The recovery in pre-tax profits to assets and pre-tax profits to Tier 1 capital ratios are a sign of a return to more healthy levels in the aftermath of the crisis.
The increase in the system Tier 1 capital to assets ratio is even more dramatic as banks everywhere have decided to replenish or boost capital levels.
Last year, profits to assets fell to 0.12% and profits to Tier 1 to 2.69%, but the former has recovered this year to 0.42% and the latter to 8.16%. These are welcome improvements but still fall short. Last year the Tier 1 capital to assets ratio improved from 4.32% to 4.43% and this year the gains are even more dramatic, moving the ratio to 5.14%.
In terms of where the banks in the Top 1000 come from, predictably, Europe is losing banks from the ranking - 311 in 2009 to 278 this year - whereas Asia's number has increased from 281 to 321. Interestingly, North American numbers have continued to rise from 174 last year to 184 this year. This could be due to The Banker's move to remove banks with old data from the ranking, with US banks among the most efficient in filing current accounts.
Where they come from 2009 (2008)
Tier 1 capital: assets ratio (%)
Banks' profit ratios (%)
Pre-tax profit: Tier 1 capital (%)
Total assets ($ trillion)
Total pre-tax profit ($bn)
Total Tier 1 capital ($bn)
