Best Bank in North America & Canada | ROYAL BANK OF CANADA

Royal Bank of Canada (RBC) has positioned itself for growth with a strategy to leverage its operations more broadly across its North American franchise. This involves building on the bank’s leading positions in Canada in personal and commercial banking, wealth management, and capital markets; and continuing to refine its US business to align with its Canadian operations.

The bank’s strategy centers around its “OneRBC” mindset to better harness the power of a unified bank to serve its North American clientele. RBC is broadening client relationships to more effectively increase engagement through extensive products and services. This organic approach follows integration of the HSBC Bank Canada acquisition, which presents significant cost-savings and revenue-generating opportunities.

RBC’s US operations account for 26% of revenue and represent a key component of the bank’s strategy, particularly in commercial banking through its City National Bank subsidiary. RBC also operates a leading investment bank with substantial US operations, which accounts for 50% of RBC’s capital markets revenue, and its successful wealth management division is highly ranked among the high-net-worth segment.

nnovation is critical for realizing the bank’s goals, and RBC continues to make significant technology investments in application development and data infrastructure to identify new service opportunities, improve the client experience, increase efficiency, and more effectively manage risk.

The bank is at the forefront of AI expertise and development globally through Aiden, its AI platform for advanced analytics, custom generative AI offerings, data-driven research and insights, and electronic trading using algorithmic solutions that have experienced 28% annual growth over the past five years. Additionally, AI continues to elevate the bank’s client-service capabilities with the availability of advisers across various product channels.

Unites States | J.P. Morgan

Meanwhile, south of the border, J.P. Morgan (JPM) earned the Best Bank in the United States award, as technology advancements continue to drive growth throughout the bank. Within its Consumer and Community Banking, Commercial and Investment Banking, and Wealth Management divisions, mandates for broadening and enhancing service offerings to tap new markets, and expand the client base require ongoing development.

This involves considerable technology investments, and JPM invested $17 billion last year in products, platforms, user experiences, tech modernization, and further development of AI capabilities. The bank’s progress is seen in the 20% increase in the speed to market for new products and features over the last two years.

Ensuring the security of the enormous volumes of customer data is a top priority, and JPM is increasingly migrating this information to the cloud for efficiency as well as maintaining a strong risk and control environment. Over 50% of applications now run in the cloud, 70% of data resides there, and 80% of production applications are cloud based or housed in data centers.

Recognizing significant opportunities in the payments segment, JPM is developing blockchain technology for greater applications through its Kinexys platform to facilitate easier crossborder funds transfers, tokenize assets, and seamlessly exchange and validate financial data. Additionally, JPM is expanding its relationship with biometric verification company PopID in the development of a “pay-by-face” biometric payment solution.

The organic growth of digital capabilities is increasingly being augmented through collaboration with the fintech sector, contributing to the ongoing growth of extensive physical branch networks. Many regional banks have recognized tremendous growth opportunities in the retail and commercial payments segment. They are devoting considerable resources to expand in this area, while those seeking to develop further in wealth management are focusing their efforts on high-growth and affluent municipalities. Importantly, all institutions demonstrate their strong corporate citizenship with extensive outreach and financial support in their communities.

Far West | US BANCORP

US Bancorp (USB) wins the award for the Far West region, reflecting the bank’s progress with development of new products and operational efficiencies to boost its comprehensive line of banking, wealth management, and payment services. USB is enhancing data management and core technology platforms to enhance the digital experience while simplifying the bank’s organizational structure to drive efficiencies through a centralized technology effort.

The bank’s California market, where USB serves 3 million clients through 600 branches, has significant opportunities. The 2022 Union Bank acquisition boosted USB’s deposit share from 10th to fourth in the state; and its consumer, commercial, and wealth management products have posted solid gains. New client growth is up 7% (excluding those from Union Bank). Strategic partnerships with such as financial services provider Edward Jones also drive growth. This partnership provides banking products through Edward Jones’ 19,000 financial advisers, who serve 8 million clients.

For commercial clients, new developments in cash management offerings include the acquisition of Salucro Healthcare Solutions, an online billing and payments provider. Consumer clients have new merchant capabilities with the launch of Paze, an online checkout offering that does not require manual card entry.

USB is leading powerful initiatives for its small and midsize business clients within its Far West footprint. The bank launched Business Access Hubs in partnership with California State University to support startups and existing businesses with resources to help them grow. For cardholders, the bank recently introduced a new travel-booking platform. Small Business Administration (SBA) lending has surged as the bank assists thousands of small businesses’ growth strategy with additional working capital, property acquisition, and navigation of new partnerships. During 2024, overall SBA-loan volume increased 25% in California and rose 74% across the bank’s US footprint to rank fifth nationally.

Great Lakes & Southeast | FIFTH THIRD BANK

Meanwhile, Fifth Third Bank is leveraging a well-established franchise to accelerate its development in high-growth segments, particularly in payments and wealth management. Fifth Third has earned the title of Best Bank in the Great Lakes and Southeast regions. Operating in 11 states, with comprehensive retail and commercial banking solutions, the bank has captured a 12% depositmarket share across the Great Lakes region, ranking second among its peers, and a 4% share in the Southeast.

Fifth Third has opened over 70 branches in fast growing areas of the Southeast over the past five years, and the bank is looking to build on this market share as part of its expansion strategy. It has prioritized nine key metropolitan areas across five states. One is Florida, where the bank has positioned itself for growth, particularly in retail banking. In commercial banking, Fifth Third is a leader in the payments segment and has posted consistent annual growth of 7% in payment-processing volume, reaching $17 trillion in 2024. The bank’s Newline application programming interface (API) offering enables companies to launch payment, card, and deposit products directly with Fifth Third.

The bank’s wealth management segment presents significant growth opportunities. Following the November 2022 launch of Fifth Third Wealth Advisors, assets under management surpassed $2 billion—less than six months after having reached the $1 billion milestone. Artificial intelligence is creating efficiencies and improving customer experience, as the frequency of client interactions with the bank’s chatbot has reduced demand on the bank’s call centers. Digital progress has continued, with a 75% adoption rate among checking-account holders. Funds transfers through Zelle rose 30% year over year.

