Chinese provincial banks rise up the rankings

In previous years, The Banker magazine has published a list of the top 25 highest movers ranked according to the number of places they have jumped up the table. This measure has historically illustrated an institution's progress relative to that of its peers.

This year, however, the top 25 highest movers have been ranked according to the percentage increase in their Tier 1 capital in order to reflect the extent to which each institution's robustness has improved on an absolute, rather than relative, basis.

Following its acquisition of troubled Scottish-based banking group HBOS in September 2008 and a subsequent government capital injection, Lloyds Banking Group sits at the top of the list with an increase in Tier 1 capital of 285.7%. Globally, this boost in capital has put Lloyds Banking Group in the number 12 spot, up from the 48th position last year.

China's Bank of Inner Mongolia takes the number two spot, boasting a Tier 1 capital increase of 220.18%. Since Bank of Inner Mongolia holds the second lowest amount of Tier 1 capital in the top 25 highest movers (after China's Liaoyang City Commercial Bank), however, its position in the number two spot reflects the low base from which it began: last year the bank did not feature in The Banker's Top 1000 Banks ranking at all.

Reflecting a familiar theme throughout the Top 1000 ranking, China's banks dominate the rest of the highest movers, providing 14 of the top 25. The Chinese banks in the top 25 highest movers grew their Tier 1 capital by an average of 146%.

Although it is not shown on the table published here, it is interesting to note that the majority of China's fastest movers hail not from the big cities such as Shanghai or Beijing, but from the country's outer provinces, with the majority headquartered in the increasingly wealthy eastern provinces of Liaoning, Shandong, Zhejiang and China's regional economic powerhouse, Guangdong. As such, this year's top 25 highest movers list confirms the view that it is China's provincial banks, with access to a vast and ever-expanding deposit base, that are the ones to watch.

This year's surprise highest mover is arguably Portugal's Banif-Sgps in the number three spot, with a Tier 1 capital increase of 214.69% that has pushed it 373 places up the global ranking.

The US also provides two banks in this year's top 25 highest movers in the form of Privatebancorp and First Financial Bancorp, which grew their Tier 1 capital base by 98.9% and 83.58%, respectively.

Despite the country's recent woes, Greece's banks also put in a good showing, with Hellenic Post Bank and Attica Bank SA growing their Tier 1 capital base by 104.9% and 81.48%, respectively.

Top 25 Highest movers ($m)