Wednesday, 29 September 2021

The Strongest Banks Rankings

2020
2019 2018

In this year’s The Asian Banker Strongest Banks By Balance Sheet evaluation, banks in Saudi Arabia and Qatar achieved the highest weighted average strength score, at 3.83 and 3.64 out of five, respectively. This year, financial information in the first half of financial year 2020 (1H FY2020) was collated and incorporated into the assessment of how commercial banks and financial holding companies (banks) performed during the COVID-19 pandemic.

The average strength score recorded by banks in the Middle East fell from 3.62 in the previous year’s evaluation to 3.48 in 2020, a reflection of weaker overall financial performance. Apart from the impact of the pandemic, low oil prices also posed serious challenges to the banking system. Banks in the region registered an average return on assets (ROA) of 0.92% in 1H FY2020, much lower than 1.69% in 1H FY2019. Asset quality deteriorated and average capital adequacy ratio (CAR) also declined during the year.

Qatari banks enjoyed the highest average ROA of 1.4% and the lowest average cost to income ratio of 25.1%, while banks in Lebanon and Bahrain recorded the lowest score in profitability. Overall, profitability was weaker in this year’s evaluation, and banks in UAE saw average ROA fall the most, from 1.9% to 0.9%. The average ROA of banks in Bahrain also dropped considerably from 1.3% to 0.4%, and average cost to income ratio was up from 50.5% in 1H FY2019 to 62.2% in 1H FY2020, the highest increase in the region.

Saudi Arabian banks maintained the strongest asset quality, followed by banks in Kuwait and Qatar. However, average gross non-performing loan (NPL) ratio deteriorated overall. Banks in Oman, Qatar and UAE witnessed both a rise in gross NPL ratio and a drop in loan loss reserves to gross NPL ratio. In addition, Saudi Arabian banks enjoyed the highest level of capitalisation, with CAR averaging 18.9%. Middle Eastern banks have remained well capitalised, although average CAR was down marginally from 18.4% to 17.8%.

The Lebanese banking sector suffered huge losses in the year due to a severe and deepening economic and financial crisis since 2019. Lebanese banks are required to increase capitalisation by 20% by the end of February 2021 and face possible government takeover should they fail to meet threshold.

For a full explanation of the evaluation criteria please click here.

