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Unformatted text preview: THE TOP 1000 WORLD BANKS 2006 - The Banker You are in: z Surveys & Reports 2006 Top 1000 World Banks 2006 THE TOP 1000 WORLD BANKS 2006 Published: 03 July, 2006 Page: 178 BANKS AROUND THE WORLD ONCE AGAIN NOTCHED UP RECORD PROFITS THIS YEAR BUT THE PACE OF GROWTH IS BEGINNING TO SLOW DOWN. BY STEPHEN TIMEWELL . RESEARCH BY TERRY BAKER-SELF , BEATA GHAVIMI & GIULIA PAOLI . HIGHLIGHTS Page 1 of 8 THE TOP 1000 WORLD BANKS 2006 - The Banker 2007-10-23 http://www.thebanker.com/news/fullstory.php/aid/4129/THE_TOP_1000_WORLD_BA... z The aggregate return on Tier 1 capital of the 2006 Top 1000 world banks listing hit another record high, reaching 22.7%, well above last years 19.9%. z Growth in aggregate pre-tax profits of the listing slowed to 18.6% from 30.3% the previous year, but aggregate profits reached a record $645.1bn. z Growth in Tier 1 capital and assets in the 2006 Top 1000 world banks both slowed to 3.7% and 5.5% respectively, but both produced record aggregate volumes of $2,841.3bn and $63,825.8bn respectively. z The 286 banks from the EU25 in the listing account for 50.7% of the banks aggregate assets and 37.4% of aggregate profits. z The 197 banks from the US in the Top 1000 account for 26.5% of the banks aggregate profits. z The Top 25 banks by Tier 1 capital in the listing own 40.8% of aggregate assets. z The six largest banks in the world account for 15% of Tier 1 capital and 17.2% of aggregate profits. z The 44 Latin American banks produced the highest aggregate return on capital in the listing at 33.2% and the highest return on assets at 2.84%. Banking around the world has achieved record profits and profitability for the third successive year as globalisation, steady economic growth and expansion in consumer banking, among other factors, have continued to produce hugely successful results for banks across almost all markets. In The Banker s Top 1000 World Banks listing for 2006, the overall aggregate level of bank profitability (pre-tax profits to Tier 1 capital) broke through the 20% return on capital benchmark for the first time, reaching an unprecedented 22.7%, well ahead of last years 19.86% and the previous record of 17.91% in the 2001 listing. Profits up but growth slowing Banks are becoming significantly more profitable and posting significantly higher returns, but profit growth is definitely slowing. While aggregate pre-tax profits jumped 65.4% to $417.4bn in our 2004 listing, and went up a further 30.3% to $544.1bn in our 2005 listing, The Banker s 2006 listing grew by a relatively moderate 18.6% to reach a record $645.1bn. This third year of bumper profits contrasts sharply with the lean years earlier in the decade when aggregate pre-tax profits in our 2002 listing were just $222.8bn around a third of this years total....
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