MBH Bank, Hungary’s new “megabank” formed by the merger between Budapest Bank and MKB Bank, tops the highest movers’ table in 2023 with an impressive 205.5% of Tier 1 capital added to its balance sheet. In 2020, the country’s prime minister Viktor Orbán declared a three-way merger (Budapest Bank, MKB Bank and Takarekbank – the latter’s inclusion was completed in April this year) to boost the competitiveness of the national banking sector.
But it is the US banks that numerically dominate the list again this year, with 10 out of the 25 highest movers, double its number in the previous ranking. The strong dollar played some part in this success story, but the main reason is the continued consolidation among regional and community banks.
For example, North Carolina-based First Citizens BancShares acquired CIT Group, Connecticut-headquartered Webster Financial Corp purchased Sterling Bancorp, Indiana-based Old National Bancorp bought First Midwest Bancorp and New York Community Bancorp acquired Flagstar Bancorp. This wave is unlikely to break in the near future, in light of recent issues with Silicon Valley Bank, Silvergate Bank, Signature Bank and First Republic Bank.
Digital-only lender Monzo Bank is only UK bank to appear in the highest movers’ list since Virgin Money in 2020. It is the second-highest mover, adding 136.42% to its Tier 1 following a $500m funding round in December 2021. It has entered the Top 1000 for the first time this year, in 885th place. However, it also places in the top 15 losses by bank table this year, with a pre-tax profit loss of $159m.
Another challenger bank, Brazil’s Nubank, takes fifth place in the highest movers’ table, with a Tier 1 capital increase of 96.3%. It also joins the Top 1000 for the first time, in 831st position, along with Banco Cooperativo Sicredi, which places 16th in the highest movers’ list and 909th in the main ranking. State-controlled Banco da Amazônia is the third Brazilian institution in the table, in 25th place.
Kuwait Finance House’s (KFH) presence in the highest movers’ list is due to one of the largest merger deals by value in the Middle East. In 2022, it completed its acquisition of Bahrain-based Ahli United Bank, in a deal valued at $11.2bn. KFH added 51.6% to its Tier 1 capital base, which moved it up 53 places in the main Top 1000 ranking.
Saudi Arabia’s second-largest lender, Al Rajhi Bank, also the world’s largest sharia-compliant bank, registered the highest non-acquisition related increase of Tier 1 capital of any lender with assets in excess of $100bn worldwide, helping it climb 25 places in the overall rankings, to 78th.
While China had three banks in the 2022 highest movers’ table, this year there is only one: Zhuhai Rural Commercial Bank. The regional bank added 62.6% in Tier 1, which helped it jump 162 places in the main ranking.
Turkiye Is Bankasi is the first Turkish lender to grace the highest movers’ table in more than five years. Its 46.9% boost in Tier 1 allowed it to move up 54 places in the Top 1000.
