markets within the Central American region, supporting its clients and their businesses. Bladex managed to grow its commercial loan portfolio by 17% from May 2009 to the end of the year. The bank has also started looking to offer a wider range of products to respond to clients' needs, such as leasing and factoring. Prudent management and a good knowledge of clients, business sectors and markets allowed Bladex to keep non-performing loans at bay, with a figure close to zero.

After a gloomy 2009, Latin America now enjoys good economic prospects, although perhaps the economic recovery has not been as speedy as was hoped.

The country's gross domestic product is expected to grow by 3% in 2010, which will benefit the financial sector. Bladex has already seen the first signs of recovery and in the first three quarters of 2010 accelerated its growth and expanded its commercial loan portfolio by 44% on the same period last year.

"Bladex managed such achievements by leveraging on its traditional strengths: focusing on a region and business that it knows well, excellent risk management and united, able staff," says Bladex chief executive Jaime Rivera. "Looking at 2011, we're planning to open a new representative office in Peru and we're interested in opening another in Colombia. This is in line with our wider focus on medium-sized enterprises, which are playing a growing role in the internationalisation of their markets."

Conor McEnroy, chairman, Sudameris Bank

Conor McEnroy, chairman, Sudameris Bank

Paraguay

Sudameris Bank

Acquired by the Irish investment company Abbeyfield Group in 2004, Sudameris Bank is a turnaround story. Since the acquisition, the bank has steadily grown and has ambitious plans for its future expansion and profitability, aimed at improving shareholders' return from 11.3% in 2009 to 30% by the end of 2012. Looking at last year's performance, such plans are more than plausible.

Despite its still limited share of the country's loan market, Sudameris grew its loan portfolio by 85% between December 2008 and April 2010, second only to the much larger Banco Continental. Sudameris also expanded its deposits by 80%. By August 2010, Sudameris had the fastest-growing loan portfolio in Paraguay, with an 89% year-on-year expansion, and was third in terms of deposits, with a 50% growth.

Paraguay's banking sector is developing at an encouraging rate and recent initiatives have helped, such as the creation five years ago of an agency to provide long-term financing to banks as a counterpart to their long-term lending to individuals and businesses. Sudameris was quick to recognise the potential of this and was the first Paraguayan bank to issue long-term loans. Despite its fast loan expansion, the bank kept non-performing loans to an exceptionally low 0.6%.

Sudameris' restructuring is still in progress. Corporate banking units have been reorganised; more focus has been put on services for the growing cattle sector; the number of branches has doubled since the start of 2009, with an ATM network now three times larger; and new products have been launched for the retail and small-business markets.

Conor McEnroy, chairman of Sudameris, says: "Sudameris moved into fifth place as clients started to see it as a viable, preferable alternative. The other main challenge was to say no to large volumes of attractively priced wholesale deposits. If there is one lesson to be learnt from the banking crisis, it is: Stay away from large, short-term wholesale deposits, no matter how attractive the pricing!"

Walter Bayly, CEO, Banco de Credito del Peru

Walter Bayly, CEO, Banco de Credito del Peru

Peru

Banco de Credito del Peru

In 2009, Banco de Credito del Peru (BCP) acquired Financiera Edyficar, which gave the bank not only a micro-credit loan portfolio but also a successful business model that it intends to preserve.

Through this acquisition, BCP consolidated its commitment to opening access for the unbanked population and to the development of financial products and services for low-income customers. The acquisition also gave the bank more than 220,000 new clients from the small and medium-sized enterprise (SME) sector, putting it in the lead in the market, with a 20.1% share in Peruvian SME loans.

Walter Bayly, BCP's chief executive officer, says the greatest achievement of the year has been weathering the financial crisis without any impact on the bank's strength and ability to grow.

He says: "Our organisation has continued expanding its business, adapting its strategies and policies to a changing environment, becoming more professional every day and learning from what we are seeing in other markets. In fact, we are proud of having been able to learn the ropes of consumer lending in a short period, being especially successful in our efforts of becoming more accessible with a wide and cost-efficient network.

"This, together with our enhanced strategy to capture growth potential in less penetrated segments (such as micro-lending and SMEs), has given us the leadership even in some consumer products, despite our short learning curve."

BCP, Peru's largest bank and the leading supplier of integrated financial services, with more than $19bn in total assets and a market share of 33.4% in loans and 34.7% in deposits, launched two very successful issues in 2009. Furthermore, it has successfully defended its market position despite a strong international presence from larger financial institutions and domestic competition.

Arthur Ty, president, Metrobank

Arthur Ty, president, Metrobank

Philippines

Metrobank

Metrobank has remained firmly on course to achieve its objectives of growing core earnings while pursuing a philosophy of balanced risk-reward lending and investing.

The bank achieved these targets by offering customer-centred products and services, while harnessing strong partnerships with existing and new clients. In tandem with its initiative to transform branches into marketing and distribution channels, Metrobank has also aggressively reduced its non-performing assets to 3.6%, from 4.4% in the previous year. In addition, improvements carried out in credit and risk management have resulted in better-quality accounts and less need for provisioning.

These actions have helped to deliver sustainable revenue and net income growth, despite the challenging period of 2008-09. Last year the bank showed good growth in revenue and profits, coupled with continued success in the proactive clean-up of non-performing assets. Operating income grew positively thanks to an improvement in the deposit mix and healthy loan business in better-yielding segments.

Metrobank's treasury group last year successfully started dealing in non-delivery forwards, giving it access to offshore US dollar and Philippine peso flows, as well as the ability to hedge and take positions in third currencies. Metrobank also launched interest-rate swaps and began trading as a market-maker. Recognising the increasing importance of trade with China, the bank started offering renminbi products.

Metrobank president Arthur Ty says: "We ended the year with consolidated net income of 6bn pesos [$137m], 37% higher year on year. Consolidated assets grew 12% to 854bn pesos and maintained our position as the highest-capitalised bank in the country... We see opportunities in infrastructure, power and utilities. This is supported by sustained growth in remittances and personal consumption."

Mateusz Morawiecki, CEO, Bank Zachodni WBK

Mateusz Morawiecki, CEO, Bank Zachodni WBK

Poland

Bank Zachodni WBK

The knowledge that Bank Zachodni's foreign owner had been nationalised by its home government and was required to sell its Polish subsidiary would be enough to distract most staff, but apparently it did not deflect the performance of Bank Zachodni.

The sale of distressed Allied Irish Banks' 70% stake in Zachodni to the much stronger Santander for €3.1bn in September 2010 capped a highly successful year for Poland's fourth largest bank by capital, despite the troubles at its former parent.

"One of our key business objectives was to rebalance credit exposure and we successfully shifted from commercial property towards consumer banking and small and medium-sized enterprises [SMEs]. We maintained high staff morale and exhibited robust long-term performance and sustainable growth dynamics," says Zachodni's chief executive officer, Mateusz Morawiecki.

Despite a strong 12.3% capital-adequacy ratio, the bank's return on equity in 2009 was 17.5%, the highest among the top-tier Polish banks. The bank's switch to a retail-led strategy was accompanied by branch expansion and aggressive client acquisition.

"In 2010, we launched our most successful marketing campaign, thanks to which every second personal account opened in Poland has been with Bank Zachodni. It is our ambition to boost sales and cross-sell in the personal and SME segments, further optimise our business models, increase sales power and be the service-quality leader in the Polish banking industry," says Mr Morawiecki.

The acquisition by Santander will give Zachodni a well-funded parent with an established strategy for integrating acquisitions; the Spanish bank will inherit an excellent base on which to build in the Polish market.

"Within that dynamic group, we will have room to further improve business performance, grow our market share and increase operational efficiency, based on Santander's best practices," says Mr Morawiecki.

Nuno Amado, CEO, Santander Portugal

Nuno Amado, CEO, Santander Portugal

Portugal

Banco Santander Totta

By steadily building its client base and managing costs and risks, Banco Santander Totta has produced sustained growth in income and maintained solid, profitable performance levels. It closed the 2009 financial year with a net profit of €523.3m, representing a 1.1% increase on 2008, with Tier 1 and core capital standing at 11% and 9.2%, respectively, and return on equity reaching 20.8%. Net income rose to €800.4m, an increase of 5.9% over 2008.

Santander Totta has also kept the highest credit rating of any Portuguese bank (AA, A1 and A for long-term debt set by Fitch, Moody's and Standard & Poor's, respectively). This performance has been achieved without the help of public funds.

Nuno Amado, chief executive of Santander Portugal, says: "Major restrictions on liquidity and funding and a complex macroeconomic environment led us to be particularly cautious in risk assessment and non-performing loan recovery, as well as in cost management. We feel particularly satisfied with what we've achieved: in a major economic slowdown environment and particularly severe funding conditions for Portuguese banks, we've proved that our model, based on a very efficient management of costs and credit risks, and product innovation, was the best."

