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.
November 08, 2021 | Wendy Weng- Indonesia and the Philippines saw gross NPL ratio deteriorate the most in Asia Pacific
- Average ROA of banks in Asia Pacific weakened to 0.64%, while Indian banks saw ROA improve the most
- Most banks have maintained solid capital and liquidity positions despite the pandemic
Bank of China (Hong Kong) has remained top of the annual ranking of The Asian Banker 500 (AB500) Strongest Banks by Balance Sheet. The strongest bank in Australia, China, Hong Kong, Japan, Macau, Malaysia, Singapore, South Korea, Taiwan, Thailand and Vietnam ranked among the top 30 strongest banks in Asia Pacific. This is based on a detailed and transparent scorecard that evaluates commercial banks and financial holding companies (banks) on six areas of balance sheet financial performance; namely the ability to scale, balance sheet growth, risk profile, profitability, asset quality and liquidity
Bank of China (Hong Kong) excelled in the areas of scale, risk profile, asset quality and liquidity. The bank obtained a score of 4.21 out of five this year, the lowest in the past five years. This is mainly driven by the continued decline in its return on assets (ROA) to 0.86% compared with 1.15% in 2019, 1.16% in 2018, 1.24% in 2017 and 2.36% in 2016. The gross non-performing loan (NPL) of the bank was contained at 0.26% in 2020, and its loan loss reserves (LLRs) to gross NPLs ratio improved to 230% from 219% in 2019. It remained strongly capitalised and highly liquid, as reflected by the high capital adequacy ratio (CAR) of 22.1% and liquid assets to total deposits and borrowings ratio of 53%.
Overall, the weighted average strength scores of Hong Kong and Singapore banks remained the highest in the region in this year’s AB500 Strongest Banks evaluation, at 3.84 and 3.66 out of 5 respectively. Meanwhile, banks in Thailand, China, South Korea and Malaysia also achieved higher strength scores than the average of the 500 largest banks in Asia...
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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.
November 08, 2021 | Wendy Weng- Indonesia and the Philippines saw gross NPL ratio deteriorate the most in Asia Pacific
- Average ROA of banks in Asia Pacific weakened to 0.64%, while Indian banks saw ROA improve the most
- Most banks have maintained solid capital and liquidity positions despite the pandemic
Bank of China (Hong Kong) has remained top of the annual ranking of The Asian Banker 500 (AB500) Strongest Banks by Balance Sheet. The strongest bank in Australia, China, Hong Kong, Japan, Macau, Malaysia, Singapore, South Korea, Taiwan, Thailand and Vietnam ranked among the top 30 strongest banks in Asia Pacific. This is based on a detailed and transparent scorecard that evaluates commercial banks and financial holding companies (banks) on six areas of balance sheet financial performance; namely the ability to scale, balance sheet growth, risk profile, profitability, asset quality and liquidity
Bank of China (Hong Kong) excelled in the areas of scale, risk profile, asset quality and liquidity. The bank obtained a score of 4.21 out of five this year, the lowest in the past five years. This is mainly driven by the continued decline in its return on assets (ROA) to 0.86% compared with 1.15% in 2019, 1.16% in 2018, 1.24% in 2017 and 2.36% in 2016. The gross non-performing loan (NPL) of the bank was contained at 0.26% in 2020, and its loan loss reserves (LLRs) to gross NPLs ratio improved to 230% from 219% in 2019. It remained strongly capitalised and highly liquid, as reflected by the high capital adequacy ratio (CAR) of 22.1% and liquid assets to total deposits and borrowings ratio of 53%.
Overall, the weighted average strength scores of Hong Kong and Singapore banks remained the highest in the region in this year’s AB500 Strongest Banks evaluation, at 3.84 and 3.66 out of 5 respectively. Meanwhile, banks in Thailand, China, South Korea and Malaysia also achieved higher strength scores than the average of the 500 largest banks in Asia...
Categories:
Asian Banker 500Keywords:
