Banks in most Asian markets booked lower provisions to cover potential loan losses as economies recover, which has contributed to the improved profitability in 1H 2021

Al Rajhi Bank and National Bank of Egypt have emerged as the strongest bank in the Middle East and Africa respectively. Across the region, the average ROA of banks fell to 0.9% in 2020 from 1.6% in the year earlier, while their capitalisation remained robust

The top ten remained largely unchanged in the ranking of the largest banks in Asia Pacific, while HSBC slipped two places to rank 13th due to the stronger growth of Chinese banks and the appreciation of the RMB against the US dollar.

Saudi Arabia-based Al Rajhi Bank retained its position as the largest and strongest Islamic bank in the world, with total assets amounting to $125 billion in 2020. The aggregate total assets of the 100 largest Islamic banks in the world grew by 12% in 2020, while the aggregate net profit of these banks contracted by 15%.

The financial performance of the Hong Kong and Singapore banking sectors remained relatively strong. The COVID-related relief measures eased the short-term pressure on banks’ asset quality and capital adequacy.