Banco Santander Totta achieved a return on equity of 18% in 2010 while supporting the economy through the growth of 5.6% in lending to small and medium-sized enterprises (SMEs), also achieving 4% growth in customers and keeping costs flat. Customer deposits also grew, by 14%.

Mr Amado adds: "Our base-case business strategy is focused on the affluent retail segments, continuing support to SMEs, select management of spreads and cost control. Opportunities will come, deriving from the fact that we have the best ratings, solvency ratios and cost-to-income and stress-test results of the Portuguese banking sector."

Javier Hidalgo, country head, Santander BanCorp

Javier Hidalgo, country head, Santander BanCorp

Puerto Rico

Santander Bancorp

The past year posed significant challenges for Santander BanCorp. The economic recession and the adverse credit cycle pressured margins and profitability, but the bank was able to return profits despite mounting competition. Santander Bancorp's net income increased from $10.5m in 2008 to $41.3m in 2009.

Javier Hidalgo, country head of Santander BanCorp, says it has been able to strengthen its business foundations and reposition itself as a leading financial institution in Puerto Rico despite a complicated economic environment with a prolonged recession.

He says: "Santander BanCorp continued to effectively preserve asset quality with its strong risk management framework and to maintain operational efficiency by consistently managing and containing operating expenses. Additionally, we diversified revenues and increased recurrent sources of revenue through all our affiliates: bank, insurance, consumer finance and broker-dealer."

The business model implemented by the bank in 2009 led to improvements in cross-selling and yielded positive results in client activity and loyalty and revenue diversification. The emphasis on controlling costs helped to cut operating expenses from $69.4m in the first quarter of 2009 to $62.8m in the first quarter of 2010 and to improve the efficiency ratio, on a tax-equivalent basis, from 62.38% to 52.37% in the same period.

With net income improving from a net loss of $31,000 in March 2009 to a net gain of $21.4m as of March 2010, Santander BanCorp is one of very few financial institutions in Puerto Rico reporting profits, and is the leading institution according to the industry's quarterly performance ratios.

Mr Hidalgo adds: "Santander will continue to preserve asset quality and keep its ongoing strict control of operating expenses. We will remain focused on promoting organic growth by maximising cross-sell business opportunities and improve commercial activity by optimising the deposit franchise."

Qatar

Qatar National Bank

More than three times the size of its nearest domestic rival in asset terms, Qatar National Bank (QNB) was able to deliver outstanding results in 2009 despite the difficult economic conditions around the world.

The bank, which has an expanding international presence that covers 24 countries, earned pre-tax net profits of $1.15bn, up 15% on the previous year. This produced a return on average equity of 22.9%, making it one of the most profitable banks in the Middle East.

Meanwhile, QNB's total assets grew by 18% in 2009 to reach $49.3bn and its Tier 1 capital expanded by 5.2% to $3.8bn. While loans grew by 8.7% to $29.9bn, QNB was able to maintain its non-performing loan ratio at a very low 0.7%, reflecting its high-quality portfolio.

QNB has expanded its stake in Jordan's Housing Bank to 34.3%, opened its first branch in Mauritania, the fifth country in Africa in which the bank operates, and obtained regulatory approval to operate in Lebanon. QNB also entered Syria with the opening of QNB Syria in November 2009; and hopes to increase its stake in QNB Syria from 49% to 55%, to increase its investment from $100m to $300m and increase the branch network in Syria to 15 by early 2011. The bank has also opened a wholly owned subsidiary in Geneva, QNB Switzerland, dedicated to private banking. In addition, the bank is expanding the branch network of QNB Al Islami in Qatar and expanding its presence in Sudan.

The strong performance has continued into 2010 with QNB's net profits for the first nine months of 2010 up 32.8% to $1.15bn. Total assets were also up 27.1% year on year to $53.5bn, reflecting yet another year of strong growth.

Lazare Noulekou, managing director, Ecobank Congo Brazzaville

Lazare Noulekou, managing director, Ecobank Congo Brazzaville

Republic of Congo

Ecobank Congo Brazzaville

Despite belonging to the unfortunate club of 'heavily indebted poor countries', the Republic of Congo has been resourceful in improving its economic outlook. This has been mirrored by Ecobank Congo Brazzaville, which has remained at the forefront of innovation and productivity.

The country's current administration presides over an uneasy internal peace and continues to face difficult economic problems as it struggles to stimulate recovery and reduce poverty. In this context, success stories such as those of Ecobank Brazza are commendable.

Ecobank Brazza is back in profit, reporting a 138% increase in 2009 from 2008's figures. The bank managed this impressive leap by focusing on non-interest-bearing (NIB) deposit mobilisation, which resulted in an NIB ratio of 89%.

The bank also placed stronger emphasis on revenue-generation in line with its budget targets and improved efficiency levels, helping to improve its cost-to-income ratio to 84% from 303% the previous year.

Throughout the past 15 months, the management of Ecobank Brazza has successfully implemented a number of microfinance partnerships. In a bid to increase profits, the bank explored risk-sharing opportunities with other affiliates in the Economic Community of Central African States, allowing Ecobank to execute larger deals and consequently charge bigger fees and commissions.

In just over two years, Ecobank Brazza opened five branches and now caters to more than 22,000 customers, providing them with cashpoint and card facilities.

The bank's expansion has been impressive in the short space of time it has been operating in the central African state. It broke even after just 11 months and continues to attract customers at a steady pace.

Guy Poupet, chairman and CEO, BRD-Groupe Société Générale

Guy Poupet, chairman and CEO, BRD-Groupe Société Générale

Romania

BRD-Groupe Société Générale

Romania has been buffeted by the exposure of retail borrowers to a volatile exchange rate, funding challenges for the Greek-owned banks that account for about a fifth of the country's banking system and one of the region's toughest fiscal austerity packages, but BRD-Groupe Société Générale has coped better than most.

Its return on equity remained high, at 27%, its Tier 1 capital increased by 26% to help take the strain of deteriorating economic conditions, and a non-performing loan ratio of 7.3% at the end of 2009 was healthier than that of many peers.

"In 2009 and 2010, the [Romanian] banks were subject to multiple pressures related to the increase in the costs of risk, and especially related to how to ensure the profitability of their operations given the low demand for banking products. For us, it was an exercise in flexibility and adjustment to the effects of the crisis, which we completed successfully. We managed to remain profitable and to control our cost of risk in a manner that allowed us to remain very present in the market," says Guy Poupet, chairman and chief executive officer of the bank.

The bank has sought to compensate for slow loan growth by intensifying cross-selling initiatives across its large customer base of 2.5 million people. In 2010, it notched up two firsts in Romania, with a customisable bank card and a contactless payments solution produced by Mastercard.

"Our strategy is based on innovation; we will continue to launch new, innovative products for the Romanian market, products that can grant us the title of 'innovation leader'. Our other main goal is certainly to try to improve the quality of our customer relationship management, which has proved to be one of the keys to success during this very complicated period," says Mr Poupet.

Dmitry Orlov, executive president, Bank Vozrozhdenie

Dmitry Orlov, executive president, Bank Vozrozhdenie

Russia

Bank Vozrozhdenie

Russian banks outside the top tier have a mixed reputation, but Bank Vozrozhdenie is a rare gem that is attracting international investors. Russia's 25th largest bank by Tier 1 capital, Vozrozhdenie has a free float on the stock market of more than 40%; its largest shareholder and executive president, Dmitry Orlov, has no other strategic shareholdings; and it focuses on small and medium-sized enterprises and associated retail customers.

This combination of a coherent management strategy and diversified loan portfolio, together with a very conservative approach to risk and liquidity management, kept the bank in good health during the tough times of 2009.

"The most important thing is that we were able to maintain high capital adequacy and to retain control of liquidity risk and asset quality. Our funding strategy has played an important role - we have proposed new types of deposits for private and corporate clients and thus attracted customer deposits. Our financial market borrowing has always been less than 10% of our liabilities, and in the crisis we have reduced this share," says Mr Orlov.

The only wholesale funding the bank required came from the European Bank for Reconstruction and Development - a sign of faith in the bank's strategy and governance. At the same time, a keen focus on non-interest income sources has helped the bank raise fee income to almost 36% of the total, one of the highest in the Russian banking sector.

"In the coming year, if proper development of the economy does occur, the banking system can grow by 15% to 20%. After the crisis, the banking sector has become more competitive, and we need more effort in the fight for the high-quality borrower. In these circumstances, our task is to focus on business development in our client niche and offer customers a high-quality and technological banking service," says Mr Orlov.

Rwanda

Bank of Kigali

Bank of Kigali's scooped this year's Rwanda award yet again thanks to its sound approach to lending and efficient policies. Although net profits declined from the previous year's figures by 6%, the bank managed to grow its Tier 1 capital by 17% in 2009. Non-performing loans fell from 15.4% in 2008 to just over 8% in 2009.

As with many other countries in Africa, Rwanda has a very large unbanked population and the aim of Bank of Kigali is to reach out to this segment. In order to do that, the bank has launched new products and opened nine new branches in 2009-10.