New England & Mid-Atlantic | CITIZENS BANK

In New England and the states of the Mid-Atlantic region, Citizens Bank takes home the award for Best Bank, which it earned through expansion in these high-density growth markets. This strategy has produced a steady five-year growth of 15% in Citizens’ consumer bank client base, and it is focusing on affluent households to capture high-value customers. Its commercial bank is targeting growth sectors, including health care, to attract corporate and middle-market clients.

The New York City metro area is a particular focus for Citizens, given its push to expand its wealth management and private banking capabilities. This has involved a selective recruiting campaign to add proven advisory teams in key markets across the bank’s regional and national footprint to capture more business in the high net worth segment. To bolster this effort, Citizens is expanding its wealth management and private banking infrastructure and operations, recently establishing Citizens Trust Company of Delaware, a subsidiary to offer trust and fiduciary services.

At the same time, its Citizens Access digital bank’s mobile app has undergone several enhancements, including a new streamlined onboarding experience for account access, biometric setup, and the ability for customers to add credit, debit, and gift cards to their digital wallet. Clients can access financial-planning tools and resources with Citizens Savings Tracker and the bank’s AI-driven virtual digital assistant for personalized banking support.

Citizens offers a range of cash management services; and small businesses can benefit from Citizens Cash Flow Essentials, an online and mobile banking platform and payment suite that complements the bank’s existing features with Cash Flow Forecasting. Additional enhancements include a new open banking API allowing customers to access financial data through external apps such as budgeting software or accounting platforms. Citizens recognizes its responsibility to invest in the communities it serves. Local initiatives include a $10 million pledge for workforce development to expand access to educational and career opportunities in communities across the bank’s footprint, as well as financial-education grants and support for 137 local nonprofit organizations.

Plains, Rocky Mountain & Southwest | BMO HARRIS BANK

In the US heartland, BMO Harris Bank is accelerating its technological initiatives to introduce effective banking solutions for the US market across its Personal and Commercial banking, Wealth Management, and Capital Markets business lines. BMO wins as Best Bank in the Plains, Rocky Mountain, and Southwest regions. Progress with the bank’s Digital First agenda utilizing advanced data analytics and AI to enhance its service offerings has resulted in consistent improvements in BMO’s US franchise that spans 34 states. These include solid increases in digital adoption, with active retail users up 6%, active commercial users up 9%, and an overall 4% increase in digital sales during 2024.Through BMO Assist, AI capabilities support millions of client interactions; and to spur innovation, the bank joined IBM’s quantum computing network.

New developments for US retail credit card customers include the BMO PaySmart feature that provides greater flexibility through smaller installment payments. Commercial clients benefit from leading cash management, treasury, and payment capabilities with enhancements to the platform from the bank’s partnership with fintech Fispan on the recent launch of BMO Sync, an API that lets clients integrate banking capabilities into their enterprise resource planning and accounting systems to automate payable workflows and improve cash flow management and data reconciliation while streamlining client onboarding.

These developments contributed to growth in BMO’s US operations, which represent a significant and growing component of BMO Financial Group’s overall profitability. The US Personal and Commercial business accounts for 23% of 2024 net income; while the overall US business, including Capital Markets and Wealth Management, represents 43% of group net income, up from 37% year over year.

BMO undertakes many corporate social responsibility initiatives, with a 90% employee-participation rate in fundraising for thousands of organizations in North America. Through BMO EMpower, the bank has pledged more than 40 billion Canadian dollars (about $28.9 billion) to support communities across the US in advancing home ownership, growing small businesses, and funding community economic development loans, with over CA$16 billion earmarked explicitly for California.

Against this backdrop, FX services have been gaining ground on companies’ balance sheets over the past few years, currently driving an average 50% of corporate value allocation, according to recent research by the market structure and technology research team at Coalition Greenwich.

FX trading volumes have been on a consistent uptrend since the pandemic, hitting a daily record of over $7.5 trillion this year, according to J.P. Morgan. Now, Market Data Forecast projects a 7.14% yearly compounded growth rate into 2032 for the global FX market.

The evolving scenario has prompted banks to rethink the status of their FX divisions, positioning them not just as an ancillary part of the corporate banking operation but as a core component of the overall strategy. On the clients’ side, the trend has significantly increased the demand for tailor-made FX offerings that cater to a client’s unique geographical reach and risk-exposure needs.

“Banks are creating personalized solutions like customized currency hedges or swaps. These tailored strategies help businesses manage currency risks in ways that suit their specific needs,” explains Swapnil Shinde, CEO and co-founder of Zeni, a corporate bookkeeping platform powered by artificial intelligence (AI).

“We also attribute this changing scenario to our corporate clients having a better understanding of the markets, thus managing foreign exchange and interest rate exposures over the short, medium, and long term with greater sophistication,” says Francisco Fernández Silva, managing director and head of the FX sales desk at Chile’s Banco de Credito e Inversiones (BCI).

With sophisticated demand from treasurers and CFOs growing and increased competition from peers, banks have been racing to deploy technological solutions that promise to bring better results and lower operational costs.

“The corporate FX market is undergoing a transformation driven by technological advancements that enhance efficiency, improve risk management, and democratize access for businesses of all sizes,” says Luis Martins, head of Global Macro at BBVA. “As companies increasingly adopt these innovations, they stand to gain a competitive edge in managing their foreign exchange activities effectively.”

However, the market’s most significant shift has occurred at the FX sales desk. Tools such as algorithms and machine learning models have been helping to automate the FX hedging process and other often-complex and highly volatile activities, bringing more-stable results.

BCI’s Fernández Silva also highlights the importance of AI in this revolution. “Breaking technologies, including artificial intelligence, are redefining offerings in the foreign exchange market by incorporating new participants, reducing information asymmetries, and increasing competitiveness,” he says.

Daisy-May Andrew, in interest rates and FX corporate rates sales at BNP Paribas, wrote in a company blog post that, in the current environment, companies must bulk up their currency hedging game with better, faster, automated solutions. “With the right automation tools in place, clients can add systematic hedging checks, which should, in theory, be able to search for the same red flags that one would do manually, albeit without the added concern of human error.”

