A look at the different pace of losses in five crisis-hit eurozone countries.

ROC crisis countries

In the 2013 Top 1000 World Banks ranking, we highlighted the different pace of losses in five eurozone countries, with Ireland recognising losses earliest and Greece suffering the sharpest individual hit in one year (2011). We have updated the chart this year, and the trend has become quite stark for Greece, Spain and Slovenia.

Greece has recovered very steeply after digesting the damage from sovereign debt restructuring and recession in 2011. It is now among the top 10 countries for asset growth in this year’s ranking, although this is partly due to the two largest banks, Piraeus and Alpha, consolidating assets acquired from smaller players that were outside the Top 1000.

By contrast, Cypriot banks only addressed the fall-out from their exposure to Greece in 2012, with Cyprus Popular Bank put into liquidation in March 2013 and Bank of Cyprus rescued.

Similarly, Slovenia was slow to recognise the losses caused by banks’ exposure to troubled state-owned enterprises. Under pressure from EU authorities, that situation changed in 2013 with a country-specific stress test.

Slovenia has suffered a return on capital of -120%. Of the four Slovenian banks that were in the Top 1000 ranking for 2012, two have dropped out of the ranking altogether due to the decline in their capital. Losses accelerated massively in 2013, and the comparison with other eurozone states provides some indication of the time that may elapse before Slovenia returns to profit.

For the full results of The Banker’s Top 1000 World Banks ranking 2014, read full story, Top 1000 World Banks 2014: Back on track?

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