In 2009, banks in Rwanda faced a serious liquidity crisis as a result of the global recession. Major depositors withdrew their deposits in favour of other investment opportunities, leading to an increase in the cost of deposits and higher non-performing assets. The overall profitability of the banking sector dropped by 59% compared with 2008.

In this context, Bank of Kigali's efforts are particularly laudable as the bank chose not to increase lending rates following the liquidity crisis. This in turn helped the bank retain its customer base and attract more new clients.

The bank continues to boast strong market positioning, with shares of 26%, 27% and 26% in total assets, loans and customer deposits, respectively. Bank of Kigali's profits accounted for 70% of the entire Rwanda banking sector's profits and, as a result, the bank continues to enjoy a solid reputation.

The bank is looking to launch mobile-phone banking in a bid to reach out to as much as 90% of the population and hopes to bring products such as Visa cards and ATMs to more Rwandans.

Saudi Arabia

National Commercial Bank

The Arab world's largest bank, Jeddah-based National Commercial Bank (NCB) managed to perform strongly in 2009 with healthy growth in Tier 1 capital, assets and a 96% increase in pre-tax profits to SR4.12bn ($1.1bn), after a sharp drop in profits in 2008.

While many Saudi banks had to take large provisions on their exposures to the troubled Saad and Algosaibi corporate groups, which depressed the banks' profitability, NCB had already done so in 2008, clearing the way for a better 2009.

The bank also saw a significant 14.3% growth in Tier 1 capital to $7.64bn, making it the largest bank in the Middle East and well ahead of its nearest rival in Saudi Arabia, Riyad Bank. Amid turbulent conditions, NCB managed to maintain a solid return on equity of 12%, compared with 12.4% in 2008, and showed a 16% increase in assets, the highest of the major Saudi banks, to $68.7bn, as a result of expanding corporate lending and cross-selling. In the process, however, the bank's non-performing loan ratio has crept up to 4.5% in 2009 from 2.5% in 2008.

NCB has completed the acquisition of a 64.7% stake in Türkiye Finans Bank, the leading Islamic bank in Turkey. NCB's entry into the expanding Turkish market emphasises the bank's involvement in Islamic banking and the importance of a strong domestic market position for any regional acquisitions.

The state-owned bank, slated for privatisation, posted net profits of SR3.47bn for the first nine months of 2010, adding that net lending income had risen by 2.9% in the nine-month period. This suggests that 2010 will be another growth year for profits at NCB.

Draginja Djuric, CEO, Banca Intesa ad Beograd

Draginja Djuric, CEO, Banca Intesa ad Beograd

Serbia

Banca Intesa ad Beograd

For the third year in a row, Intesa wins in Serbia, successfully combining the largest market share with efficiency. Its profits grew in 2009, a year when leading rivals reported sharp declines in profitability, and its strong capital position allowed continued credit expansion when competitors were putting their plans on hold.

"Owing to its liquidity and good capitalisation, during the past year Banca Intesa continued with its regular credit activity, resulting in significant competitive advantage. The fact that we were the most active bank in the Serbian market in terms of lending operations did not have an adverse effect on our credit portfolio quality. We are particularly proud of the fact that our clients perceive us as a stable and reliable pillar, which is confirmed by their greater loyalty and increasing client base," says Intesa ad Beograd's chief executive officer, Draginja Djuric.

The bank's non-performing loan ratio remains in line with or better than its peers, and it has continued to shave percentage points off its cost-to-income ratio, down to just under 43% in 2009. Meanwhile, the bank's 14.9% share of the loan market is well funded by a 16% share of deposits, which rose by 2.1% in 2009.

The bank's offering is very much universal, but Ms Djuric sees particular potential in the coming year in financing export-oriented production, infrastructure development projects, agriculture and the small and medium-sized enterprise sector. "We are also the undisputed [Serbian] leader in the bank card business, which will continue to be of strategic importance to us in the coming period. In the end, our core business strategy is to deliver added value to our clients, which is why we plan further investment in the quality of our services," says Mr Djuric.

Viswanathan Sundaram, CEO, Commercial Bank Sierra Leone

Viswanathan Sundaram, CEO, Commercial Bank Sierra Leone

Sierra Leone

Commercial Bank Sierra Leone

Commercial Bank Sierra Leone managed to impress the judges with its rise in profits, improving market share and all-round sound investments.

In 2009, the bank's Tier 1 capital grew by 27.05% and net profits rose 95.5% from the previous year's figure to 391m leone ($93,000). Its chief executive officer, Viswanathan Sundaram, says: "Doubling the net profit to enhance shareholder return, despite the tough market conditions, was the main success achieved by us in the past year."

Growth in net profits was achieved mainly through sound lending and efficient investments. The bank's focus in 2009 was on sticking to the basics of banking. As a result, customer deposits increased by 43.33% during the year, reflecting a strong brand and public confidence in the bank's services.

Highly disciplined capital, liquidity and risk management were the pillars of this growth, which led to a robust increase of 191.77% in the bank's trading income. The bank also concentrated on curtailing costs throughout the year, leading to an operating expense growth of only 0.96%.

The liquidity norm of a daily average of 12% prescribed by the central bank of Sierra Leone was never breached and cash holdings held in branches remained within insurance limits, leading to a reduction in operating costs and sound management that was reflected on the balance sheet.

Singapore

OCBC Bank

OCBC Bank last year took the bold step of acquiring ING Asia Private Bank, one of the top five private banks in Asia. This acquisition marks a strategic transformation in the bank's goal to become a leading player in private banking and wealth management. The acquisition roughly trebled the bank's private banking business, with assets under management at $23bn and more than 7000 clients across Asia, served by a team of 200 relationship managers.

The flow through to the bottom line is evident in the bank's 12.1% increase in net profits and boost in return on equity to 12.2% in 2009, when compared with 2008. Likewise, Tier 1 capital rose from 14.9% to 15.9% in the same period. Overseas expansion continued despite the economic downturn.

The bank added new branches to its network and launched new services for its customers. In Malaysia, for instance, OCBC's wholly owned Islamic banking subsidiary opened four new branches, while in Indonesia, OCBC opened 18 branches and 15 ATMs. OCBC is the first Singapore bank to participate in China's pilot programme of settling cross-border trade using renminbi. This new service helps support its Singaporean customers who have trade transactions with their China counterparts.

Slovakia

Postova Banka

Postova is not one of Slovakia's top-tier banks, but it has certainly enjoyed the most dramatically improved performance over the past 18 months. In December 2007, Istrokapital, a private equity fund with experience in central and eastern Europe, upped its existing majority stake in Postova Banka to more than 93%, intensifying its turnaround strategy for the bank.

For 2009, the bank's profits leapt by 143% despite the economic slowdown, and it achieved the fourth largest profits in Slovakia, punching well above its asset base. Those assets continued to rise rapidly, by 35%, alongside a 34% increase in deposits, with a 6.5% growth in overall customer numbers, as the bank's partnership with the Slovak postal service continues to reap rewards.

"The source of our success lies in our products and services, for which our philosophy is to be simple, clear and available for all clients in the broad mass market. It was a year when we came to the market with unbeatable deposit products, which brought us the largest increase in customer funds in the history of the bank," says Postova Banka's chairman, Marek Tarda.

The deposit product was an unlimited term deposit, which combined a guaranteed interest rate of 2.5% with the ability to withdraw money without paying a penalty in lost interest. There was no competition in the market for this product at the time it was launched.

"Our goal in the coming years will be to enter the top five largest banks in Slovakia and become a leader in retail banking. We see great opportunity in the fulfilment of these resolutions in the use of our strategic partnership with the Slovak Post, thanks to which we are close to all clients in every region, in every city," says Mr Tarda.

Radovan Jereb, CEO, Abanka Vipa

Radovan Jereb, CEO, Abanka Vipa

Slovenia

Abanka Vipa

There were steep declines in profits, and even some losses among the top-tier Slovenian banks in 2009, but Abanka Vipa bucked the trend, with profits inching up 3% to €22m. A healthy non-performing loan ratio of less than 4% and a cost-to-income ratio of 47% are both superior to the bank's peers.

"In times of continuing uncertain conditions in the financial markets and above all in the real economy, Abanka successfully responded to counteract the effects of the crisis. With experience, a lot of knowledge and ingenuity, we were able to attain most of our business and financial objectives and to follow up our strategy," says chief executive officer Radovan Jereb.

With the bank's well-timed initial public offering in 2008 having established a strong capital position, it was also able to boost liquidity in July 2010, raising the first syndicated loan of the year in the Slovenian banking sector, for €175m. In an environment of subdued demand for credit, Mr Jereb says the bank will place emphasis on fee-based income in 2011, including transaction and card services.

Other services that he believes will be valuable for the bank include private banking and investment products and trade finance. The bank is also actively marketing products to help customers hedge interest-rate and exchange rate risks.