According to recent research by FX-as-a-service provider MillTechFX, 86% of North American corporations planned to increase their FX hedging activity before the US presidential election, despite 73% noting increased hedging costs. This was due to concern about increased market volatility, among other factors.

Despite the significant numbers, Stephen Bruel, senior analyst at Coalition Greenwich, notes there’s still much ground to gain in FX trading. “Corporates should be encouraging their desks to adopt more advanced tools; the more electronic the trading, the better the data available to analyze execution quality and optimize results,” he added in a prepared statement.

High currency volatility is not alone in preying on corporates’ minds; Russian sanctions, the unwinding of the yen carry trade after 30 years of negative interest rates in Japan, the rise of the Chinese renminbi as an alternative reserve to the dollar, and the growth in alternative investments such as cryptocurrencies also play a role. These concerns have forced the market to increase its focus on currencies other than those of the Group of Five (G5) on the liquidity and product sides.

“Banks have adjusted their product range, offering solutions that include the opening of cash accounts and increased agility in global transactions services,” explains BCI’s Fernández Silva. “In some cases, having the opportunity to trade in different currencies gives clients the chance to realize cost advantages.”

In an October report, J.P. Morgan notes that the advancement of current trade-liberalization efforts across emerging markets, an increase in intranational trading driven by rising domestic customer demand, and these economies’ growing service focus are driving a decline in the proportion of FX reserves held in US dollars.

The trend is more pronounced in commodity markets, where the disruption in energy trade and the People’s Bank of China’s gold-buying spree—which resumed in November after a six-month pause—have prompted a significant change to currency reserves.

Such is the importance of the topic that US President-elect Donald Trump in November threatened to impose a 100% tariff on the nine BRICS countries should they “create a new BRICS currency, nor back any other currency to replace the mighty US dollar.”

Despite the warning signs, J.P. Morgan analysts do not see “de-dollarization” as an imminent threat, but as an important factor for corporations and banks to consider in particular business areas.

“FX reserves offer an incomplete picture of foreign asset accumulation. The rise in EM [emerging market] dollar-denominated bank deposits, sovereign wealth funds, and private foreign assets more than offsets the decline in overall dollar share of EM FX reserves,” says Saad Siddiqui, EM fixed-income strategist at J.P. Morgan, as quoted in the October report.

Zeni’s Shinde agrees that opportunities abound for the non-G5 currency market but notes that corporates and banks should be aware of the risks associated. “Businesses are looking at currencies beyond the traditional G5 to spread their risks. Still, they need to consider factors like stability and ease of trading before using them.”

Along with the myriad technological tools hitting the FX market over the past few years, leading banks have also been investing heavily in improving their research and advisory teams.

Against an FX market driven by central bank decisions and carry trade due to the global pivot to lower interest rates, these teams proved particularly important to corporate customers looking to stay one step ahead of the market.

In keeping with this trend, banks have been digging deep into their pockets to hire new talent. Recently, Citi, Deutsche Bank, Barclays, ING, Nomura, and Saxo Bank, and others, have made strategic additions to their FX departments.

BCI’s Fernández Silva explains the importance of balancing technology with first-class human talent: “In a landscape where central bank decisions and carry trade play a central role in global foreign exchange markets, financial institutions can offer unique value to their corporate clients through analysis of rate movements, economic variables, and exchange rate impacts, thus helping them capture value from carry trade and interest rate movements.”

BBVA’s Martins also highlights the key role of relationship management with clients and dealers. “Being able to offer best-in-class services in today’s foreign exchange markets requires a combination of strong relationships with clients and other dealers, along with top-level technology and data management,” he concludes.

—Thomas Monteiro

Global Finance selects its award winners based on objective factors such as transaction volume, market share, breadth of offerings, and global coverage, as detailed in public company documents and media reports.

Our criteria include subjective factors such as reputation, thought leadership, customer service, and technological innovation. We use input from industry analysts, surveys, corporate executives, and others. Although entries are not required in order to win, submissions that provide additional insight may inform decision-making.

Upon completing its megamerger with failing Credit Suisse in May 2024, Swiss banking giant UBS leveraged its already best-in-class corporate banking and foreign exchange (FX) capabilities and product offerings for a record-breaking year on several counts. Not only did the bank’s global operation more than double analysts’ expectations in the third quarter of 2024, booking a massive $1.4 billion in net income, but it did so with significant gains from its corporate banking division, which saw revenue jump by more than 8% year over year (YoY).

Those numbers received a massive boost from UBS’s thriving FX operation, which averaged over $125 billion in daily electronic FX trades during the year, with more than 2,500 active global clients.

The bank also posted substantial growth across several geographies and currency pairs. Among the highlights: solid profitability growth in Middle Eastern and Northern African currencies and a massive 40% market-share increase in Scandinavian currencies.

In Asia, the bank’s continued effort to improve its already top-tier suite of electronic FX capabilities paid off handsomely in China and Singapore, where it doubled down on its data center improvement efforts this year.

On the technology front, UBS kept expanding the limits of the global FX market, in July hosting the world’s first intraday FX swap in a regulated venue. The bank also recently launched its blockchain-based multicurrency payment solution, UBS Digital Cash. This addition to its’ digital offerings, processed through its flagship FX Engine Room, enhances the bank’s overall offering.            —Thomas Monteiro

Central banks were the star of the show in FX markets in 2024, bringing high volatility amid a global pivot in monetary stance that shifted interest rate differentials between the G5 countries and developing-market currencies. Corporate clients worldwide found a haven in Investec’s team of top FX experts, who led the way in research, analysis, and execution, ensuring that customers stay one step ahead of the competition in spotting the most important market trends.

In addition, the bank’s Investec ix digital platform proved a key differentiator by providing real-time rate visibility, allowing clients to secure competitive rates at a glance amid the shifting macroeconomic environment. Additional features like easy trade execution and payment on the same page were also important to leverage during the year.

