|
The
Strongest Banks Ranking |
The
Criteria We Use |
Our
Rationale |
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A strong domestic franchise
|
1. Size of
deposit base as a % of national total
2. Number
of branches as % of total |
We believe
that the extent to which a bank is domestically enfranchised is a measure of
the strength of the institution as a leading domestic player. Indicators of
these include a strong domestic deposit base, branch networks. Such
institutions often demonstrate a low operational cost base, access to cheap
funding and strong customer relationships.
|
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A strong
Balance Sheet
|
Please
refer to our "
" to see the well
developed criteria we use for this area of assessment.
|
Our
assessment of the balance sheet weighs the relative importance of the data on
productivity, yoy growth, risk management and stability against each other.
|
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Measurable Brand Premium
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The share price over book value
|
We believe
that the share price of well-regarded financial institutions enjoy a premium
over their peers in the marketplace. This premium is an indication of
investor support, which in turn is driven by strong performance and investor
commitment. |
|
Diversified
revenue stream
|
Number of
clear business lines detectable in the annual reports
|
A
financial institution with a well diversified income base in all of the core
areas of commercial banking (strictly excluding non-finance activities) is an
indication of stability and diversity to draw from in changing times.
|
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Strong
contribution of fees to overall income
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Fees as a
% of total income
|
Fee
generation is associated with value creation over and above any advantage
that the bank enjoys in the traditional net interest margin business. This is
also a proxy for evaluating the service orientation of the business.
|
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Consistency
of ROE over a three year period
|
Variations
between the lowest and highest ROEs achieved over the past three years
|
We target
ROEs as a measure of a range of factors that results in the consistency of
profitability, which includes the kinds of stable, long term businesses they
pursue, or the ability of their business mix to ensure no strong fluctuations
driven by external factors.
|
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Quality of
leadership
|
Our
assessment of the leadership provided by either the executive chairman or the
CEO, based on
|
We believe
that strong leadership is a factor that determines the competitive capability
of an institution. The quality of leadership is assessed every three years
under our Leadership Achievement Programme
|
|
Strong
Governance Structure
|
1. The
number of independent directors as a % of total on the board
2. The
number of directors whose professional background is relevant to the
financial services industry.
|
By a simple
matrix
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The Asian Banker Strongest Banks