"The main concern in 2011 will continue to be the safety and stability of the bank's operations. We will very carefully follow developments in international and domestic financial markets, where there are a lot of opportunities, in order to respond quickly to the demand by offering adequate services," says Mr Jereb.

The Banker pays tribute to Ales Zajdela following his death in an accident in April 2010. As chief executive officer, Mr Zajdela steered Abanka to winning this award in 2009. We extend our sympathy to his family and colleagues.

Sim Tshabalala, group deputy CEO, Standard Bank, and chief executive, Standard Bank South Africa

Sim Tshabalala, group deputy CEO, Standard Bank, and chief executive, Standard Bank South Africa

South Africa

Standard Bank South Africa

South Africa's economy is yet to reap the benefits of the recent football World Cup and, with the impact of the global financial crisis gradually spreading to emerging markets, Standard Bank managed to navigate efficiently through yet another challenging year.

The bank's operations felt the impact of a significant decline in South African economic activity and a general erosion of wealth, with Standard Bank's 2009 profits sliding 17% from the previous year to R11.71m ($1.7m). Both the personal and corporate banking markets were hit by the severity of the downturn and non-performing loans consequently increased. However, the bank adopted a short-term tactical approach of actively limiting costs, making sound decisions that appealed to the awards' judging panel.

The bank's Tier 1 capital grew by 4% in 2009 and the investment and corporate side of the business demonstrated resilience in difficult circumstances. In maintaining a balance between preserving capital, liquidity and revenues, the investment and corporate division was able to absorb significant increases in provisions for bad debts and managed to produce acceptable profits.

Risk appetite was curbed, resulting in lower asset growth, yet Standard Bank remained focused on developing its markets and its profitability remained sound. Strong liquidity and capital allowed the bank to invest in growth and customer service, ensuring that it achieved the country's highest ever independent customer satisfaction rating.

Sim Tshabalala, CEO of Standard Bank South Africa, says it will continue to expand. "As the largest bank on the continent, we feel that Johannesburg and London are the logical hubs for our strategy, which is diversification rather than concentration of business activity," he says. "Our aim in South Africa is therefore to strengthen our competitive position within the local market. We firmly believe we have the right strategy in place and remain confident about the future."

Chong Hwi Lee, president and CEO, Woori Bank

Chong Hwi Lee, president and CEO, Woori Bank

South Korea

Woori Bank

Few banks can boast a 307.6% boost in net profits in a year, especially at a time of global financial crisis, but Woori Bank achieved just that in 2009.

The bank embarked on an ambitious and successful product launch programme last year to bring in new customers, from free accident insurance for cyclists to a three-month term deposit with quarterly increases in interest rates. Woori Bank also enhanced its operations overseas. In China, it began offering diverse financial products for Chinese as well as Korean customers in that market. Woori Bank was also the first South Korean bank to launch debit-card services and was granted a licence to deal in derivatives and conduct renminbi cross-border settlement operations.

In the domestic market, the bank focused on building a stable base in housing finance. By the end of 2009, the bank had a 63.5% market share in this segment. Despite the liquidity shortage in the aftermath of the global crisis, Woori Bank maintained the target ratios set by the South Korean authorities, with a 21.6% increase in Tier 1 capital. The bank strengthened its capital position by successfully issuing Won100bn ($88m) of hybrid bonds and Won300bn of common stock, to cushion itself against any future shocks.

Woori Bank president and chief executive officer Chong Hwi Lee says: "Woori Bank has been named bank of the year in South Korea for the fourth time. We appreciate these awards as a recognition of our efforts to deliver advanced services that contribute to customer happiness and prosperity, and it is a tremendous motivation for all of us to continue working towards our goal, namely to become the leading bank in Asia."

He adds: "In order to achieve the goal, we will continue to focus on providing innovative products and quality services to our customers and remain steadfast in our commitment to giving back to the community in which we operate."

Maria Dolores Dancausa, CEO, Bankinter

Maria Dolores Dancausa, CEO, Bankinter

Spain

Bankinter

Bankinter generated solid recurring results and a level of solvency in keeping with its risk profile in 2009. With post-tax earnings of €254.4m, up 0.84% on the previous year, based entirely on recurrent revenues with no exceptional items, Bankinter had a successful year despite the negative macroeconomic perspective facing the industry, says Maria Dolores Dancausa, its chief executive officer.

She adds: "Bankinter also had the best non-performing loan and coverage ratios of the Spanish banking industry, and this happened in a singular year in which the rest of the domestic banks saw their net profits fall by 24% on average."

One of the highlights of the year was Bankinter's acquisition from Royal Bank of Scotland of the latter's 50% stake in Línea Directa Aseguradora. As a result, Bankinter now controls 100% of the leading direct insurer and the fifth largest motor insurer in Spain. This provides the bank with potential commercial synergies and an optimistic outlook for business growth.

In 2009, Bankinter also managed to place €3.596bn in six issues (collateralised debt, mortgage asset-backed securities and subordinated debt) in the wholesale markets, against very difficult conditions, demonstrating the solvency and credibility of the bank with investors around the world. As a result of this finance, the bank was able to continue to meet its financing requirements. The bank also recorded many successes in its customer operations, attracting 73,000 new customers.

Bankinter wants to set the benchmark in European commercial banking for medium- and high-income clients, and to play a leading role in transforming the Spanish financial sector, in which it has a clearly differentiated position. Ms Dolores Dancausa says: "It is this differentiation that has enabled us in the past, and will continue to provide us with new opportunities in 2011, to continue a growth path based on innovation as well as on a solid foundation of liquidity, solvency and capital."

G L H Premaratne, CEO, Sampath Bank

G L H Premaratne, CEO, Sampath Bank

Sri Lanka

Sampath Bank

Although the military conflict in Sri Lanka finally ended in May 2009, unsettled economic conditions prevailed for the rest of the year, posing many challenges for banks attempting to expand business.

Sampath Bank's chief executive officer, G L H Premaratne, says: "Credit demand slowed for the first time in recent history, mainly due to shrinking export markets, which were hit by the world recession and high interest rates internally. Maintaining net interest margins became a challenge, amid volatile fluctuations in market liquidity and interest rates. Rising non-performing loans [NPLs] were another matter of concern."

Despite the challenges, Mr Premaratne says Sampath became the only Sri Lankan bank in 2009 to record positive credit growth (of 3.17%). Deposits and assets grew by 17.5% and 12.5%, respectively. Key financial ratios improved considerably, while the NPL ratio was held almost unchanged. The bank opened 19 new branches.

Last year, the bank introduced money-market-linked loans, enabling customers to benefit from low rates in the money market. The co-branded Cargill Debit Card was rolled out in association with Sri Lanka's largest retailer, the first card of its kind in south Asia. Sampath also centralised its credit approval process.

"Growth will accelerate in 2010, with a record 40 branches to be opened, without compromising the bank's profitability," says Mr Premaratne. "NPL coverage will be further enhanced, with provisions up to 100% on certain hardcore NPLs, ignoring the collateral held. Creation of unparalleled shareholder value too will continue."

Mr Premaratne sees opportunities for expansion in credit to tourism, power generation, mortgages and credit cards. "Furthermore, the impending economic take-off may give rise to non-organic growth opportunities, which Sampath Bank would pursue actively," he says.

Sudan

Omdurman National Bank Sudan

The global financial crisis as well as its negative impact on the movement of capital proved a strain on Omdurman National Bank of Sudan (ONB) over the past year.

However, a significant capital increase coupled with sound management policies ensured that the bank registered a profit and increased its assets.

ONB also managed to grow its Tier 1 capital by 1.2% in 2009 and net profits increased by 11.4% from the previous year's figures.

ONB reported net profits of Sd$50.87m ($21.10m) and it continued to lead the Sudanese banking sector on all financial indicators.

The bank has focused on the effective management of resources and funds, maximising its returns. It also invested heavily in new technologies to attract a wider client base and ensure existing ones remain abreast of new products.

One of the factors that caught the judging panel's attention was the focus on microfinance and retail banking initiatives that ONB is looking to develop. In a bid to contribute to bettering the economy, the bank aims to extend its services to wider segments of Sudanese society.

Despite being a fast-growing economy with considerable infrastructure investments, Sudan still faces significant economic problems. Although it continues to implement the macroeconomic reforms recommended by the International Monetary Fund, the country still needs to develop from a very low level of per capital output.

Increased oil production has contributed to some revival of local industry, and expanded export processing zones helped to sustain gross domestic product growth at about 6%.

These gains, along with improvements to monetary policy, have stabilised the Sudanese exchange rate. In this challenging context, ONB has performed well and was judged a worthy winner of this year's award.

David Wright, CEO, FNB Swaziland

David Wright, CEO, FNB Swaziland

Swaziland

FNB Swaziland

It was a strong year for FNB Swaziland, with the bank posting strong financials across the board in 2009. Tier 1 capital grew by 34% on the previous year and net profits rose 15% to 62.29m lilangeni ($8.73m).

