In last years's Top 1000 World Bank ranking, the share of world banks’ profits between the roaring Asian countries and western Europe was relatively close – a welcome relief after the disastrous performance of European and US lenders in the previous financial year. But in this year's rankings, things have gone a little differently.
The Asia-Pacific region distanced itself from the rest of the world with a 40.61% share of global pre-tax profits (up from 37.08% in last year's rankings), while western Europe went down to 24.6% (down from 31.19%). North America lenders’ profits were an improved 20.27% share of the total, up from 13.78% in last year's ranking.
Not surprisingly, the top five banks in the most profitable lenders ranking are from emerging markets, led by Bank Rakyat Indonesia with 75.85% profits-on-average capital ratio. This figure takes into account the pre-tax profits banks generate and the average capital employed during the financial year.
In second place is BRB Banco de Brasilia, which has a 59.81% profitability ratio and is also the bank that has improved its Tier 1 capital the most in Latin America.
The most profitable lender from a developed economy is found further down the list, in eighth place. American Express Company made $5.96bn in pre-tax profits and showed a profits on average capital ratio of 48.56%.