Whether clients are individual corporates, small or midsize companies, or large institutions, Investec’s dedicated FX dealers, robust trading desk capabilities, and best-in-breed app guarantee the combination of a tailored approach with global capabilities when it matters most. As a result, the bank has continued to gain significant market share in the global FX world, more than tripling its presence over the past five years.    —TM

One of the largest FX providers in Latin America, Itaú Unibanco kept pushing the boundaries of what it means to provide excellence in trading of emerging market currencies in 2024. From July 2023 through June 2024, the Brazilian banking giant served over 326,000 clients in more than 1.9 million FX transactions in Latin America alone, with a notional amount totaling $225 billion.

Amid growing exports in the region, bolstered by a strong US dollar, an increase in nearshoring initiatives, and geopolitical uncertainty in the breadbasket Black Sea region, the bank leveraged its leadership to provide superior service, handling over $92.7 billion in trade deals during the same period.

To capitalize on the growing demand, the bank has expanded its dedicated FX team, increasing employee numbers by more than 10% from 2021 to 2024. The bank is also boosting investment in technology, increasing tech spending to nearly $20 million in 2024, an 8% rise over the prior two years.

The massive sum supports system modernization and enhances digital service delivery, allowing about 73% of transactions to be executed electronically. The bank’s trading platforms provide real-time pricing linked to market-makers’ books, ensuring competitive and efficient deals for clients.          —TM

BBVA’s market positioning across several geographies, including emerging and developed markets, has proved the key to success for corporate clients seeking to take advantage of the fast-paced interest rate environment of 2024.

The bank’s centralized core pricing engine is key to leveraging its FX capabilities to the next level, providing consistent and competitive FX rates globally. As the backbone for processing and executing FX transactions, the engine ensures that pricing is optimized and dependable. The bank also shines brightly through its unrivaled suite of fast-execution digital channels, with offerings such as BBVA Net Cash, which aligns FX goals with corporate clients’ business requirements; and BBVA eMarkets, which integrates FX with broader investment banking needs.

These tools ensure solid and instant liquidity in markets from Latin America to Turkey. They offer streamlined access to one of the most diverse ranges of FX products in the market, including spot, swaps, forwards, and more-complex structured products like options and exotics.

Due to top-level execution, the Spanish behemoth reached all-time highs in monthly electronic FX business volumes last year, boasting one-fifth of the market share in derivative volumes in 2024: a significant milestone.         —TM

The winner of the global Best FX Market Maker award is J.P. Morgan, reflecting its strong market position, deep resources, and technological prowess. These attributes allow the bank to provide exceptional scale and market access while efficiently handling high volumes of FX transactions.

One such solution is the bank’s Execute platform, which offers corporate and institutional clients full-service macro trading from a single platform. The benefits include diverse liquidity access, trade transparency, and competitive pricing for streamlined FX execution, as well as the ability to execute trades across over 300 currency pairs with efficient order routing across multiple electronic communication networks. The platform also provides enhanced functionality through various channels, including the web, application programming interfaces, and desktop or mobile devices, along with real-time analytics to access market insights from J.P. Morgan traders and analysts. Execute also includes a customizable alert feature to capture market movements. The Execute Mobile component provides transaction efficiency through one-touch trade execution, the ability to view historical trades, and a market monitor for FX rates.

The bank has also expanded its capabilities for FX options with an integrated platform that allows clients to transact a range of vanilla, exotic, structured, or multileg instruments. Additional features include the ability to view the market with multicurrency volatility grids and live insights from the bank’s options traders.           —David Sanders

Nordea’s undisputed positioning in the global FX environmental, social, and governance (ESG) market goes far beyond the bank’s extensive suite of investment products. ESG principles are a core part of the bank’s operation, providing unique market knowledge and opportunities for small and large companies.

The Nordic bank’s customers enjoy a full holistic sustainable-finance advisory that helps them allocate resources efficiently and protect against risks in the sector, particularly as the global ESG market stages a rebound thanks to 2024’s currency volatility.

Moreover, the bank’s extensive FX Algo Suite, which covers the full spectrum of FX transaction needs, from passive to aggressive market positionings, has proven a game-changer for those assessing market risks. It is further supported by the bank’s proprietary model of ESG accountability, which provides customers with another layer of confidence when making ESG-related investments on and off the FX spectrum.

This outstanding ESG offering is complemented by top-tier FX market research and financial advisory that allows clients to tailor market opportunities and financial planning to their needs and goals.     —TM

By offering first-class, tailor-made solutions for importing and exporting FX-related products, BTG Pactual, Latin America’s largest investment bank, rode the positive wave in Latin American commodities to a record-beating third quarter.

Although the Brazilian giant’s investment banking operation faced some macro headwinds, primarily due to underperformance in its home stock market, its corporate lending and business operation more than compensated, notching a phenomenal 29% YoY revenue growth as of the third quarter.

Against a backdrop of increasing export-related profitability and high currency volatility due to a devaluating Brazilian real, BTG helped clients in all areas of the commodity market by providing a combination of fast execution, excellent financial advisory, and top-grade hedging products.

The bank also continued expanding its FX funds offering last year, allowing clients based in Latin America to adopt more-sophisticated foreign currency holdings and hedging solutions. This allowed clients to benefit from a thriving global market.

BTG’s superior offering and financial planning helped commodity clients, in particular, weather growing supply costs due to the devaluating local currencies in Latin America. —TM

Adjudged the best bank for foreign exchange (FX) in Africa, Standard Bank continues to service the cross-border payment and funding needs of its corporate, investment, and individual clients despite the currency volatility and devaluation challenges that many African countries face. Standard Bank has an FX transactions market share of 30% in the African countries in which it operates. At the same time, it is one of the top finance institutions for FX needs in countries such as South Africa, Angola, and Zimbabwe.

Accounting for a larger market share “allows us to make, maintain, and manage a live, active, and tradable market price,” says a bank spokesperson. Standard Bank has more than 100 employees dedicated to its FX business, covering sales, trading, and operations. There are three dedicated FX trading desks: spots, forwards, and futures.