The bank restructured its business to focus its operations on retail banking. With this in mind, FNB Swaziland invested heavily in electronic banking in order to offer its client base new products. As a result, the bank has increased its client base by 40% over the past couple of years. Debit cards were introduced to the Swazi market as well as a single platform for business and corporate internet banking users.

As a small, export-dependent economy, Swaziland was badly hit by the global downturn. In this climate, FNB took bold measures, the effects of which were reflected in its end-of-year figures.

In a bid to become less reliant on the country's sugar industry, the bank implemented a 30% reduction in the exposure of its loan and overdraft book to that sector. While the sugar industry still dominates the bank's books, FNB has also spread its investments across 20 other industries.

FNB's asset-based finance keeps growing at an average of 10% year on year and cost to income has decreased steadily. The bank enjoys a good reputation in Swaziland as an innovative financial institution that has thrived while offering its customers new, up-to-date products previously unavailable in the country.

The bank has been able to post year-on-year increases in pre-tax profits of 15% in 2008 and 22% in 2009, respectively, while other players in the southern African market reported negative figures all round. The bank has managed to keep its costs under control and the management has remained stable throughout the tumultuous past year.

Fredrik Rystedt, country senior executive, Nordea Bank Sweden

Fredrik Rystedt, country senior executive, Nordea Bank Sweden

Sweden

Nordea Bank

Nordea Bank's relatively low exposure to the more troubled Baltic economies has held it in good stead, coupled with its growth plan to capture a larger share of the Swedish corporate merchant banking market.

Fredrik Rystedt, country senior executive for Nordea Bank Sweden, says that the effects of the macroeconomic environment for Nordea have been mixed during the year as the Nordic economies managed to stabilise.

He says: "We were probably the first bank in our region that launched a comprehensive and proactive growth plan to accelerate out of the downturn. This strategic plan, together with a strong starting point, in terms of capital position has provided us with the opportunity to work closely with our customers through the financial turmoil and at the same time focus actively on the longer-term horizon."

Retail, private and corporate customer numbers have risen, with a record level of new 'gold' and private banking customers, delivering a continued high growth rate in mortgage lending and investment products. Mr Rystedt adds that Nordea has strengthened its relationships with its large corporate customers, resulting in Nordea's corporate merchant banking segment gaining a larger market share.

The solid results, strong customer development and ongoing implementation of the group's initiatives are laying a strong foundation for attaining long-term financial targets. Mr Rystedt says the bank will continue to focus on its proactive approach to customer acquisition and to developing those relationships. "We see the potential to further develop our relationships with large corporate customers and, since our corporate merchant banking business is developing according to plan, we see further growth opportunities there," he adds.

Hans-Ulrich Meister, CEO, Credit Suisse

Hans-Ulrich Meister, CEO, Credit Suisse

Switzerland

Credit Suisse

In 2009, Credit Suisse continued its recovery to win the top Switzerland award for the second year running. A sustainable performance, strong results and excellent shareholder returns combined with new business successes in private and investment banking have enabled Credit Suisse to gain significant market share and produce one of the industry's highest returns on equity.

Net income at the end of 2009 stood at SFr6.7bn ($6.9bn), return on equity at 18.3%, net new assets were SFr44.2bn and, with a Tier 1 ratio of 16.3%, Credit Suisse was one of the world's best-capitalised banks.

For Hans-Ulrich Meister, chief executive officer of Credit Suisse, the most important challenge in 2009 was striking the right balance between the bank's three main priorities - working with clients, executing its client-focused, capital-efficient strategy and adapting to the new regulatory environment.

On regulation, Mr Meister says: "We were helped by the fact that we had anticipated the development of the new capital and liquidity regimes and had already strengthened our capital and liquidity management. This meant that we were able to focus on our clients throughout the crisis and were not distracted by managing issues. We had hardly any turnover among our key coverage people and our clients were covered consistently when they needed our advice and expertise most."

Credit Suisse repositioned its investment banking business and acquired a prime fund business to further strengthen its services to hedge funds. In asset management, the bank streamlined its portfolio by selling its non-core traditional investment strategies business in Europe (excluding Switzerland), the US and Asia-Pacific.

Mr Meister sees growth potential across Credit Suisse's businesses in Switzerland, despite the complexity of client requirements, due to the integrated approach the bank takes across asset classes and geographies.

Thomas T L Wu, chairman, Taishin Bank

Thomas T L Wu, chairman, Taishin Bank

Taiwan

Taishin International Bank

Taishin International Bank turned in a record performance last year, with net profits up 123% and a halving of the non-

performing loan ratio to 0.58%, while boosting Tier 1 capital by 22.8%.

The bank embarked on a number of initiatives in the year, mainly to deepen its customer relationships and consolidate customer management. The bank also authorised branches to implement micro-marketing activities with a view to building up its relationship with communities.

In a synergy-enhancing exercise, Taishin launched several projects that involve wholesale and retail banking groups to provide customers with a more comprehensive offering.

The bank also implemented a more sophisticated credit scoring system for its borrowers, combining a traditional behaviour scorecard with a rating to the international FICO standard. On the cost-efficiency front, Taishin put in place a business-process management scheme.

Taishin has put itself in a leading position in the Taiwanese market through its IT development, its customer relationship programme and its innovative thinking, such as its mobile banking service on i-Phone.

Taishin Bank chairman Thomas T L Wu says: "Intense competitive pressures and a low-interest-rate environment have driven spreads down to 1.5% or less in Taiwan. Taiwan's overbanked market has trailed other regional markets in terms of growth... In 2010, Taishin reclaimed its status as one of the most profitable banks in Taiwan."

Mr Wu says Taishin will make the most of Taiwan's improving relations with China, adding: "The last thing Taishin can afford to do is sit still and just ride the domestic recovery. We must both deepen our share of the local market and plant seeds in faster-growing overseas markets... We expect our growth to be driven by organic initiatives, but we never rule out inorganic opportunities if they present themselves."

Tanzania

Standard Chartered Bank Tanzania

Once again, Standard Chartered Bank Tanzania managed to produce a good set of results in a challenging environment.

In 2009, it grew its Tier 1 capital by 45% from the previous year and increased net profits by an impressive 36%.

The bank proved innovative in focusing much of its operations on fee-based business. It also chose to focus on its existing client base at a time of great turmoil in the sector. As a result, Standard Chartered cemented its relationship with its customers, who have proved loyal in return.

However, Standard Chartered Tanzania still needs to reduce its costs. Its cost-to-income ratio remains high at 60%, having eased a notch from the previous year's 61%.

The judges were impressed with the way the bank had navigated the markets in difficult times while still managing to attract large corporate clients and launch new products.

Mobile banking and more insurance products were introduced to the Tanzanian market and the bank updated its network of ATMs. Standard Chartered also set up a fixed-income trading desk and organised seminars on developing the secondary bond trading market.

The bank is also leading the way in sustainable community initiatives and was involved in anti-malaria campaigns as well as other local causes.

This award recognises the efforts made by Standard Chartered to remain the bank of choice in an increasingly competitive Tanzanian market. It has shown innovation coupled with boldness at a time when few other local banks showed the courage to charge ahead with such moves.

Chartsiri Sophonpanich, president, Bangkok Bank

Chartsiri Sophonpanich, president, Bangkok Bank

Thailand

Bangkok Bank

Bangkok Bank is Thailand's leading financial services provider. Its major strengths include a strong brand and well-developed relationships with most of the country's largest corporates, as well as an extensive international branch network.

Despite a 3.2% decline in total lending last year in difficult overall economic conditions, Bangkok Bank was able to boost its fee and commission income, reflecting its strong fundamentals and commitment to remaining close to its customers, maintaining asset quality and retaining a healthy level of liquidity. The bank's capital adequacy ratio stood at 15.5% with a Tier 1 ratio of 12.6%, comfortably above the minimum level required by the Bank of Thailand.

Bangkok Bank's strengths in business lending, international banking and retail and investment banking allow each of these areas to support one another, helping customers to raise funds and build their businesses offshore using its international network. In a breakthrough for the Thai banking industry, Bangkok Bank last year became the first domestic bank to establish a locally licensed bank in China. The new fully owned subsidiary enjoys local bank status and provides the bank with the ability to offer a wide range of banking services.

Bangkok Bank president Chartsiri Sophonpanich says: "The worldwide economic crisis impacted on Thailand's export-driven economy and the country experienced several quarters of recession, only beginning to recover in the last quarter of [2009].

"We successfully rose to these challenges, coming out of 2009 in strong financial shape and improving our performance across a broad range of indicators in 2010.

"The key trend we see is internationalisation - with more opportunities for Thailand in the wider Asian economic community and a more open financial sector in Thailand with foreign banks becoming more active in the local market."

Togo

Ecobank Togo

Ecobank Togo continues to impress the judges thanks to its network spanning 30 African countries. Ecobank is credited with bringing modern banking to some of the continent's poorest countries, and Togo is no exception.

Despite operating in such challenging conditions and with the effects of the global downturn still affecting these markets, in 2009 Ecobank managed to grow its Tier 1 capital by 44% from the previous year.

As with many banks in the region, costs remain high and Ecobank has failed to curb its cost-to-income ratio, which rose in 2009 to 67% from 61% in 2008.

However, the bank's overall achievements are laudable. It raised CFA Fr5bn ($10.2m) in accordance with the Togolese central bank's requirements and made notable investments to grow its branch network.

Excluding pure financials, the bank underwent two inspections, which now means that its balance sheet is stress-free, and it also boasts adequate capital levels to accommodate unexpected credit losses.

This in turn allows the bank to be better positioned to increase its business volume and entrench furthermore its position as market leader in Togo.

The bank has continued to invest in effective customer service and organises regular events to keep its clients informed on changes and new products available.

Thanks to its strong brand image, Ecobank Togo continues to attract new customers and keep existing ones satisfied. It remains a leader in local banking in terms of asset size and deposits coupled with having the widest branch network in the country.

Richard P Young, managing director, Scotiabank Trinidad and Tobago

Richard P Young, managing director, Scotiabank Trinidad and Tobago

Trinidad and Tobago

Scotiabank Trinidad and Tobago

With a solid 10-year double-digit compounded annual growth rate, Scotiabank Trinidad and Tobago can boast more than a decade of consistent earnings. Despite a severe reduction in the country's demand for borrowings, the bank grew its net income by 5% and achieved an impressive share of the deposit market.

The bank's return on assets and return on equity (the latter was 22.86%) are both well above the industry averages and its productivity is the best in the industry with a cost-to-income of 40.75%.

Richard P Young, managing director of Scotiabank Trinidad and Tobago, says: "Key to the bank's continued success has been the continued focus on our core purpose of helping our customers become financially better off by providing relevant solutions to their unique needs. The bank successfully implemented a relationship-focused strategy that created stronger and more profitable customer relationships. The result was greatly improved levels of customer satisfaction, retention and referrals."

The bank also focused heavily on treasury management and controlling operational costs. It achieved the lowest possible cost of funding and capital by building a business base through retained earnings, day-to-day banking and selective capital issues.

Scotiabank was the first and only bank in Trinidad and Tobago to have three bonds listed when the Trinidad and Tobago Stock Exchange launched the country's corporate bond market in June 2010.

In the same month, Scotiabank was in the lead in launching mobile banking services in Trinidad and Tobago, enabling customers to perform basic day-to-day banking transactions from web-enabled mobile phones. Scotiabank will increasingly use online and mobile channels to lessen the use of paper and improve the speed and convenience of its service delivery.

Alia Abdallah, CEO, Banque de Tunisie

Alia Abdallah, CEO, Banque de Tunisie

Tunisia

Banque de Tunisie

Tunisia's oldest bank, Banque de Tunisie, continues to post good results in a challenging environment.

Its Tier 1 capital grew by 8.8% in 2009 and it reported an increase of 5.2% in net profits from 2008. The cost-to-income ratio eased a touch to 29.5% from 2008's 30%, while non-performing loans improved from 6.7% to 5.5%.

The bank plans to open about eight branches a year and is looking to introduce new banking products to its client base. Deposits have increased by 18% and the bank's market share continues to grow on the back of modernised banking facilities that attract more investors. In terms of assets, the bank grew by 9.04%.

Banque de Tunisie's chief financial officer, Zoheir Hassen, says: "We are pursuing a modernisation programme that is paying off in terms of increased market share and various independent bodies have [confirmed] our leadership in the sector."

Through its newly created customer relationship-management division, the bank aims to target new segments of society and bring its banking standards in line with international norms.

Thanks to its skilled workforce, Banque de Tunisie has been instrumental in ensuring that Tunisia is recognised as an important financial hub in north Africa, able to link African banks with their European peers. Its organic growth continues apace. The judges agreed that Banque de Tunisie provides innovative and up-to-date products.

Ergun Özen, CEO, Garanti Bank

Ergun Özen, CEO, Garanti Bank

Turkey

Garanti Bank

BBVA's purchase of a 25% stake in Garanti Bank in November 2010 for $5.8bn allowed an exit for GE Capital and opened up new potential for Turkey's second largest bank by assets. It also crystallised the value of a highly successful institution in one of the world's most vibrant banking markets.

Net profits up 64% in 2009, a return on equity of almost 27%, achieved with a cost-to-income ratio that was slashed by 13% to less than 40%, and a non-performing loan (NPL) ratio of just 4% - these are the measures of a financial profile that would be the envy of most banks. Prudent risk management has not been neglected, with the bank's liquidity aided by a 42% rise in customer deposit funding, and extraordinary profits from trading government bonds used to boost loan-loss provisioning and build a discretionary reserve of Tl330m ($228m) against any market volatility.

"Garanti swiftly responded to the changing market conditions during this period. We placed the utmost importance on asset quality metrics and attained the highest improvement in collections and new NPL inflows among peer banks. We followed a selective growth strategy in lending products and focused on high-yielding lira retail and commercial loans. In this context, we attained the [Turkish] leadership position in consumer loans, excluding credit cards, for the first time," says chief executive officer Ergun Özen.

In anticipation of a sustained low-interest-rate environment, Mr Özen is concentrating on maximising fee income opportunities in 2011. He also intends to pare down costs still further through a focus on lean processes and organisation.

"We believe that synergies to be created with our new shareholder, BBVA, will further sharpen our competitive edge and support Garanti in entering yet another accelerated growth phase," says Mr Özen.

Turkmenistan

State Bank for Foreign Economic Affairs

In the tightly controlled Turkmen banking sector, the State Bank for Foreign Economic Affairs (Turkmen Vnesheconombank, TVEB) remains the government's principal tool for banking activity. Its Tier 1 capital increased by 28.4% in 2009, entrenching its position as the country's dominant banking institution.

In addition to foreign-exchange transactions, mostly conducted for the state or state-owned enterprises, TVEB is also the vehicle for financing national development programmes, and is active in helping small-business start-ups.

Its focus over the past year has been on expanding the country's access to international lines of credit. This has been achieved by strengthening risk management and documentation processes, to negotiate higher credit-line quotas with foreign banks.

In addition, TVEB has used its growing correspondent network as a way to enhance the bank's own skills base. TVEB's correspondent banks overseas are helping to organise seminars in Turkmenistan, or are taking the bank's staff on secondment for extra training.

The bank has raised technology standards for trading on the international currency markets, and its next aim is to follow this up with improved retail technology. In particular, the bank is planning to introduce chip-and-pin technology for its Visa card offering, as well as making the cards usable at ATM machines.

Douglas Cochrane, managing director, Scotiabank Turks and Caicos

Douglas Cochrane, managing director, Scotiabank Turks and Caicos

Turks and Caicos Islands

Scotiabank Turks and Caicos

The extremely challenging conditions in 2009 spared no one in the Turks and Caicos Islands financial sector, Scotiabank Turks and Caicos included. In order to ensure sustained profit returns, the bank revisited its 2009-12 Strategic Plan to realign certain goals and tactics to improve its ability to deliver a profit and benefit customers throughout the year.

As a result, the bank launched a new set of products for the small business customer, which included a credit line, credit card, term loan and overdraft facility, and has seen a year-on-year increase of 29% in sales to small businesses.

The bank also managed to double the number of companies in Turks and Caicos enabling their customers to pay their bills via its internet banking solution.

Douglas Cochrane, managing director of Scotiabank Turks and Caicos, says: "Scotiabank Turks and Caicos successfully increased its market share in difficult financial times by carefully managing to obtain new quality customers who were seeking stability in their local bank. The small and medium-sized enterprise segment of the economy requires a strong partner in its financial institution and Scotiabank came to the market with new products and services that appeal to small-business owners and operators."

Due to the economic downturn that has seen gross domestic product in Turks and Caicos decline by as much as 25%, Scotiabank offered a customer assistance programme to its most seriously affected borrowing customers. The programme allowed the bank to provide more flexibility in restructuring loan facilities. Scotiabank is the biggest lender in Turks and Caicos, with currently 55.8% of the retail loan market. This has grown from 51.4% in 2009.

Scotiabank will continue to strengthen its ties in the small-business sector. It also sees strong growth opportunities for its new private bank, Scotia Private Client Group, and its wealth management offering.

Philip Odera, managing director, Stanbic Uganda

Philip Odera, managing director, Stanbic Uganda

Uganda

Stanbic Uganda

Stanbic Uganda managed to post a healthy set of returns in 2009 in what remains a challenging environment.

Despite the introduction of new players in the Ugandan banking arena, providing Stanbic with tough competition, its Tier 1 capital grew by 14.9% in 2009, while net profits rose by 21.3% from 2008 figures.

The bank was involved in an impressive diversification of income-generating streams that ranged from signing a $30bn line of credit with development agency Proparco - aimed at the energy and infrastructure sectors - to partnering with Payment System Uganda to manage efficient credit recovery.

Return on equity has remained high at 45.1%, despite suffering a slight drop of 3% from 2008 figures.

Stanbic Uganda's managing director, Philip Odera, still sees opportunities in the unbanked and underbanked segments of the Ugandan market, "and it remains our intention to focus on establishing effective solutions and products that serve the needs of this end of the market", he says.

With this in mind, the bank has launched new business platforms to speed up banking processes and introduced an ATM monitoring device to notify the business of faulty or empty cash machines, something customers had voiced concern about, showing once again Stanbic's commitment to customer service.

The bank has also been at the forefront of the reconstruction of war-torn Uganda and played an important role in supporting farmers returning in their millions to the country after fleeing the civil war. The bank has made donations to this cause and has carried out campaigns aimed at providing farmers with the tools to help them back into farming, something The Banker's judging panel found particularly commendable.

António Horta-Osório, departing CEO, Santander UK

António Horta-Osório, departing CEO, Santander UK

UK

Santander UK

Last year's global and western Europe winner continued to forge ahead in the UK to win this title. Santander UK's profits were up by more than 50% (41% on a pro-forma basis) against a peer-group decline in personal financial services of 67%. Enhanced profits were driven by a revenue growth of more than 20%, on a pro-forma basis, and cost-to-income ratio further improved to 42%, down from 70% in November 2004.

Furthermore, a total of £14.9bn ($24bn) in commercial deposit flows enabled the bank to improve its loan-to-deposit ratio to 126% in 2009 (from 135% in 2008), and down again to 124% in the first half of 2010. A total of £14.9bn in commercial deposit flows enabled the bank to improve its loan-to-deposit ratio to 126% in 2009 (135% in 2008), and down to 124% in the first half of 2010.

António Horta-Osório, the departing chief executive officer who led Santander UK's expansion for two years, says: "We are delighted to be given this prestigious award for the second year running. It is a source of great pride for everyone in the Santander group and demonstrates the impact the bank has made in the UK in just six years."

The bank has completed the integration and rebranding of its UK financial institutions - Abbey, Bradford & Bingley and Alliance & Leicester. It has migrated 25 million customers to Santander and now has 1300 branches.

Mr Horta-Osório adds: "Our strategy of rewarding existing customers with even better products, underpinned by responsible lending and controlled costs, has seen us deliver a significant uplift in revenues and profits. We have also continued our strong support for the UK economy with increased lending to homeowners and businesses."

Mr Horta-Osório's recently announced move to Lloyds Bank will leave his successor with a hard act to follow, but he has bequeathed a solid foundation as Santander prepares to sell a 20% stake in its UK division in an initial public offering next year.

Alexander Dubilet, CEO, PrivatBank

Alexander Dubilet, CEO, PrivatBank

Ukraine

PrivatBank

Foreign banks in Ukraine were heavily exposed to retail lending in foreign currencies when the Ukrainian hryvnia halved in value in 2009. And second-tier locally owned banks found themselves frozen out of the global capital markets. PrivatBank has kept a vital balance - being locally owned but large enough to maintain sources of funding.

"In addition to the economic uncertainty that naturally follows a crisis, our country also had political uncertainty generated by changes of government and the president. But challenges are a rich source of opportunities. Having reacted to the losses from mortgage lending, foreign banks reduced their business development and that gave us the opportunity to strengthen our position and establish ourselves as a leader in the market," says PrivatBank chief executive officer Alexander Dubilet.

The bank increased its market share in retail deposit funding from 17% at the end of 2009 to 19% nine months later, and expanded its corporate lending market share from 11% to 14% over the same period. And Privat changed its strategic philosophy to boost fee-based income, urging staff to create a new model as a payment bank rather than purely a credit bank.

A focus on transactions and processing has inspired technological innovation, including a system that allows merchants to give change to customers electronically, reducing costly coin storage. Mr Dubilet believes that technological innovation for corporate clients is the logical next step.

"Usually, when someone talks about banking technology, they mean services for individuals, such as remote account access and contactless and mobile payments. The banks have not really developed mass-payment products for corporate customers, who still use the technologies of the last century. PrivatBank must move from the position of financial intermediary to the role of intermediary within financial transactions," he says.

Andre Sayegh, chief executive, First Gulf Bank

Andre Sayegh, chief executive, First Gulf Bank

United Arab Emirates

First Gulf Bank

The second largest bank in the United Arab Emirates (UAE) by Tier 1 capital, First Gulf Bank (FGB) has witnessed strong growth in core areas over the past five years and 2009 was no exception. The Abu Dhabi-based bank achieved a compound annual growth rate of 33% in net profits, 48% in assets and 61% in loans over the five years, with its market share, based on central bank statistics, at 8.9% for loans and 8.8% for customer deposits at the end of 2009, compared with 2.3% and 3.4%, respectively, at the end of 2004.

Last year was another strong year for FGB, unlike many of the UAE's larger banks, with its net profits up 10.1% to $901m, providing a relatively high 16.8% return on equity. The bank did this while increasing its Tier 1 capital by 38.1% to $6.06bn and boosting its total assets by 16.7% to $34.2bn. The bank's return on average assets at 2.8% was again the highest among its peers and, despite the difficult conditions in eastern Europe, FGB's non-performing-loan ratio stayed relatively low at 1.6%. Its capital adequacy ratio stayed at a healthy 22.6%.

The bank continues to expand its geographic footprint and, alongside its already-established joint-venture bank in Libya, it opened representative offices in Qatar and India this year and is converting its Singapore representative office into a wholesale banking branch.

In the first half of 2010, FGB continued its successful growth and saw net profits rise 12% to $465m, assets increase by 5% on 2009 to $35.8bn and Tier 1 capital up 6% on 2009 to $6.43bn. FGB's chief executive, Andre Sayegh, says: "All this success was due to the bank's continued focus on efficient management of its balance sheet and income statement, which is reflected in the growth and profits year after year. By dynamic leadership and committed management, FGB has achieved most of its long-term financial targets as well as investing in its human capital and growth development."

Jorge Jourdan, country head, Santander Uruguay

Jorge Jourdan, country head, Santander Uruguay

Uruguay

Santander Uruguay

Following the acquisition of ABN Amro Uruguay in 2008, Santander has strengthened its presence in the country and wasted no time in developing the business there. Although not the largest bank in Uruguay, Santander achieved good results for its shareholders in 2009, delivering a $59m net profit, 64% higher than the previous year, and a 19% return on equity. Its cost-to-income ratio was lowered to 57.2%, lower than many other institutions in Uruguay, and non-performing loans were well below 1%.

The Uruguayan market is small and about one-third of clients' deposits are used to fund commercial loans. Such a funding structure means that it is imperative for all successful franchises to be extremely close to their customers but big enough to have critical mass and economies of scale; banks also need good assets and liability management. Thanks to its larger size as a result of the ABN Amro acquisition, Santander has achieved good efficiency ratios.

The bank has undertaken a major technological upgrade of its systems, migrating to the group's regional platform to take advantage of state-of-the-art applications. Uruguay is not a particularly profitable market for banks, with limited margins, restricted demand for savings accounts and a long way to go to meet consumer credit demand. Santander has focused on these issues and delivered products that successfully met clients' requirements. Some examples are the launch of a credit card for its most affluent clients, a corporate credit card for small and medium-sized businesses and a ground-breaking 15-year mortgage loan in the local currency.

Jorge Jourdan, country head of Santander Uruguay, says: "The main goal we set ourselves after the merger of both institutions was that one plus one should be more than two: that the turnover of the new entity should not decrease. Likewise, we had to be a profitable bank. Both challenges were more than accomplished."

James E Rohr, chairman and CEO, PNC Financial Services Group

James E Rohr, chairman and CEO, PNC Financial Services Group

US

PNC Financial Services Group

PNC is a survivor of the credit crisis, with no exposure to subprime loans, making it able to devote resources to assisting customers recover from the impact of the financial crisis.

Its acquisition of the troubled National City Bank at the end of 2008 immediately doubled PNC's asset size, more than doubled its deposits and workforce, added 6 million new customers and took PNC back into the mortgage and credit-card businesses.

PNC's 2010 first-half net income was double its net income in the first half of 2009, demonstrating its ability to drive growth by applying a proven model to acquisitions.

James E Rohr, chairman and chief executive officer of PNC, says that the lack of clarity regarding regulatory capital requirements and an economic environment marked by low interest rates and slow growth continue to be the main challenges. However, he adds: "PNC met these challenges with a business model that had positioned us well for the environment and which continues to perform well for our stakeholders."

PNC sees its greatest achievement of the year as the successful integration of National City Bank, which was completed six months ahead of schedule. The group initially announced that it would look for synergies that could deliver as much as $1.2bn in annualised cost savings for the combined company by the end of 2010. By June 30, 2010, it had achieved $1.6bn in annualised expense reductions and had set a new goal of $1.8bn.

Mr Rohr attributes the bank's successful strategy to effectively managing expenses and continuing to invest in the people, technology and innovative products that serve its customers.

