The leading banks in many emerging markets are reporting big gains in earnings, at a time when money center banks in the industrialized economies are suffering significant losses as a result of the global credit crisis. Fast economic growth and lack of exposure to the US subprime mortgage problems are two reasons that well-managed banks in emerging markets are performing so well.

This out-performance is true not only of banks operating in the oil-rich countries of the Middle East and the fast-growing export economies of Asia but also in some African countries, as well as in Central and Eastern Europe and in Latin America.

International banks from the major industrialized nations and increasingly aggressive regional financial institutions are providing growing competition for local banks in emerging markets. Attracting and keeping talented employees is the biggest challenge facing most financial institutions operating in these markets.

While bankers in the developed economies are bracing for an economic slowdown, their counterparts in the emerging markets are more worried about a flare-up in inflation and keeping up with the fast pace of growth in their home markets. The emerging market banks are doing their best to keep costs under control and to meet the rapidly expanding requirements of their customers. Many of them are opening new branches and acquiring competitors.

In many emerging markets, banks are also extending a hand in providing desperately needed social services, including support for healthcare and education. Standard Chartered Bank Zambia, for example, is helping to distribute insecticide-treated mosquito nets to fight malaria. Bankers are also paying more attention to the effects of their lending policies on the environment and are introducing technology that makes doing business in emerging markets far simpler than it used to be.

In selecting this year's winners, we relied as always on input from industry analysts, corporate executives and banking consultants, as well as research by Global Finance's editorial team. Our selection criteria included knowledge of local conditions and customer needs, growth in assets, profitability, strategic relationships, experienced staff, innovative products, competitive pricing, level of non-performing loans and use of technology.

Altogether, we chose the best emerging market banks in five regions of the world and 91 countries. The winners are not always the biggest banks but, rather, the best banks-those with the qualities that corporations should look for when choosing a bank. These are banks with effective risk-management systems, first-rate service and good corporate governance. Many are involved with microfinance and lending to small and medium-size businesses, as well as meeting the needs of the growing ranks of major corporations in their countries.

Fast-growing emerging markets such as China and India are helping to keep the global economy afloat at a time when the developed economies of the United States, Europe and Japan are faltering. Strong spending by oil-exporting countries also is helping to support growth. The best banks in emerging markets are helping to ensure that banking systems in these countries offer the products and services necessary to promote development and, ultimately, improve the living standards of the majority of mankind. The winners of these awards are deserving of them because of their hard work and vision, not simply because they happened to be based in the right country at the right time. -Gordon Platt

CENTRAL & EASTERN EUROPE

Regional Winner: RZB/Raiffeisen International

The expansion of the RZB Group and Raiffeisen International in Central and Eastern Europe continues unabated. Building on its acquisition of Bank Aval in Ukraine in 2005, it acquired Russia's Russian Impexbank in early 2006 and the Czech Republic's eBanka in July of that year. The acquisition of Impexbank was particularly notable: When the local Raiffeisen Bank and Impexbank merged in November 2007, the new entity became the local number seven and the leading Western bank in Russia. This expansion has not come at the cost of profitability. Earnings have continued at record levels, with consolidated profit for the third quarter of 2007 of euro224 million-51% higher than the same quarter a year earlier and the best quarterly result in the group's history. Most impressively, it was the 11th consecutive quarter of record earnings for the bank. Consolidated profit reached euro626 million in the first three quarters-an increase of 43% compared with the same period of 2006. Over the past five years Raiffeisen International has increased its consolidated profit by an average of 55% a year.

* Herbert Stepic, deputy chairman and CEO

www.rzb.at

ALBANIA

Raiffeisen Bank Albania

Raiffeisen Bank Albania is the largest bank in the country and occupies the number-one position for all major performance indicators. Its asset base is close to euro2 billion, and it has a network of 96 branches throughout the country-almost three times more than its nearest competitor. With 160 ATMs, 400 point-of-sale (POS) terminals and a team of mobile bankers, Raiffeisen-which, as Albanian Savings Bank, was bought in 2004-has a distribution network almost three times larger than its nearest competitor. Over the past three years Raiffeisen has been completely transformed from a state bank into a full-service bank, serving all sectors of the business and private individual markets. Its loan portfolio has grown from zero in 2004 to euro483 million by the end of 2007. Total assets grew 9% in 2007, net profits rose an astounding 37% on the previous year, and return on equity (ROE)-while down on 2006-was an extremely impressive 46.69%.