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Strength Rank 2020 MEA 200 Rank 2020 Bank Country Assets YoY Growth in Loans YoY Growth in Deposits Loan to Deposit Ratio Capital Adequacy Ratio YoY Growth in Operating Profit Return on Asset Cost to Income Ratio Non-interest Income/Total Operating Income Loan Loss Reserves / Gross NPLs Gross Non-Performing Loan Ratio Liquid Assets / Total Deposits and Borrowings Aggregate Strength Score 2020
Score (17.5%) Score (2.5%) Score (2.5%) Score (7.5%) Score (12.5%) Score (5.0%) Score (7.5%) Score (7.5%) Score (7.5%) Score (12.5%) Score (12.5%) Score (5.0%)
15National Commercial Bank Saudi Arabia5.04.54.52.5 5.0 0.5 5.0 5.0 2.5 5.0 3.5 4.5 4.16
214Samba Financial Group #Saudi Arabia3.5 5.03.53.0 5.0 1.0 5.0 5.0 4.0 5.0 4.0 5.0 4.15
37Al Rajhi BankSaudi Arabia4.54.53.52.5 5.0 0.5 5.0 5.0 2.0 5.0 4.0 4.5 4.08
413Riyad BankSaudi Arabia4.54.54.01.5 4.5 0.5 5.0 5.0 3.0 5.0 4.0 4.5 4.03
53Emirates NBD Bank UAE5.05.05.01.0 5.0 3.0 3.5 5.0 3.0 5.0 2.0 4.5 3.94
617Kuwait Finance HouseKuwait4.53.54.04.0 4.5 1.0 1.5 4.5 3.0 5.0 3.5 5.0 3.88
71Qatar National BankQatar5.04.03.51.0 5.0 0.5 4.0 5.0 2.0 5.0 3.5 3.5*3.85
82First Abu Dhabi Bank UAE5.03.03.53.5 4.5 0.0 3.5 5.0 3.5 4.0 2.5 5.0 3.83
825Qatar Islamic Bank Qatar4.03.02.00.0 5.0 2.0 5.0 5.0 4.0 5.0 4.0 2.0*3.83
1036Masraf Al Rayan Qatar3.53.03.00.0 5.0 1.0 5.0 5.0 5.0 4.5 4.5 2.0 3.79
1127Ahli United Bank Bahrain4.03.02.52.0 4.0 0.0 4.5 5.0 3.0 5.0 3.5 4.0 3.69
1220Banque Saudi Fransi Saudi Arabia4.53.51.51.0 4.5 0.5 3.5 5.0 3.0 5.0 3.0 3.5 3.61
1323Mashreqbank UAE4.03.55.03.0 4.5 0.0 2.0 4.0 5.0 4.5 2.0 5.0 3.59
1355Qatar International Islamic Bank Qatar2.04.03.00.5 4.5 2.5 5.0 5.0 4.0 5.0 3.5 4.5 3.59
1521Arab Bank Group Jordan4.52.03.03.5 4.5 0.0 1.5 4.0 4.0 5.0 2.0 4.5 3.55
1610National Bank of Kuwait Kuwait4.53.54.00.5 4.5 0.0 2.0 4.5 2.5 5.0*3.5 4.5 3.54
1729Alinma BankSaudi Arabia4.04.54.51.0 5.0 0.0 4.0 4.5 1.5 5.0 3.0 2.5 3.50
1812Dubai Islamic Bank UAE4.55.05.01.0 4.5 0.0 4.5 5.0 3.0 3.5 2.5 2.5 3.49
1822Arab National Bank Saudi Arabia4.01.52.52.0 5.0 0.0 4.0 4.5 2.0 5.0 3.0 2.5 3.49
2015Saudi British BankSaudi Arabia4.52.01.52.5 5.0 0.5 0.0 4.5 2.5 5.0 3.0 3.5 3.41
2145Bank AlBiladSaudi Arabia2.54.53.50.5 4.5 1.0 4.0 3.5 2.5 5.0 4.0 3.5 3.34
2244Bank AlJaziraSaudi Arabia2.54.54.02.5 5.0 2.0 2.0 2.5 3.0 5.0 4.0 1.5 3.33
2334Bank Muscat Oman3.52.03.00.5 5.0 0.0 3.5 4.0 3.0 5.0 2.5 3.0 3.28
2372Bank of Bahrain and Kuwait Bahrain1.51.51.04.0 5.0 0.0 4.5 3.5 4.0 5.0 2.0 5.0 3.28
2557Al Khalij Commercial BankQatar1.54.04.00.0 5.0 1.5 4.0 5.0 1.5 5.0 3.5 4.5 3.24
