The Middle East and Africa lead in bank profitability, benefiting from considerable non-interest-bearing deposits and elevated oil prices in the Middle East, along with high interest rates and foreign exchange gains in Africa, according to the TAB Global 1000 Strongest Banks Ranking.

While asset growth of world’s 1000 largest banks remained stable, loan and deposit growth slowed

North America and Asia Pacific banks maintain overall balance sheet strength over those in other regions, with the Middle East showing some improvements. Profitability among all 1000 banks improved, driven by higher interest rates, while asset quality indicators stayed stable.

Bank boards globally lack enough technology experts to influence strategy decisions, though North American banks are better at integrating such experts into their boards

From 2019 to 2023, the share of consumer finance relative to total retail lending declined in Hong Kong and South Korea, but increased significantly in the Philippines.

South American banks led with the highest average loan-to-deposit ratio at 109%, followed by Europe at 96%, with around 50% of South American and 42% of European banks with ratios exceeding 100%

The world’s top 10 most profitable banks with assets over $100 billion include four from the Middle East, three from Asia, two from the Americas, and one from Europe

Most of Asia Pacific witnessed a slight slowdown in SME loan growth in 2023, but the regional average increased marginally, led by Australia, while concerns remain over SME loan quality, notably in Thailand

Alipay retains its top spot in this year’s ranking, while Apple Pay climbs higher with its expanded financial services ecosystem

JPMorgan Chase, China Construction Bank, and Emirates NBD claimed leading spots in this year’s ranking, with JPMorgan Chase standing out in retail financial performance and digital customer base

The top 10 digital banks saw revenue grow from $41 billion in 2022 to about $49 billion in 2023

Rising borrowing costs, reduced demand, and stringent credit barriers have dampened growth prospects, and these factors are unlikely to shift given the current economic climate