It has been a challenging year for western European banks. Five years ago, banks from the region accounted for 58% of total Top 1000 assets and 46% of profits. This year they still account for 45% of assets but only a meagre 6.3% of profits. This is down from just under 25% of profits in the 2011 ranking, showing how the eurozone crisis has really bitten in the past 12 months.
HSBC leads the pack in Tier 1 capital terms being roughly 50% larger than its nearest rival, second placed BNP Paribas, and having the benefit, of course, of a diversified earnings base with major operations in Asia, Latin America and the Middle East. HSBC also benefits in these challenging times from its conservative funding strategy, with a loans-to-deposit ratio of 83%.