With 1.6 million trades per year and $1.7 trillion in overall turnover, Standard Bank signed an agreement in November with the World Bank’s International Finance Corporation on cross-currency swaps and derivatives for Africa. FX and local currency liquidity can be challenging in Africa, where some market reforms and attractive returns increasingly bring in more global investors, raising FX needs and transactions.

“There is growing interest in sub-Saharan countries, with investors recognizing the continent’s potential,” said Kayode Solola, head of global markets for Africa at Standard Bank Group, in comments accompanying the announcement.

The bank’s FX professionals “have the skills to support a diversified international and domestic client base trading in all G10 as well as 40 African currencies,” says the bank.

Winning the Best FX Bank awards in Africa and Angola represents international recognition of Standard Bank’s capabilities in meeting clients’ foreign currency demands.               —Tawanda Karombo

South Korean–based Hana Bank has established itself as a regional leader in the Asian financial markets, particularly in providing FX services. The bank has grown from a local financial institution into one of the most significant players in the global banking industry, and is currently boasting total assets of $400 billion.

“Hana Bank’s success in the foreign exchange market is built on our unwavering commitment to innovation and customer-centric solutions,” says CEO Lee Seung-lyul, the first CEO of Hana Bank with a background in foreign exchange. “We continually invest in cutting-edge technology and strive to offer the industry’s most efficient and secure FX services.”

This demonstrated expertise enables the bank to offer tailored solutions that meet the specific needs of its clients, whether they are looking to hedge against currency risk, make international payments, or engage in speculative trading.

This award recognizes Hana Bank’s outstanding performance and innovation in the FX market and underscores its position as a trusted and influential player in FX services.           —Simon Littlewood

This year’s winner for Central and Eastern Europe (CEE) is OTP Bank. Privatized in the 1990s and formerly the National Savings Bank of Hungary, OTP Bank is now a familiar name across the 11 countries in CEE and the Central Asia region where it has a presence. It sold its operations in Romania to Banca Transilvania because local regulations prevented it from further expansion. OTP is renowned for its innovative yet flexible service.

OTP Bank runs a centralized FX operation out of its Budapest headquarters. Ten traders and 25 salespeople conduct transactions for the main and regional subsidiary banks, offering pricing for 100 currency pairs.

The bank has started an internal digitalization project to simplify and accelerate the workflow for FX transactions. It operates a groupwide internet-based platform where clients of six subsidiaries can conclude FX transactions and convert funds into more than 40 currencies. The system already operates in Russia, Bulgaria, Serbia, Montenegro, Slovenia, and Croatia. Management is keen to introduce it to other subsidiaries and add new currency pairs to improve service and market coverage.

In November 2024, OTP contracted Integral Development, a leading currency-technology provider based in Palo Alto, California, to improve and automate foreign exchange pricing and distribution to the bank’s clients in FX spots, forwards, and swaps. According to Integral, its systems offer “liquidity aggregation, pricing engine, trading, and risk management solutions to deliver the highest pricing accuracy and reliability to its clients. … The flexible architecture ensures that OTP Bank can easily scale and adapt its FX infrastructure to meet evolving client needs” across the CEE region.            —Justin Keay

Despite already occupying a leading position in Latin America’s FX market, the Brazilian behemoth Itaú Unibanco kept expanding its offerings and robust geographical presence to notch another year of sustained growth in volume and profitability.

From July 2023 to June 2024, Itaú executed over 1.9 million FX transactions, with a total notional amount of $225 billion. The bank served over 326,000 clients during the period, demonstrating its extensive reach and expertise in managing substantial transaction volumes and liquidity.

Amid the region’s increasingly competitive market, the powerhouse accelerated its technological investment. This jumped from approximately $15.9 million in 2022 to nearly $17.2 million in 2024, mainly focused on improving the bank’s cloud platforms and microservices architecture.

The bank also added generative artificial intelligence to its offerings, thus enhancing efficiency and scalability in client operations. This endeavor has already generated significant results, with Itaú increasing its automation rate from 25% to 44% in 2024.

Despite its growing investment in technology, the bank continued to support its team of FX professionals. The team boasts around 350 best-in-class employees across several functions including sales specialists, support specialists, sales traders, and market-makers.         —Thomas Monteiro

Qatar National Bank (QNB) is the largest bank in the Middle East by assets. It operates in 28 countries, including 14 in the region. Its leading FX business, capitalizing on its strong credit rating, which reflects its financial strength and partial state ownership. A solid custody business aids FX operations.

The bank has significantly increased its market share of inflows to Qatar and international markets. QNB has broad access to the region, global financial hubs, and a broad network across Asia. The bank has rolled out a new cash management platform and ramped up business and operational capabilities. QNB has strengthened its offering as an integrated payment provider for cross-border transactions.

QNB has launched programs for exporters as well as cross-selling initiatives based on its trade finance and cash management capabilities. International payments have increased due to a new remittance system and enhancements to the bank’s correspondent account management and treasury transaction services. QNB successfully onboarded the first clients into its application programming interface (API) platform. Clients can now increase their internal financial accuracy and eliminate manual processes by accessing daily FX rates through API functions.

The FX desk has continued to perform well. The bank has improved its client service due to investment in stronger FX capabilities, allowing it to capture market opportunities.      —Darren Stubing

With its comprehensive suite of FX services, J.P. Morgan (JPM) has earned our award as Best FX Bank in North America. Through its Execute and Transact platforms, the bank offers institutional clients innovative solutions with an integrated approach to FX execution, including commodities and rates trading capabilities.

JPM’s Execute provides exceptional liquidity access, efficient execution, and trade transparency through robust market-analytics features, real-time data for trade optimization, and live support from traders and analysts to streamline workflows. The platform is accessible through multiple channels, including the web, APIs, and desktop or mobile devices. Execute Mobile provides market data and one-touch trading ability.

With FX Algos on Execute, clients can customize algorithmic trading strategies for greater efficiency, enhanced trade transparency and performance, and integrated pre-trade and post-trade analytics tools. Through JPM’s Transact digital platform, clients benefit from robust FX hedging and settlement solutions to manage cross-border exposure covering over 100 currencies. These offerings are integrated with treasury and cash management functions, contributing to a more efficient workflow.

Innovative new developments include advancements in blockchain technology through the Kinexys platform, which facilitates cross-border transfers. Integration with JPM’s FX services is expected in early 2025, enabling clients to execute and settle FX transactions with greater flexibility and efficiency and reduced settlement risk. —David Sanders

In a year when volatility was the norm across Western European markets, with several central banks pivoting their monetary stances, BBVA’s best-in-breed FX management and comprehensive suite of technological offerings gave the bank’s users a significant edge.

By leveraging its knowledge and presence across different geographies, the Spanish banking giant managed to post positive numbers in most of the region’s currencies, including the euro, British pound, Norwegian krone, Swedish krona, Danish krone, and Swiss franc. The secret behind BBVA’s outstanding performance is a combination of local-market expertise and a powerful, user-friendly app that allows users to instantly access and execute products such as FX spots, forwards, swaps, options, and structured notes, at the click of a button, with the best insights in the market.

Our Best FX Bank in Spain, BBVA also doubled down on its efforts to support growth in Western Europe by focusing on products that cater to the specific needs of the region’s small and midsize enterprises (SMEs). Through its flagship Net Cash app, the bank enables SMEs to hedge their FX exposure, order international transfers, and configure FX market alerts, all through a user-friendly interface tailored to their habits and needs.        —TM

China continues to search for antidotes to an ailing economy and the deterioration of its real estate market, and the banking sector continues to expand. GDP growth rose to 5.2% in 2023, up from 3% in 2022, but it is now forecast by the International Monetary Fund (IMF) to fall to 4.8% in 2024 and further, to 4.5%, the following year. Meanwhile, China has contributed to balance sheet growth for each of the institutions that earned a place in our ranking of the biggest emerging market banks.

China claims the top 15 spots and 25 entries overall out of 50, with an average increase in assets of 7%; together, the country accounts for 90% of aggregate assets represented in our ranking.

India has posted high GDP growth in recent years, including 8.2% last year, according to the IMF, and the five Indian banks that earned a place in our top 50 have expanded strongly as well. In 2023—our year-end for these rankings—HDFC Bank, the country’s largest private sector bank, completed its merger with India’s largest housing finance company, like-named HDFC Ltd., boosting the bank’s assets by 50% in the country’s largest M&A deal to date. The remaining four Indian banks in our ranking averaged 7.5% balance sheet expansion during 2023.

While South Korea’s economy has rebounded this year, GDP slid to a three-year low of 1.4% in 2023, likely contributing to asset growth under 1% for all seven of the Korean banks represented in our ranking.

A broader picture emerges when looking at the 50 biggest emerging market banks without the dominant Chinese institutions. This view broadens the global scope of the top 20 alone, where China holds 19 spots. The expanded view adds three more Indian banks, for a total of eight, as well as representions from Africa, Latin America and more from the Middle East.

Global Finance’s 2024 ranking of the world’s 50 largest banks highlights institutions that have built powerful franchises in their respective markets, with extensive rosters of corporate, commercial, and retail clients. Their sheer size makes them industry leaders, and by leveraging thier diverse banking platforms they have grown their balance sheets.

Additionally, banks that earned a place in our 2024 ranking are highly influential in shaping the industry’s best practices, with the deep resources needed to attract top talent and develop innovative products and services.

Balance sheets for the top 50 expanded 4% in 2023, giving them aggregate assets of $92.8 trillion: a turnaround following a 2% decline for last year’s winners.

Chinese banks have consistently ranked as the world’s largest; this year, they hold the top four positions in our ranking, with Industrial and Commercial Bank of China on top at more than $6.2 trillion in assets. The top four banks averaged 11% asset growth and the 15 Chinese banks in the top 50 posted an average 6% year-over-year (YoY) increase.

In Japan, the three banks included in our ranking—Mitsubishi UFJ Financial Group, Sumitomo Mitsui, and Mizuho—all suffered an average 5% balance sheet contraction in 2023, which could be seen as a reflection of the country’s difficulty sustaining economic growth.

Euro area economies had similar challenges, with an average of less than 1% GDP growth in 2023, according to the IMF. The 14 eurozone banks in our top 50 averaged a 1% increase in assets. YoY changes include new entrants Banque Federative du Credit Mutuel at No. 47 and State Bank of India at No. 49, replacing Norinchukin Bank and CaixaBank.

The common thread running through this year’s country winners is the resilience they demonstrated during a period of higher interest rates linked to central bank efforts to tame rising inflation. Now, inflation is declining globally and central banks have begun to ease rates as their focus shifts to sustaining economic growth.

That means banks face a different set of challenges and opportunities. The pace of rate cuts is particularly important for those in developing and frontier economies, which stand to gain from an interest rate stance that favors growth following a prolonged period of elevated rates and sluggish GDP. During that stretch, sovereign rating downgrades, particularly in developing and frontier countries, were often the catalyst for follow-on ratings action on their respective banking systems.

Most of our 16 new country winners were in these developing markets. The overall picture was mixed; however, many jurisdictions saw positive developments, including rating upgrades that benefited their banks.

Negative credit trends and the withdrawal of bank ratings resulted in new winners in three Latin American markets. Following Ecuador’s sovereign debt downgrade last year, due to its deteriorating funding and liquidity profile, Fitch downgraded several Ecuadoran banks as well. However, they maintained Produbanco’s rating, confirming the latter as this year’s winner.

In Bolivia, S&P’s withdrew the remaining rating of incumbent Banco Mercantil Santa Cruz, allowing Banco de Credito to claim the top spot. Similarly in Venezuela, Fitch withdrew its rating of last year’s winner, Mercantil Banco Universal, leaving no rated candidates in that country.

Western Europe sees three new winners this year. Hellenic Bank takes the top spot in Cyprus, aided by a Fitch sovereign debt upgrade and improved bank credit fundamentals. With its leading position as the largest bank in Denmark, Danske Bank is a new winner following a two-notch upgrade by Moody’s in May reflecting improved governance controls in response to findings of deficiencies in its Estonian operations. Fitch cited this operational remediation as well as improved profitability and capitalization as the bases for its upgrade last fall. Islandsbanki is our new winner in Iceland as the bank picked up a new Moody’s rating in September 2023, edging out incumbent Arion banki this year.