* Oliver Whittle, CEO

www.raiffeisen.al

BELARUS

Belagroprombank

Belagroprombank, a state-owned company, is the second-largest bank in Belarus (after Belarusbank) by assets but is growing rapidly. Its asset base grew an impressive 142.4% in 2007 while its deposit base grew 140.1% and its regulatory capital increased 121.8%. While return on equity is still a miserable 4.4%, Belagroprombank appears to have embraced the opportunities available: Its smart new logo reflects a new approach for the bank, with products targeting specific segments of the market. The bank is beefing up its retail offering with new products, including credit and debit cards, and is increasing its branch network. It has also opened its first branch in Italy following the growth of trade between that country and Belarus. International investors have welcomed the changes Belagroprombank is implementing. The bank accessed the syndicated loan market for the first time in August 2006 and returned in February this year to a rapturous welcome that resulted in the issue being doubled to $40 million.

Rumas Sergej Nikolayevich, chairman of the board of management

www.belapb.by

BOSNIA & HERZEGOVINA

Raiffeisen Bank Bosna i Hercegovina

Raiffeisen Bank remains the largest individual bank in Bosnia and Herzegovina and is the best, with an unrivaled offering for private individuals, small and medium-size enterprises (SMEs) and the largest entities in the country. The bank grew its total number of customers to nearly 709,000 in 2006-an increase of 16.8%. Moreover, at the end of 2007, its assets amounted to euro1.96 billion-23% higher than a year earlier-and ROE reached 17.7%. Raiffeisen ranks second after the combined forces of UniCredit HVB's three banks in Bosnia and Herzegovina for loan volume but is growing more rapidly at 15.64% growth in 2007 compared to HVB UniCredit's 10.53%. Similarly, while the UniCredit HVB group took in more deposits in 2007, Raiffeisen experienced the fastest growth at 15.62%.The bank plans to expand its network to 100 branches from the current 91 and to offer an increasingly sophisticated product range to its customers-including cash management, standard credit products and project finance.

Michael Müller, director

www.raiffeisenbank.ba

BULGARIA

UniCredit Bulbank

During 2006-the last year for which figures are available-Bulbank, which is part of UniCredit, prepared the groundwork for its merger with HVB's Bank Biochim and Hebros Bank as part of the global merger of UniCredit Group and HVB Group in Bulgaria. The merger, which finally took effect in December 2006 and was completed by April 2007, has created a national leader in most market segments and business lines possessing a strong customer base, robust capital and sound asset quality. UniCredit Bulbank was ambitious in its goals for the merger, implementing a new technology platform for all three banks as part of the change. Nevertheless, over the year business did not suffer. Indeed, Bulbank exhibited healthy growth in income and volumes, confirming its strong focus on value creation and its prudent risk policy, and it increased net profit by 25.1% on 2005. Profitability improved markedly: The bank's return on average equity (ROAE) went up to 19.5% while the cost/income ratio further improved to 38.9%. Meanwhile, non-performing loans fell to just 1.5%-helping the bank to gain an S&P ratings upgrade to BBB+ in October 2006, equal to the sovereign rating of the country.

Levon Harnpartzournian, chairman and CEO

www.bulbank.bg

CROATIA

Privredna Banka Zagreb

Privredna Banka Zagreb (PBZ) has been one of the leading banks in the Croatian banking sector ever since its establishment and is now part of Italy's Intesa Sanpaolo. PBZ now has more than 1.3 million retail and corporate clients and a network that includes more than 220 branches. The bank has been active in developing new products and plays a major role in financing the economy and the development of SMEs. In December 2006 PBZ acquired a controlling stake in LT Gospodarska Banka (LTG) in Bosnia and Herzegovina. Following the acquisition of UPI Banka by Intesa Sanpaolo in February 2006, LTG and UPI were merged in July 2007, giving Intesa Sanpaolo Group 77.17% of the total number of shares, of which Intesa Sanpaolo holds 58.22% and PBZ 18.95%. PBZ's profit before tax grew 18.6% in 2007 while net profit was 18.5% higher. The total assets of the PBZ Group increased 8.6% during the year.

Bozo Prka, president

www.pbz.hr

CZECH REPUBLIC

Ceskoslovenská Obchodni

Ceskoslovenská Obchodni (CSOB) operates in both the Czech Republic and Slovakia and is the largest bank in Central Europe, measured by total value of assets. In June 2007 Belgium's KBC Bank acquired full control of CSOB following sales by the remaining shareholders in the bank. CSOB represents a sizable component of KBC's value: When KBC took control, CSOB represented about 20% of KBC's market capitalization. CSOB Group recorded a 22% increase in net profit in 2007 while assets under management rose by 21% and lending by 26%. Despite strong business growth, CSOB's underlying operating expenses increased by only 3% as a result of strict cost controls. Meanwhile, the bank has continued to invest in innovations in the mortgage, credit and debit card and consumer banking market. CSOB's continuing strategy of multibranding and bancassurance appears to be working well.

