Weiss Ratings Releases List of World’s Safest Banks

European and Asian Banks take top spots

Weiss Ratings released the latest global bank ratings. Among the 174 global banks covered, 69 banks merited a rating of B+ (good) or better are viewed as strong enough to be Weiss recommended. 15 banks received a rating of A or better. BOC Hong Kong Holdings Ltd and Swedbank AB are the highest rated banks meriting a Weiss financial strength rating of A+.

European and Asian banks took multiple spots, three Swedish banks made the list with two rated A and one rated A+.  All 15 banks ratings were upgraded, primarily a result of improved profitability and asset quality. They have largely avoided the growth-at-all-costs strategy of the largest, riskiest banks. And based on our analysis, they maintain the wherewithal to survive — and even thrive in some of the worst of times.

That’s why every one of the banks in the list below merits a Weiss Financial Strength Rating of A or better. Weiss Ratings rated only two institutions A+, meaning the bank has the needed capital to withstand an adverse economic environment. 

Below are the Highest Rated Global Banks meriting a rating of A or better:

Bank Name

Country

Total Assets ($Bil)

Weiss Safety Rating

BOC Hong Kong Holdings Ltd

Hong Kong

$353.6

A+

Swedbank AB

Sweden

$277.2

A+

JPMorgan Chase & Co

United States

$2,615.2

A

HSBC Holdings PLC

United Kingdom

$2,603.0

A

Wells Fargo & Co

United States

$1,873.0

A

Lloyds Banking Group PLC

United Kingdom

$1,081.4

A

Toronto-Dominion Bank/The

Canada

$993.5

A

Nordea Bank Abp

Finland

$665.2

A

Svenska Handelsbanken AB

Sweden

$347.7

A

DNB ASA

Norway

$335.5

A

Skandinaviska Enskilda Banken AB

Sweden

$312.8

A

Emirates NBD PJSC

United Arab Emirates

$134.1

A

National Commercial Bank

Saudi Arabia

$122.4

A

Bank Rakyat Indonesia Persero Tbk PT

Indonesia

$79.4

A

Bank Mandiri Persero Tbk PT

Indonesia

$78.7

A


BOC Hong Kong Holdings Ltd, meriting a Weiss Financial Strength Rating of A+, while reporting $353.6 billion in assets, with capital, asset quality and profitability very strong across the board.      

BOC reported a Tier 1 Capital Ratio of 16.62%, (global banks average 13.35%). To put this number into perspective the minimum tier 1 capital ratio under Basel III regulations is 6%.

On September 30, 2018 BOC’s report showed an NPL Ratio or (Non-Performing Loans to total loans ratio) of .21%, this indicates that out of all the loans BOC has outstanding only .21% are over 30 days past due. BOC’s .21% is approximately 320 basis points lower than the global bank ratings average of 3.31%.

According to BOC Hong Kong Holding LTD’s filing for September 2018, their ROA is approximately 1.16%, This is significantly higher than the average of .835%.          

Similarly, Swedbank AB (also rated A+) reported $277.2 billion in assets as of the fiscal period ending September 30, 2018. Like BOC Hong Kong Holdings Ltd, Swedbank AB boasts very strong across-the-board scores in terms of its capital, profitability and liquidity.    

This shows up most clearly in another important measure of capital called the “risk-based capital ratio,” which for this bank is reported as 32.10% as of September 2018.      

Its NPL Ratio of .36% is well below the industry average 3.31% and its cash and equivalents as a percent of total liabilities is an estimated 17.54 significantly above the estimated global average of 14.38.

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Weiss Ratings