In order to find success in the Bank of the Year awards, banks need to demonstrate not only resilience in their balance sheet and finances, but also trail-blazing achievements in areas such as overall strategy, success in multi-channel banking and financial inclusion. This year, we made awards in 141 countries. The global and regional winners are profiled here.

When the going gets tough, the tough get going – and those that perform especially well become winners in The Banker’s Bank of the Year awards. 

In order to triumph, banks need to demonstrate not only resilience in their balance sheet and finances, but also trail-blazing achievements in areas such as overall strategy, success in multi-channel banking and financial inclusion, as well as initiatives in new technology and customer satisfaction. 

The competition is fierce and our judging panel spent many hours poring over the finer details of the hundreds of entries we received. After much debate we were able to make awards in 141 countries, together with five regional winners, an award for financial inclusion, and of course, our top award for Global Bank of the Year. 

Whatever the challenges of the external environment – whether that be bad politics, recession, new competition from fintechs or another factor – leading banks have a knack for finding ways to surmount these difficulties. In our awards decisions we acknowledge these efforts and, in the many write-ups in the pages that follow, we outline why we came to our conclusions. Congratulations to all our very worthy winners. 

Global and Americas, Santander Group

Santander Group’s recent performance and growth prospects are nothing short of spectacular: boosting earnings (even in challenging markets), transforming its digital offering and taking over operations that put it on a skyrocketing growth path. 

Starting from its most recent achievement, Santander’s acquisition of ailing Spanish rival Banco Popular for a symbolic €1 was rated as its best deal ever, and one that consolidates further the group’s dominance of its home market by providing it with €10bn in fresh customer deposits. 

“It’s a very attractive transaction in terms of the entry point,” says Santander Group executive chairman Ana Patricia Botín, “but deals are only good once you have executed them. There’s a lot of work to be done now to make it a really excellent transaction.” Much has already been done, however, to support the acquired balance sheet, Santander swiftly raised more than €7bn and disposed of part of Popular’s toxic real estate assets.

Santander’s Latin American operations have also gone from strength to strength. In 2016, Brazil became the group’s biggest earner, contributing one-fifth of total income in the year, as well as one-quarter in the first half of 2017. Indeed, Santander’s profitability continues to expand in all its key Latin American markets. Local operations navigated a macro-economic environment that was dull at best and in deep recession at worst, as in the case of Brazil, where in 2016 the bank transformed the previous year’s pre-tax loss into a healthy profit. Greater attention to customer satisfaction and digital products are crucial, and digitalisation has been a clear focus for the whole group, with Santander’s products breaking new ground in Chile and Mexico, while innovative ideas by one market have been revisited and successfully introduced elsewhere.

In Chile, for example, the bank revolutionised branches in prime central locations by transforming them into coffee shops that offer co-working space and, in the background, banking services too. The UK’s flagship 1-2-3 account was introduced in Mexico under the name Santander Plus, offering cashback on deposits if customers use it to set up regular direct debits with utility providers, helping to improve the country’s relatively low level of bank coverage. In Brazil, the Superdigital online payment platform based on pre-paid credit cards, launched in 2016, is being used to develop similar products in other markets.

“In Latin America we are earning the loyalty of more customers and also improving profitability,” says group CEO José Antonio Alvarez. “While we are pleased with the progress we have already made, there is still significant potential for further growth. And technology makes it possible to tap into that potential in a way that has not previously been possible.”

Ms Botín adds: “Looking forward, our focus will remain on earning customer loyalty while continuing to invest in technology to deliver the best possible customer experience. We see significant potential for further profitable growth across our business and remain confident that we will meet all commercial and financial targets.”

Finally, beyond profitability and its digital push, Santander’s efforts to strengthen governance and promote good practice should be noted, as the group aims to provide a service that, as its corporate motto has it, is simple, personal and fair.

Western Europe, BNP Paribas

At a time of persistently low interest rates in Europe, ongoing regulatory debates and continuing transformation, BNP Paribas has shown that sticking to a business plan brings rewards. Solid financial results in 2016 meant net profits increased by 15%, non-performing loans dropped and return on equity rose to 9.3%.