Moody’s upgraded its ratings for five Azerbaijani banks, including the International Bank of Azerbaijan (IBA), based in part on improving trends in the country’s economy, including efforts to diversify beyond the oil sector. While IBA’s score is equal to last year’s winner, Kapital Bank, IBA is larger, earning it the top spot for 2024.

Likewise, in Georgia, TBC Bank is slightly bigger than last year’s winner, Bank of Georgia, giving TBC the Safest Bank title. In Turkey, Fitch and Moody’s upgraded a range of banks following their upgrade of Turkey’s sovereign debt and reflecting increased confidence in the new macroeconomic policies the government implemented last year. These in turn benefit the banking sector, in part by improving access to foreign funding. Each agency acted on up to 17 banks. When the dust settled, Turkiye Garanti Bankasi emerged as this year’s winner. (Fitch upgraded 24 Turkish banks in September, but this rating action occurred after our ratings cutoff date of August 16, 2024.)

Indonesia’s largest bank, state-owned Bank Mandiri, benefits from its leading franchise, solid credit profile, and an improving operating environment. As it is a systemically important domestic bank, both Fitch and S&P cited enhanced levels of government support as the rationale for their upgrade of Mandiri, allowing it to take the top spot.

Under our methodology, a bank that is wholly owned by its parent is ineligible. In Cambodia, ACLEDA is the new winner, as the incumbent, Advanced Bank of Asia, is a 100% owned subsidiary of National Bank of Canada.

Similarly, First Iraq Islamic Bank emerges as a new winner after S&P initiated coverage and incumbent Trade Bank of Iraq was downgraded by Fitch. Citing an improved strategic mandate that will contribute to United Arab Emirates’ economic transformation and a high level of implied government support, S&P upgraded Emirates Development Bank, helping it unseat First Abu Dhabi Bank as the safest in the UAE.

Stanbic Bank Kenya unseated KCB Bank Kenya (KCB). Fitch and Moody’s each downgraded KCB following a lowering of Kenya’s sovereign rating. Stanbic Bank Kenya is not rated by Moody’s and dodged a Fitch downgrade due to its 75% ownership by South Africa’s Standard Bank Group. Securing a new bank rating frequently provides a critical boost in our scoring model: Our winner in Ivory Coast, new entrant Banque Internationale, benefited from Fitch initiating rating coverage that began last December.

To be eligible for inclusion in Global Finance’s Safest Banks By Country, institutions must rank among the world’s largest 1,000 banks by assets and carry at least one long-term foreign currency deposit or debt rating from one of the three major rating agencies. Wholly owned subsidiaries are ineligible. Criteria are broader than for our global rankings, which require a position among the largest 500 banks and rating by at least two agencies.       

Islamic banks based in the Gulf Cooperation Council (GCC) countries continue to expand their reach, taking on Shariah-compliant transactions in new industries and establishing new strategic partnerships.

That aggressive approach has already paid off in years of double-digit growth, and the outlook remains favorable. Moody’s forecasts strong profitability over the next 12-18 months based on solid economic growth in GCC countries, robust commercial activity, and government initiatives that give Islamic finance a bigger role in diversifying the region’s economies.

Part of this growth will come from financing new asset classes. As Islamic banks are required to back every transaction with a tangible asset, real estate has been a large component; but the sector is broadening its reach to include telecommunications and airline assets and sustainability projects. Fueling this expansion is strong issuance of Shariah-compliant sukuk bonds. According to Moody’s, year-over-year issuance of sukuk in the GCC states rose 138% to $69 billion as of June, with Saudi Arabia accounting for 37% of total issuance.

The Gulf’s Islamic banks look to build on this momentum through strategic partnerships. With the recent launch of ADIB Ventures, Abu Dhabi Islamic Bank (ADIB), which tops our rankings, aims to accelerate its digital transformation, collaborating with technology firms to build its own fintech ecosystem. The bank expects this will help it leverage artificial intelligence and other advanced technologies to identify and launch new Islamic banking solutions. In June, ADIB formed a strategic collaboration with DIFC Innovation Hub, the largest financial technology accelerator in the Middle East, which works with clients in Africa and South Asia as well.

This year’s ranking of the safest Islamic banks once again reveals some notable changes.

In March, Fitch upgraded Qatar’s sovereign debt rating, then subsequently boosted the ratings of three Qatari-based banks. Partly on the strength of these upgrades, Qatar Islamic Bank moved up to No. 2 in our rankings from No. 5, Dukhan Bank advanced two spots to No. 6, and Qatar International Islamic Bank moved up two places to No. 7.

Ahli United Bank leaves our ranking due to its acquisition by Kuwait Finance House, creating the second-largest Islamic bank, behind Saudi Arabia’s Al Rajhi. This allowed Warba bank to enter the ranking at No. 10.

For the commercial banking sector, continuous innovation, strong product development and customer service, and effective risk management are just some of the critical elements necessary to sustain and grow a franchise. The banks included among our 50 Safest Commercial Banks continue to demonstrate leadership in their respective markets to earn a spot in this year’s rankings.

The interest rate cycle has shifted in many jurisdictions, as central bank policy has now adopted an easing stance following a period of elevated interest rates necessary to battle inflation. During this time, much of the sector enjoyed healthy profitability bolstered by expanding net interest margins. However, as central banks continue to cut rates to maintain economic growth, it remains to be seen how long banks can sustain these margins as successive rate cuts take hold.

To maintain growth and profitability, these institutions must continue to embrace innovation to boost revenue and increase the efficiency of bank operations. In recent years, the sector has focused on honing its digital offerings with online and mobile banking platforms to provide customizable solutions and powerful apps with user-friendly interfaces and dashboards, to better attract and serve clients. While this involves leveraging vast amounts of bank data to identify and target new customers and products, many banks are accelerating this process by utilizing generative AI technology to unlock valuable insights from this data more rapidly, for the development of new services, automation of internal processes and workflows, and elevation of the bank’s risk management capabilities to better manage inherent risks related to cybersecurity, fraud protection, and compliance issues.