2641Al Baraka Banking Group Bahrain3.01.53.54.5 4.5*5.0 1.5 3.0 5.0 3.5*2.0*0.0 3.40
2791Jordan Islamic BankJordan1.04.03.02.5 5.0 1.5 4.0 3.5 2.5 5.0 3.0 4.0 3.19
2861Commercial Bank of Kuwait Kuwait1.51.01.51.0 4.5 0.0 0.5 5.0 4.0 5.0 5.0 5.0 3.18
2940Saudi Investment Bank Saudi Arabia3.02.51.51.5 5.0 0.0 2.0 4.0 2.0 5.0 2.5 5.0 3.15
2947Dukhan Bank Qatar2.50.00.00.0 4.5 5.0 4.0 5.0 4.5 4.0 2.5 1.5 3.15
29130Bank Nizwa Oman0.03.54.53.0 3.5 3.0 3.5 3.5 4.0*5.0 4.5 2.5 3.15
328Abu Dhabi Commercial BankUAE4.51.01.01.0 4.5 3.5 2.0 5.0 2.0 2.5 2.0 5.0 3.14
3237Doha BankQatar3.02.52.50.0 4.5 2.0 2.5 5.0 3.0 4.5 2.0 4.5 3.14
3426HSBC Bank Middle East UAE4.02.54.53.5 2.5*0.0 0.0 2.5 5.0 4.5 2.0 5.0 3.08
3549Byblos Bank Lebanon2.50.51.05.0 2.0*5.0 0.5 5.0 4.0 4.0*2.0*5.0 3.06
3628Commercial BankQatar4.02.02.50.0 4.5 0.0 4.0 5.0 1.0 3.5 2.5 3.0 3.03
3666Ahli Bank Qatar1.54.01.50.0 4.5 1.0 4.0 5.0 2.0 5.0 3.5 2.5 3.03
3842Commercial Bank of Dubai UAE3.04.54.51.0 4.0 0.0 3.5 5.0 3.5 3.0 1.5 4.5 3.01
3846Burgan Bank Kuwait2.53.02.50.5 4.5 0.0 1.5 4.0 3.5 5.0 2.5 4.5 3.01
3858National Bank of Ras Al-Khaimah UAE1.51.51.01.5 5.0 0.0 3.0 4.5 3.0 5.0 2.5 4.5 3.01
4167National Bank of Bahrain Bahrain1.55.05.04.0 5.0 0.0 4.5 3.5 2.5 2.5 2.0 3.5 2.96
4262Sharjah Islamic Bank UAE1.54.54.01.5 5.0 1.0 3.0 4.0 2.5 3.5 2.5 4.5 2.95
43117Capital Bank of JordanJordan0.55.04.52.5 4.5 2.5 3.5 4.0 4.0 3.5 2.0 3.5 2.93
4460Ahli United Bank KuwaitKuwait1.53.53.50.0 4.0 0.0 2.0 4.5 2.5 5.0*4.0*3.5 2.91
4489Arab Bank for Investment and Foreign Trade UAE1.04.03.51.0 5.0 0.0 2.5 5.0 2.5 5.0 2.0 4.5 2.91
4651Gulf BankKuwait2.03.53.00.0 4.5 0.0 1.0 4.0 2.5 5.0*3.5 3.5 2.88
4735BLOM Bank Lebanon3.50.50.55.0 3.0 2.5 0.5 5.0 0.0 5.0 0.0 5.0 2.80
4833Abu Dhabi Islamic Bank UAE3.52.52.02.5 5.0 0.0 2.5 3.5 2.5 2.0 1.5 3.5 2.79
48134Safwa Islamic BankJordan0.05.05.03.5 2.5 3.5 1.5 3.0 2.5 5.0 3.5 4.0 2.79
5056Al Ahli Bank of Kuwait Kuwait2.02.53.01.0 5.0 0.0 0.0 3.5 3.0 5.0*2.0 4.5*2.78
5170Housing Bank for Trade and FinanceJordan1.51.51.03.0 4.5 0.5 1.5 4.0 2.0 5.0 2.0 3.5 2.75
5239Gulf International Bank Bahrain3.01.51.05.0 4.5 0.0 0.0 0.0 2.0 4.0 2.0 5.0 2.68
5365National Bank of Fujairah UAE1.51.03.02.5 5.0 0.0 0.5 5.0 3.5 3.0 1.5 4.5 2.64
5387Bank al EtihadJordan1.04.54.03.0 4.0 0.0 1.5 2.5 1.5 5.0 2.5 3.5 2.64
55127Arab Jordan Investment BankJordan0.04.02.02.0 4.0 1.0 2.0 3.0 2.5 5.0 3.5 3.0 2.63
5677Kuwait International Bank Kuwait1.04.03.50.0 5.0 0.0 0.5 2.0 2.0 5.0*3.5*4.5*2.61
5796Al Salam Bank-Bahrain Bahrain1.05.04.52.5 5.0 2.0 1.5 3.5 1.5 2.5 2.0 4.0 2.58
58118Bank of Jordan Jordan0.51.02.03.0 5.0 0.0 1.0 3.0 2.0 5.0 2.0 4.5 2.56
