HIGHLIGHTS:
The aggregate return on Tier 1 capital of all the banks in the 2005 Top 1000 listing reached a record return of 19.86%, significantly higher than the previous year’s 17.56%.
Banks across the globe have not only achieved record levels of profits, yet again, but in fiscal 2004 they reached their highest levels ever of profitability by return on capital. In The Banker’s Top 1000 world banks listing for 2005, the overall level of profitability (pre-tax profits to Tier 1 capital) rose to a staggering 19.86%, well up on last year’s 17.56% and the previous record of 17.91% in the 2001 listing. The almost unthinkable return on capital of 20% – almost double that of the 1999 listing – reflects a variety of factors, including the relatively benign growth environment, improvements in weak banking sectors such as Germany and Japan, the expansion of retail banking worldwide and advances in technology.