* Pavel Kavánek, CEO

www.csob.cz

ESTONIA

Hansabank

Part of the Swedbank group since 2005, Hansabank is the largest financial institution in the Baltic region. After a recordbreaking third quarter, turbulence in the financial markets together with uncertainties in the Estonian real estate sector influenced the fourth-quarter results, and net income declined-a trend that is likely to continue in 2008 given slower lending growth, higher risk cost and a rising cost of funds. Hansabank has already instituted stricter lending policies in preparation for a worsening of credit quality in the economy as a whole, and lending growth fell from 32% at the end of the third quarter of 2007 to 25% for the final quarter. The bank's deposits grew by 15% to euro4.7 billion, with most of the growth coming from corporate clients. Despite the weaker outlook at the end of 2007, overall it was a strong year for the group: Net profit increased by 49% to euro484 million, ROE reached 29%, and the cost/income ratio was 41% in 2007-the latter two figures being all-time bests for the bank.

* Erkki Raasuke, chairman and CEO

www.hansa.ee

GEORGIA

Bank of Georgia

Bank of Georgia's total assets in 2007 grew by a whopping 146% to GEL2.9 billion ($2 million). Net loans and total deposits also increased by more than 140% on 2006 levels. Both net interest and non-interest income also posted healthy gains of 99% and 87% respectively. The bank's business may be expanding rapidly, but it managed to make a significant dent in its cost-to-income ratio, which declined from 56.7% in 2006 to 49.6% in 2007. In just two years it has also managed to significantly reduce its non-performing loan (NPL) ratio from 4.5% in 2005 to 1.5% in 2007. Bank of Georgia boasts the largest ATM network in the country and services a broad range of customer segments from retail banking through to corporate and investment banking.

* Irakli Gilauri, CEO

www.bog.ge

HUNGARY

OTP

OTP continues to be the largest bank in Hungary and has performed strongly in terms of growth, with an 11% increase in after-tax profit, although its otherwise excellent performance was hampered by the poor performance of its Serbian subsidiary. Overall, the group enjoyed annual volume growth, including a 28.8% year-on-year increase in gross loans and a 19% increase in deposits in the fourth quarter. Core banking activity in Hungary proved promising, with loans growing by 12.7% year-on-year in the full year while OTP Fund Management also managed to gain market share. However, if OTP is to retain its crown in future years, it will need to up its game. The group expects consolidated net profit to increase by at least 10%, but it has to be wary of changes in its domestic market. Its market share of total assets in Hungary in the financial year 2007 was almost flat while mortgage lending, consumer loans, retail deposits and corporate and municipal lending market share fell.

* Sándor Csanyi, chairman and CEO

www.otpbank.hu

LATVIA

SEB Banka

SEB Banka, which changed its name from SEB Unibanka on April 7 this year, is a leading bank in Latvia, servicing almost a quarter of all the Latvian residents' deposits and a fifth of Latvia's credit market as well as holding the leading position in the third-pillar pension system and life insurance services. The bank enjoyed a strong 2007 as a result of a prudent credit policy, the growing demand of the Latvian business community and population for savings and investment services, and the successful ongoing implementation of the SEB group business model. A steady rise in business volumes, efficiency and quality in 2007 resulted in an 81% increase in net profit. To be sure, this included profit from the sale of the bank's real estate, but even excluding this the bank's growth was 42% higher than in 2006. Increases in loans during the year of 19% nearly matched increases in deposits of 18%-setting the bank up comfortably for what is expected to be a slower growth rate, a more prudent economic development policy and weaker business activity and household spending in 2008.

* Ainars Ozols, president

www.seb.lv

LITHUANIA

SEB Bank

SEB Bank, which changed its name from SEB Vilniaus Bankas in January, is a market leader in Lithuania, with 1.6 million clients, a 39.2% market share of assets under management, 30.2% in deposits, 31.3% in loans, 42.4% in payment cards and a strong position in equity and bond brokerage and securities custody. The bank had a particularly successful year in 2007, with an increase in its customer service network to 72 branches, 250 new employees and a range of new services. Most important, SEB Bank was able to achieve this expansion-which included a 32.3% growth in assets-with an increase in its ROE from 21.1% in 2006 to 29.53% in 2007, a huge 74% increase in profit before tax and a 77% increase in net income. Shareholders' equity grew by 33% over the year.