But having delivered on its 2014 to 2016 development plan, BNP Paribas – the largest French bank by assets – is not complacent. Instead, in March 2017 management unveiled a new strategic business plan for 2017 to 2020. This includes financial targets such as a compound annual growth rate of revenue of at least 2.5% and of net income of more than 6.5%, and return on equity in 2020 of 10%, as well as additional business targets.

“We launched the 2020 plan to realise our vision to be the European bank of reference with a global reach, the partner of choice for our clients in the long term and an actor that contributes to sustainable and responsible growth,” says BNP Paribas chief executive Jean-Laurent Bonnafé.

To do this, BNP Paribas will invest Ä3bn to accelerate its digital transformation and improve operating efficiency between 2017 and 2019. This will be financed through planned cost savings of Ä3.4bn during that period. 

“We want to deliver a seamless, simple and secure digital experience for our clients’ day-to-day banking needs,” says Mr Bonnafé. One example of how the bank is already delivering this is its mobile payment and loyalty solution, Lyf Pay, which is compatible with any smartphone.

BNP Paribas is also continuing to play a major role in the transition towards a low-carbon economy. The bank plans to increase financing to renewable energy companies to Ä15bn in 2020 and has pledged to invest €100m by 2020 in innovative start-ups that help accelerate the energy transition. 

BNP Paribas operates in 28 countries and runs retail banking networks in France and Belgium – both of which won country awards for best bank – as well as Italy and Luxembourg. And while the group also offers specialist services, no business unit has more than 20% of the bank’s equity allocated to it. This underlines BNP Paribas’s diversification, which is a real strength of its operations now and for the future. 

Central and eastern Europe, Raiffeisen Bank International

As most central and eastern European (CEE) economies have emerged from recession in recent years and are expected to keep growing, the banking sectors in the region are becoming increasingly competitive. Lenders in the region are, like many others, challenged by low interest rates, as well as by increasing regulatory requirements and political risks.

In this environment, Raiffeisen Bank International (RBI) has proven it is leading regional position with growing profits in 2016 and an even better outlook for 2017. Return on equity (ROE) increased by just under two percentage points to 10.3% in 2016 and RBI lowered its non-performing loan (NPL) ratio to 9.2%, while ROE in the first half of 2017 reached 17.4%, with NPLs at 7.3%.

In March 2017, RBI simplified its group structure by merging the former parent company Raiffeisen Zentralbank into RBI, bringing an improvement to the overall capitalisation of the group.

“RBI went through a comprehensive transformation programme and optimised its group structure, increased transparency and profitability, reduced complexity, improved its asset quality and strengthened its capital ratios,” says Johann Strobl, chief executive of RBI. “This allows the bank to focus on its core task: the customer. RBI aims at being the best bank for its 17 million customers, providing first-class services and products.”

Subsidiaries across many of RBI’s 14 CEE markets performed strongly in 2016, and while only two won Bank of the Year awards in their countries, this did not represent a weak performance of RBI subsidiaries, but stronger competition across markets.

RBI’s performance across CEE is expected to improve with positive forecasts for 2017 growth – even Russian and Ukrainian economies are believed to be bouncing back from recession, according to the European Bank for Reconstruction and Development. 

“We are confident that the economic development in CEE continues to be good,” says Mr Strobl, who adds that many customers share this optimism. “We support them with financing and consulting services,” he says. 

Going forward, RBI aims to further streamline its branch footprint, reducing the number of branches by 18% until 2020, and shift further services to digital channels, as RBI sees digitalisation “as an opportunity to become more efficient and even more customer-friendly”, according to Mr Strobl.

Asia-Pacific, Woori Bank

South Korea’s Woori Bank has won the Bank of the Year award for Asia-Pacific thanks to its significant international expansion efforts, which involved both organic growth as well as mergers and acquisition (M&A) activity. 