In addition to solid operating performance by many banks, regulatory requirements are also contributing to enhanced capital positions. This has resulted in ratings upgrades and consequent movements in our rankings. Australian banks made the biggest of those moves, as Commonwealth Bank of Australia, ANZ Group, National Australia Bank, and Westpac each rose 10 spots year-over-year and now place among our top 10. This follows upgrades by Moody’s and Fitch during the first half of 2024 that reflect the implementation of a formal resolution-planning framework that also involved an increase in loss-absorbing capital buffers at these banks. This development is designed to ensure stability in the Australian financial system, as these banks collectively represent over 70% of banking system assets.

In many instances, upgrades to a country’s sovereign ratings have a follow-on impact on the ratings of their banks, given the increased ability of the government to support the banking sector. In March, Fitch upgraded the sovereign rating of Qatar to AA, subsequently boosting the ratings of seven Qatari banks including Qatar National Bank, which moved up 11 places to No. 31.

Additional moves as a result of positive rating action include UBS, which rose eight spots in our ranking to No. 21 as a result of a Moody’s upgrade to Aa2 in May 2024. This upgrade reflected the Credit Suisse acquisition, which added additional long-term debt providing loss-absorbing benefits. The bank has stabilized the Credit Suisse franchise following its acquisition in 2023.

With its leading position as the largest bank in Denmark, Danske Bank jumped into the rankings at No. 39 following Moody’s two-notch upgrade of the bank’s long-term debt rating to A1 from A3 in May. This reflected an improvement in governance controls following deficiencies in the bank’s Estonia operations. Fitch cited this operational remediation as well as improved profitability and capitalization as a basis for its upgrade to A+ from A in Sept. 2023. NongHyup Bank benefited from a Moody’s upgrade in November 2023 to Aa3 from A1, and is a new entrant at No. 45.

Under the methodology for the World’s Safest Banks rankings, commercial banks that are majority state owned or receive sponsorship by their governments or regional bodies are excluded. Institutions here may operate in the same markets as state-sponsored competitors but don’t benefit from government backing. Additionally, institutions that are wholly owned by their parent company are ineligible under our criteria.

The institutions in our 50 Safest Emerging Markets Banks rankings are facing a challenging operating environment from rising geopolitical tensions, potential disruptions of global trade, and commodity price volatility. Many banks have posted solid operating performance in recent years, as successive interest rate hikes reduced inflation in their regions and globally and also boosted profitability with expanded net interest margins. Now, as central banks begin to ease interest rates to support their respective economies, the banking sector will focus on sustaining profitability in a lower-rate environment by expanding their loan portfolio and other products.

In the Asia-Pacific region, China’s economy continues to struggle, burdened by a depressed real estate market and weak consumer demand. Growth forecasts indicate further deterioration, with projected GDP of 4.9% in 2024, down from 5.2% last year and falling to 4.5% in 2025, according to the Organization for Economic Co-operation and Development (OECD). Further deterioration in the Chinese economy presents a risk of contagion regionally and globally, with trade disruptions.

South Korea is vulnerable under this scenario, as China is one of its largest trading partners. But the country is on solid footing, bolstered by a strong consumer-technology sector and a semiconductor industry that is enjoying record exports. The South Korean banking sector’s strength is evident in our rankings, holding the top three spots and placing eight banks among the top 15. However, with the OECD’s GDP growth outlook for 2024 revised downward slightly from the organization’s earlier forecasts, to 2.5%, policy makers at the Bank of Korea are looking to ease interest rates.

Taiwanese banks are also well represented in our ranking and place eight institutions among our Top 50. Taiwan’s critical role in the semiconductor sector, combined with trade tension between the United States and China, carries its own set of geopolitical risks.

Chinese banks hold nine positions on our list, up from eight last year. China Merchants Bank is a new entrant.

In the Middle East, which places 18 banks across four countries in our Top 50 Emerging Markets rankings, the danger of a widening conflict between Israel and other Middle Eastern countries poses significant risks to the region’s banking systems and economies. As China’s demand for oil has declined, given its weakening economy, any escalation in the current war could potentially destabilize the oil supply from the region.

Year-to-year changes in our rankings are the result of a number of factors, including expected ratings fluctuations and other elements of our selection methodology. While Emirates Development Bank has a smaller balance sheet than its emerging markets peers on this list, it enters our ranking this year at No. 5 because it now has an asset size that puts it among the top 500 banks with two agency ratings—a requirement under our methodology. Additionally, the bank’s ranking was bolstered by an upgrade to AA by S&P in May.

In many instances, upgrades to a country’s sovereign ratings have a follow-on impact on the ratings of their banks, given the increased ability of the government to support the banking sector. This is the case in Qatar, where Fitch upgraded the sovereign rating to AA in March and subsequently boosted the ratings of seven Qatari banks, five of which are represented in our rankings. Qatar National Bank thus moved up five spots to No. 7, while Qatar Islamic Bank rose 11 places to No. 30. New entrants as a result of this sovereign upgrade include Dukhan Bank at No. 44, Qatar International Islamic Bank at No. 46, and Ahli Bank at No. 47.

In South Korea, a Moody’s upgrade of Suhyup Bank last November helped it to rise 10 spots in our ranking to No. 32. UAE-based Mashreq Bank rose seven places to No. 42 as a result of a Moody’s upgrade in May 2024. Year to year, industry consolidation is a frequent catalyst for position changes, and Ahli United Bank is no longer represented following its acquisition and integration by Kuwait Finance House, now at No. 37. China Merchants Bank is also a new entrant at No. 48 following an S&P upgrade to A- in March. Consequently, these events and upgrades pushed Banque Saudi Fransi, Arab National Bank, and Saudi Awwal Bank out of the rankings. It’s important to note that, with these upgrades, the score cutoff for inclusion in our 50 Safest Emerging Markets Banks rose to 13 points from 12.5 points last year.