5988Ahli Bank OmanOman1.03.52.50.0 4.5 0.5 2.5 4.0 2.0 4.0 3.0 2.5 2.55
60114National Bank of Umm Al-QaiwainUAE0.51.01.01.5 5.0 0.0 5.0 5.0 3.0 2.0 1.5 5.0 2.54
6130Bank Audi Lebanon4.00.50.55.0 3.0 0.0 0.5 2.5 1.0 4.0 0.0 5.0 2.53
6181Ithmaar Bank Bahrain1.01.04.01.5 3.5 5.0 0.5 1.5 4.0 4.5 1.5 4.5 2.53
6375Bank of SharjahUAE1.03.54.02.5 2.5 5.0 0.5 5.0 5.0 3.0*0.5 3.5 2.51
63131Khaleeji Commercial Bank Bahrain0.01.01.55.0 5.0 3.5 3.5 3.5 3.5 2.5*0.0*3.5 2.51
6538Arab Banking Corporation Bahrain3.01.52.01.5 4.5 0.0 0.0 0.0 0.0 5.0 2.5 5.0 2.48
66154Alubaf Arab International Bank Bahrain0.00.52.00.0 5.0 0.0 5.0 4.0 3.0 5.0 0.0 5.0 2.46
6793HSBC Bank Oman Oman1.03.01.53.0 5.0 0.0 0.0 2.0 3.0 3.0 2.0 5.0 2.39
6876Sohar International BankOman1.02.04.50.0 5.0 0.0 2.0 3.5 2.0 3.0 2.0 4.0 2.35
6973Bank Dhofar Oman1.53.01.50.0 4.5 0.0 2.0 2.0 2.0 4.0 2.5 2.5 2.33
69136Eskan BankBahrain0.02.50.50.0 5.0 0.5 5.0 5.0 0.5 3.0 1.5 5.0*2.33
69144InvestBankJordan0.02.52.01.0 4.5 0.0 2.5 3.0 3.5 4.0 2.0 3.0 2.33
7280Oman Arab Bank Oman1.05.05.00.5 4.0 0.0 2.0 3.0 2.0 3.5 2.5 1.5 2.31
73147Arab Banking Corporation (Jordan)Jordan0.02.02.01.0 5.0 0.0 0.5 2.0 2.0 5.0 2.0 4.5 2.24
74107Kuwait Finance House (Bahrain)Bahrain0.53.04.53.5 5.0 0.0 1.0 2.5 4.5 1.0*2.0*1.5 2.21
75106Cairo Amman BankJordan0.52.02.52.5 4.5 0.0 1.0 1.5 2.5 3.5 2.0 3.5 2.19
7674National Bank of Oman Oman1.02.03.00.0 4.0 0.0 2.0 3.0 2.5 3.5 2.0 2.5 2.18
77137Societe Generale de Banque - JordanieJordan0.01.51.03.5 4.5 0.0 1.0 2.5 1.5 3.5 2.0 3.0 2.10
78110Jordan Ahli BankJordan0.52.02.03.0 4.0 0.0 1.0 2.0 2.5 3.0 2.0 2.5 2.08
7992Ajman Bank UAE1.03.00.50.0 4.0 0.0 1.0 3.0 3.5 3.0*1.5*3.5 2.06
80162United Gulf Bank Bahrain0.04.05.05.0 4.5 0.0 0.0 0.0 0.0 5.0*0.0*5.0*2.04
8199Commercial Bank International UAE1.01.00.51.0 4.5 0.5 0.5 4.0 3.5 2.5 0.5 3.5 2.03
81112Jordan Kuwait Bank Jordan0.52.52.52.0 5.0 0.0 0.0 2.0 2.5 2.5 1.5 4.0 2.03
8371Warba Bank Kuwait1.55.05.00.0 4.0 0.0 0.0 3.5 2.0 0.0 3.0 4.0 2.00
84105United Arab Bank UAE0.50.51.02.0 4.0 0.0 0.0 2.0 3.0 4.0 0.5 4.5 1.94
8559Bank of Beirut Lebanon1.50.50.55.0 3.0*0.0 0.0 0.0 0.0 3.0*2.0*5.0 1.91
86171Qatar First Bank Qatar0.00.55.05.0 3.0*0.0 0.0 0.0 1.0 5.0 0.0 5.0 1.84
87126Invest Bank UAE0.51.02.52.5 3.0 0.0 0.0 0.5 5.0 3.5 0.0 4.0 1.79
88140Jordan Commercial BankJordan0.01.51.52.5 3.0 1.0 0.0 1.5 2.5 3.5 1.5 2.0 1.71
89172First Energy Bank Bahrain0.00.50.00.0 5.0 0.0 0.0 0.0 0.0 5.0*0.5*5.0*1.58
90200Citi Islamic Investment BankBahrain0.02.50.00.0 5.0 0.5 5.0 2.0 1.5 0.0 0.0 0.0 1.35

Notes: (1) 5 = Highest score, 0 = Lowest score. (2) * FY2019 data. (3) # Adjusted for scale.
Source: Asian Banker Research