“Through a series of M&A deals and the establishment of new subsidiaries and branches, the bank currently has the largest global presence among Korean banks, with its extensive 275 overseas networks in 25 countries. Woori Bank ultimately aims to become the unrivalled leader among Korean banks, with 500 overseas networks by 2020,” says Hyun Seok Shin, group head and chief financial officer of Woori Bank. The bank’s operating income generated in its global operations totalled $380m in 2016, a 19.2% increase on the previous year.  

Woori Bank has been pushed to expand abroad by a slowdown in the South Korean economy both in terms of demographics and in gross domestic product growth. To find new sources of revenue, international expansion (particularly focused on south-east Asia) is now a key part of the bank’s mid- to long-term growth strategy. 

“A prolonged low-interest-rate environment, tightened regulations and, most importantly, intensified competition arising from a rapid advance in technology are denting the growth prospects of Korean banks,” says Mr Shin.

Woori Bank became the first South Korean bank to acquire a Filipino lender when it bought a 51% stake in Wealth Development Bank in 2016. Besides a majority stake, Woori also acquired Wealth Development’s 17 branches across the Philippines, and is now seeking further M&A opportunities in Cambodia and India.

Woori Bank converted its two Vietnamese branches in Hanoi and Ho Chi Minh City to subsidiary level in 2016 to boost its retail business in the country, and also expanded in south-east Asia by organic means, through growing its own units.

Beyond Asia, Woori Bank opened a representative office in Poland in 2017 and plans growth in both Germany and Mexico. Mr Shin says: “Despite the many challenges we are facing, I am strongly convinced that with the continuous improvements in the bank’s fundamentals, combined with our strong initiatives for digital transformation and global expansion, Woori Bank will continue to display impressive performance going forward.”

Middle East, Arab Bank

The Middle East is facing numerous challenges, with regional conflicts on-going, geopolitical tensions flaring, and lower oil prices affecting economies across the region. The situation has created a challenging environment for many banks, requiring skill and strategic planning to keep ahead of the game.

“The sluggish economic activity along with the high regional uncertainty have affected growth opportunities across the region. As a result, and despite the relative recovery in oil prices in 2017, several markets faced tight liquidity and limited financing opportunities, with some markets also facing fluctuating exchange rates,” says Nemeh Sabbagh, CEO of Arab Bank, which won our 2017 Bank of the Year award for the Middle East.

Arab Bank achieved a net operating income of $1.1bn in 2016, with net profits before tax reaching $791bn, despite the challenging economic climate. The bank has continued this growth into 2017, posting a net income of $600.8m after provisions and tax for the first nine months of 2017, down slightly from $617.9m in the same period of 2016.   

Excluding the effects of foreign currency devaluations, the bank showed consistently solid growth in 2016, with loans and advances up 6% and customer deposits rising 3% to $33.6bn. Meanwhile, the group’s loan-to-deposit ratio stood at roughly 70%, while its capital adequacy ratio, calculated in accordance with the new Basel III regulations, improved further to reach 15.7%. 

Arab Bank, which has one of the largest global branch networks among Arab lenders, with more than 600 branches across five continents, sees the majority of its income generated outside of home market Jordan. The bank’s corporate and institutional banking division has continued to finance projects across the Middle East and north Africa, while the bank has led the creation of a Jd125m ($176.2m) Middle Market Equity Growth Fund, a first-of-its-kind investment fund aimed at Jordan’s medium-sized companies, which have struggled in the face of a scarcity of equity funding vehicles. 

“Our group position is strong, supported by a solid franchise and geographic diversification. In line with our conservative policies, we maintain strong capital ratios and high liquidity levels. Our loan book is high quality, and we continue to maintain a provisions coverage ratio for non-performing loans in excess of 100%,” says Mr Sabbagh.

Africa, United Bank for Africa 

Africa’s economic landscape has been unpredictable in recent times. The south of the continent has been battered by an El Nino-related drought, while the region’s big-hitting commodity exporters have had to face up to a lower price environment across the board. 