Djamshed Saifiddinov, chairman of management board, Microcredit-bank

Djamshed Saifiddinov, chairman of management board, Microcredit-bank

Uzebekistan

Microcreditbank

Microfinance is crucial to extending financial inclusion and facilitating small entrepreneurs in the early-stage transition economies, and Microcreditbank was established by various agencies of the Uzbek government in 2006 with this fact in mind. The government's faith in the bank's abilities was well demonstrated when it doubled the bank's capital in 2008, and a further 25% capital increase occurred in October 2010.

"Over a short period, the bank has been recognised as a reliable microfinance institution, not only domestically but also internationally. The bank has attracted the credit-line facilities and grants provided by leading global financial institutions, including the World Bank and UN, to support small businesses," says Djamshed Saifiddinov, chairman of Microcreditbank's management board.

The development credit and government capital has enabled the bank to lend on very preferential terms, with interest rates of between 3% and 7%, well below the standard for the microfinance industry globally. The bank has also been authorised to create a nationwide network of branches and minibanks, to reach even the most remote and underbanked areas.

All of this enabled a 35% rise in assets for Microcreditbank in 2009, with particular attention on sectors such as cattle farming, poultry farming, fisheries, food processing and traditional crafts. At the same time, the bank also seeks to play a wider role in the development of the country, using micro-leasing techniques to enable the technological modernisation of Uzbek businesses.

"In order to identify worthy entrepreneurs and establish partnerships with them, seminars and workshops have been organised and the bank's agents have conducted explanatory works in the field. In order to enhance entrepreneurs' access to microfinance resources, collateral-free microloans extended under group guarantee were introduced," says Mr Saifiddinov.

Pedro Rodríguez Serrano, CEO, BBVA Banco Provincial

Pedro Rodríguez Serrano, CEO, BBVA Banco Provincial

Venezuela

BBVA Banco Provincial

BBVA Banco Provincial's net profit in 2009 was 28% higher than in 2008 and 73% up on 2007, demonstrating the bank's sustainability and capacity to generate positive and recurrent earnings, despite more than two years of an international economic and financial crisis. The bank's profitability ratio was also outstanding in 2009, at 42.11%.

This has led to an increase in the bank's equity, resulting in very adequate solvency levels. The bank reported a shareholder equity/total assets ratio of 12.3% and a Bank of International Settlement capital adequacy ratio of 21.51%, both well above the minimum requirements (8% and 12%, respectively).

Pedro Rodríguez Serrano, chief executive officer of BBVA Banco Provincial, says: "The main challenge faced by BBVA Banco Provincial was keeping, for the third year in a row, our leadership position in the Venezuelan banking sector with regards to profitability, as well as increasing the volume of business, despite the economic recession, while assuring the quality of our assets."

The bank has made significant technology investment, developing 'express zones' at branches, which have become an important element in improving customer service, while optimising transaction costs.

Mr Serrano adds: "BBVA Banco Provincial is proud and grateful to be awarded Best Bank in Venezuela. This is the result of excellent performance that allowed us to achieve: the best trend in credit quality among the largest banks; the lowest cost-to-income ratio of the financial system, despite inflationary pressures; the largest net income in the banking sector; the most outstanding profitability ratios in terms of return on equity and return on assets; and the best solvency levels among our peer group."

For the future, BBVA Banco Provincial will continue modernising its branch network, developing self-service channels and automating key processes to improve service quality and reduce customer service times.

Nguyen Van Le, CEO, Saigon-Hanoi JSWC Bank

Nguyen Van Le, CEO, Saigon-Hanoi JSWC Bank

Vietnam

Saigon-Hanoi JSWC Bank

Saigon-Hanoi JSWC Bank (SHB) has achieved shareholder returns above the level of its peers in the Vietnamese market.

Last year, its return on equity was nearly doubled to 13.1%, the dividend ratio grew from 8% to 12.5%, while earnings per share were increased from VND973.85 ($0.05) to VND1592 in 2009. Net profits rose by 53.3% in the year, while assets were up 63.9% and return on equity was increased to a healthy 18% in 2010 so far. At the same time, the bank drove its non-performing loans down to 2% from 2.7% in the previous year.

The bank expanded its branch network by 50% to 95 offices, covering 16 cities and provincial sites. Based on its new IT platforms, SHB has been able to provide comprehensive e-banking services to individual customers, including online account statements, transfers, payments, electricity bills and share dealing. The bank has also focused on product research and development, to launch new products, attract customer deposits and savings and boost lending.

Last year, SHB issued VND1500bn worth of one-year convertible bonds and this year it will increase its capital from VND2000bn to VND3500bn with an additional share issue. By next year, SHB will have joined the ranks of Vietnam's 10 best-capitalised banks.

Yemen

Yemen Commercial Bank

The first private bank established after the unification of Yemen, Yemen Commercial Bank (YCB) successfully weathered the global financial crisis and showed continued growth in all its main indicators in 2009. After a sharp decline in profits in 2008, YCB bounced back in 2009, showing a 13.8% increase in pre-tax net profits to YR1.03bn ($4.8m).

The San'a-based bank also showed a strong 9% growth in assets to reach YR80bn, while its Tier 1 capital grew by 8.9% to reach YR7.8bn. Loans and advances also improved steadily, increasing by 10% to YR15.5bn. The bank achieved an 8.9% return on equity in 2009, following a 9.3% return in 2008. The non-performing loan ratio, however, rose to a worrying 14.8% in 2009 from 12.5% in 2008.

In 2009, YCB received a new licence from the Central Bank of Yemen to open an Islamic window/branch to perform sharia-compliant transactions.

The bank is introducing new services and opening four new branches to reach a total of 23, while extending its number of ATMs to 70. In 2009, YCB increased customer deposits by 8.2% to YR69.6bn. The bank has potential for expansion, with a capital adequacy ratio of 18.74%, more than double the current Basel II and Central Bank of Yemen requirements.

The main successes for YCB, according to chief executive Mahmoud Hobbob, have been "the continuity of granting loans under due consideration and scrutiny, the growth of deposits, loans, assets and profits, and achieving a capital adequacy ratio of 18.74%".

Zambia

Standard Chartered Bank Zambia

Standard Chartered Bank Zambia scooped this year's award for having the country's best all-round performance. It posted strong financials, with net profits increasing by a staggering 170% from the previous year's figures to $14.34m in 2009. Tier 1 capital grew by 31% and return on equity almost doubled from 2008 figures.

Standard Chartered Zambia is the country's leader in retail banking as well as the bank of choice for the mining sector.

Last year saw Standard Chartered Zambia launch a number of market firsts, including a joint mandate for Zambian Breweries of K300bn ($63.2m). Accounts aimed at younger investors were launched and the bank's mobile phone banking system was upgraded to a more user-friendly format.

The bank raised $13.2m from customers in a 10-month deposit mobilisation promotion and extended its banking hours throughout the working week. The judging panel was impressed by both the bank's results and its commitment to its customer base. In a difficult financial year, the bank opened two more branches, bringing the total to 24.

Standard Chartered Zambia uses its skills and experience to help address issues facing the country's population. The bank is involved in social programmes such as Urban Comprehensive Eye-Care and youth projects, noted by the judges as forging stronger relationships between the bank and its customers.

Joshua Tapambgwa, managing director, Stanbic Bank Zimbabwe

Joshua Tapambgwa, managing director, Stanbic Bank Zimbabwe

Zimbabwe

Stanbic Bank Zimbabwe

Stanbic Bank Zimbabwe operates in what can easily be described as one of the toughest environments in Africa. Despite changes to currency laws and new regulations imposed in early 2009, Stanbic Zimbabwe managed to report decent earnings. Its Tier 1 capital grew, albeit only by 1.7%, and its assets rose by an impressive 108%.

Zimbabwe adopted a multi-currency trading system in Feburary 2009, which led to high operating expenses and tight interest margins, coupled with a lack of suitable products and liquidity constraints. Banks had to adapt their operating models and products to attract foreign-currency cash into the banking system.

Stanbic launched extensive sales campaigns to increase account sales and mobilise much-needed foreign-currency deposits. As a result of this nationwide project, 50,000 accounts were opened, a notable achievement in a country where confidence in the banking sector was at an all-time low.

The bank came up with cost-containment strategies and streamlined operations.

Due to the hyperinflation experienced in Zimbabwe, international trade was very limited. However, Stanbic revived trade facilities such as letters of credit, which enabled customers to trade with international service providers without having to pay cash up front. It also supports the mining industry through various sponsoring campaigns, which has given the bank added recognition.

Stanbic Zimbabwe survived a year characterised by high operating expenses, which saw most banks in the country downsize their operations. However, thanks to the support of the Standard group, Stanbic managed to keep its branches open (indeed, it continued its branch expansion programme by adding another two during 2009) and increase its customer base. While liquidity constraints forced many companies to go under, Stanbic weathered the storm effectively and now boasts solid figures and a large market share.

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