Latin America is still roaring ahead on the back of a commodity boom. By the end of 2007, the region had amassed about $400bn in foreign currency reserves, according to the International Monetary Fund. How these inflows came about is indicative of the economics of each country.
In what seems to have become a traditional dance, the top three banks in North America have switched places once again. Citigroup has, this year, reclaimed its crown, just pipping JPMorgan Chase to the top slot and pushing Bank of America (BAC), last year’s occupant of pole position, into third place.
Asia is riding high as the world’s saviour, taking up the slack from an ever-weakening US economy. Its main vulnerability is its dependence on increasingly expensive oil to continue developing, and the inflationary pressures affecting the price of food.
Mergers and acquisitions (M&A) are responsible for remodelling the Top 25 western European banks in this year’s listings. As ABN AMRO is consolidated onto the balance sheets of its three purchasers, it disappears from our rankings, while RBS, Santander and Fortis all move up the table.
To purchase your copy of this year's rankings please click hereBanks may be suffering as the credit crunch bites, but the past year shows the industry has the resilience to stop a setback turning into a disaster. By Stephen Timewell. Research by Terry Baker-Self, Valentina Lorenzon & Beata Ghavimi.
Unlike the past four successive years of record pre-tax profits and strong growth, The Banker’s 2008 Top 1000 World Banks rankings, based largely on fiscal 2007 results, reflected the US subprime crisis and global credit crunch and showed a 0.7% decline in profits to $780.8bn.
In this vibrant young industry, many new players are emerging. The combination of huge liquidity in the Gulf region from oil prices in excess of $80 a barrel and the attraction of new opportunities through Islamic finance has led to a large expansion of Islamic institutions both in the Gulf and elsewhere.