Profit growth plunges in Western markets

This year's Top 1000 ranking, based mostly on results for the 2008 fiscal year, reflects the impact of the global financial crisis, with a huge 85.3% decrease in global profits, down to $115bn. On a regional basis, the highest drop has been registered in the US, where profits accounted for 14% of the aggregate figure last year and represent -79% of the total this year. On the other hand, Middle Eastern (20% of total), Latin American (15%) and Japanese (14%) banks have performed well and have significantly increased their contribution to the global result.

The aggregate figure for return on capital has also sharply decreased, from last year's 20% to 2.69% this year. The aggregate Tier 1 capital and the total assets have grown but at a lower rate of 9.7% and 6.8%, respectively.

The importance of Asian banks has increased in all of the major categories, rising from 15% to 17% in aggregate Tier 1 and from 12% to 14% in total assets. As far as profits are concerned, the shift is even more dramatic with an outstanding jump from 19% to 127% this year. The total profit figure is reduced by losses leading to percentages greater than the whole.

The US banks are not the only ones to have lost ground in the ranking, the EU27 has also dropped in all categories: in particular, the pre-tax profit percentage change to the total has dropped remarkably from 41% last year to -14% this year.

Pre-tax profits % - 2008 (2007)

Tier 1 capital % - 2008 (2007)

Assets % - 2008 (2007)