The Banker collects cost/income ratio data from banks as a measure of efficiency among banks across the globe.

South Africa’s African Bank, which achieved the highest return on capital among sub-Saharan banks in 2007, at 68.4%, also had the highest disclosed level of non-performing loans (NPLs), at 28.64%.

The global structure of the 2008 Top 1000 World Banks reflects the growing role of the Asian (excluding Japanese) banks, the declining influence of both the US and EU(27) and expansion in a number of emerging economies.

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.

Last year, China ended the annual tussle between the US and Germany to bring the highest number of entrants to the Top 1000, contributing seven new arrivals to the list.

The emerging markets once again provided the biggest movers in 2008’s Top 1000 bank rankings, with 79 banks moving 100 places or more.

Soundest: Highly capitalised banks are envied for their soundness, but too much capital may not necessarily be well used except in a specific business model.

The dominance of South African Banks in he sub-Saharan Africa region is under threat. For the second year in a row, Nigeria’s banks have soared up the global league tables and are knocking on the door of the more established ‘blue-blood’ brands of South Africa.

Higher oil prices – extending above $130 a barrel as The Banker went to press – have improved the prospects of most Middle East banks as well as profits for calendar 2007.

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.