As a result, some of Africa’s best performing economies have taken a tumble, just as newer growth champions have emerged. From Côte d’Ivoire in the west, to the states of the East African Community, positive stories have continued, even if the region as a whole only expanded by about 1.3% in 2016, according to the World Bank.

In these conditions only the most diversified and innovative of regional banks can prosper. And this is precisely why the United Bank for Africa (UBA) has scooped the 2017 regional winner award. 

For one, the lender registered impressive top- and bottom-line growth over the review period. Earnings for the year reached N384bn ($1.07bn) signalling 22% growth from its 2015 performance. Profit before tax also grew, by 32%, to reach N91bn. Equally impressive is UBA’s capital adequacy ratio which, at the end of 2016, stood at 20%, while its non-
performing loan ratio was a healthy 3.9%. Operating across 19 markets in Africa, the bank serves more than 14 million customers. 

Beyond the numbers, the bank has won and acted on a number of headline deals. These includes the financing a new stadium in Douala, Cameroon, for the 2019 Africa Cup of Nations for $285m. In Senegal, more than $250m of trade finance was provided to the state oil company, while the lender acted as arranger and bank agent in the raising of $160m to finance road infrastructure. The bank’s digital tax collection solutions are also helping regional governments in Senegal and Burkina Faso.

Indeed, on the digital front UBA is making impressive strides. In terms of internet banking, the lender processed 7 million transactions valued at more than N600bn in 2016. Mobile banking processed transactions valued at N70bn over the same period. UBA has also launched eMailMoni, a service that lets customers transfer funds via e-mail, while Chat Banking allows clients to perform basic transactions through social media platforms. 

For these reasons, and others, UBA is the winner of our 2017 African Bank of the Year award. 

Financial Inclusion, Trust Merchant Bank

Trust Merchant Bank (TMB) emerged as the clear winner of the 2017 financial inclusion award based on its outstanding commitment to serving financially excluded communities through innovation and technology. 

Operating in the Democratic Republic of Congo, TMB has, in just 12 years, emerged as one of the country’s leading banks, with a footprint of 95 branches and more than 500 agency outlets. But its real impact on the market has come in the form of mobile banking service Pepele Mobile, the only one of its kind in the Democratic Republic of Congo. 

“Financial inclusion has remained firmly at the core of TMB’s business model ever since the bank commenced operations,” says TMB chief executive Oliver Meisenberg. “A 100% privately funded, for-profit company, TMB has grown operations in the Democratic Republic of Congo without the participation of development finance institutions or any other donors. Our track record is a clear demonstration that fighting financial exclusion can be a profitable endeavour.”

In a country of some 78 million people, of whom only about 5 million have access to formal banking services, TMB is delivering positive, tangible change. Pepele Mobile allows customers with only a basic handset to open an account using their mobile phone number. Users can also cash in and cash out and credit or debit their account, securely, when visiting a branch or agency outlet. In addition, bills can be paid through a customer’s phone, online or through the Pepele Mobile app. Crucially, Pepele Mobile functions on every Congolese phone network and operates in the Congolese franc and US dollar.

“By taking ownership of the fintech revolution in the Democratic Republic of Congo, through the introduction of our revolutionary mobile banking service, TMB has bypassed many of the significant infrastructural deficits that continue to hinder access to financial services across the country. Crucially, our initiatives are developed locally here, where the needs and risks of the market are best understood,” says Mr Meisenberg.

During 2016, TMB extended financial inclusion to an additional 400,000 people. The number of active Pepele Mobile users surged by 200% over the same period. 

PLEASE ENTER YOUR DETAILS TO WATCH THIS VIDEO

All fields are mandatory

The Banker is a service from the Financial Times. The Financial Times Ltd takes your privacy seriously.

Choose how you want us to contact you.

Invites and Offers from The Banker

Receive exclusive personalised event invitations, carefully curated offers and promotions from The Banker



For more information about how we use your data, please refer to our privacy and cookie policies.

Terms and conditions

Join our community

The Banker on Twitter