* Audrius Ziugzda, president

www.seb.lt

MACEDONIA

Komercijalna Banka

In 2006, the last date for which results are available, Komercijalna Banka enjoyed its strongest year since its founding 51 years earlier. The bank achieved a gross profit a staggering 99% higher than in 2005-a record for the bank-while also improving its capital adequacy ratio to 11.8%, well above its goal of 8%. Meanwhile, return on equity was 18.5% and return on assets (ROA) 1.9%. The total resources of Komercijalna Banka increased 18% in 2006, with the most notable contributor to this growth being retail deposits, which increased 18%, and deposits from legal entities, largely corporates, which grew 25%. Corporate lending continued to grow during the year as the bank introduced new products and simplified procedures for loan approvals. The bank also made great strides in assessing its credit portfolio and credit risk.

* Hari Rostov, first general manager

www.kb.cotn.mk

MALTA

Bank of Valletta

Bank of Valletta retains its position as Malta's largest and most successful bank. In a November report on Bank of Valletta, Fitch Ratings said that its ratings reflect the bank's "position as the largest bank in Malta-its market share in deposits is 46% and loans 41%-its consistently sound profitability, satisfactory capitalization and liquidity, and reducing impaired loans." Bank ofValletta continues to benefit from the continuing recovery of the Maltese economy, helping to increase profitability in 2007. Operating profit rose 18% in 2007 on the back of dynamic loan growth and a favorable interest rate environment, which resulted in growing net interest revenue. The bank is also doing much internally to grow profit. Operating costs were tightly controlled and impairment charges minimal in 2007-falling from 7.4% at September 2006 to 4.8 % at the end of September 2007-while the bank grew its loan book by 12.5% during the year.

* Tonio Depasquale, CEO

www.bov.com

MOLDOVA

Moldova Agroindbank

In 2006, the last year for which figures are available, Moldova Agroindbank celebrated 15 years since its founding. The year was a difficult one for the Moldovan economy, with increased costs for natural gas and imported fuel products, as well as the blocking of external markets for Moldovan products, hampering growth. Nevertheless, Moldova Agroindbank was able to broaden its customer base, improve its product range and hugely boost the bank's earnings power. Moldova Agroindbank is the largest bank in Moldova, with 20.7% of local banking assets, 18.8% of total share equity and a market share of 23.5% for lending and 21.8% for deposits. Its performance in 2006 was unstoppable: Profit increased by an astounding 80.5% compared to 2005-reaching the highest level in the bank's history. Net interest income increased 49% while non-interest expenses, due to prudent administration and a program of centralization, were up only 26.2% compared with 2005. The increased income growth and relatively slower expenses growth led to a considerable improvement in the bank's cost/income ratio, which hit 48%-still high by international standards but a decrease of 10% compared with 2005.

* Natalia Vrabie, president

www.maib.md

POLAND

BPH

Following the merger of the vast majority of HVB-owned BPH with UniCredit-owned Bank Pekao at the end of November-following the parent banks' own merger-the new Bank Pekao is the largest bank in CEE in terms of market capitalization and the largest bank in Poland in terms of assets, credits, deposits and investment products. The new consolidated bank reported an increase in net profit of more than 20% and an increase in operating efficiency with an ROE of 23.7%. Surprisingly, it was the vastly smaller BPH-the assets of which were reduced by 80% following the absorption of much of the bank into Pekao-that looked most attractive in 2007 on a consolidated basis. BPH broke its records for its profitability and efficiency, with a total gross profit from continued and discontinued (merged with Pekao) operations 25% higher than in 2006 and a pre-tax ROE of nearly 30%. The break-up has not dented the bank's capital adequacy, which at the end of 2007 was 15.3% compared to 12.09% at the end of 2006. BPH's universal bank model remains a potent force in the Polish banking market, and its efforts to rebuild market share following the split are likely to be rigorous following the acquisition of UniCredit's stake by GE Capital.

* Józef Wancer, chairman

www.bph.pl

ROMANIA

BRD-Groupe Société Générale

BRD-Groupe Société Générale enjoyed another very strong year in 2007, with net banking income 42% higher, operating profit up 54% and net consolidated profit 36%) higher. Deposits grew 37%> in 2007 while loans increased by 50% as the bank's retail and corporate client base continued to swell. Despite a number of significant investments, general expenses have been well controlled while BRD's net cost of risk is one of the lowest in the banking system, with an on-balance-sheet credit risk rate of 2.77% versus 4.06% for the total banking system.

* Patrick Gelin, CEO

www.brd.ro

RUSSIA

Alfa Bank

Alfa Bank, which was founded in 1991, is now one of the largest privately owned banks in Russia. It is ranked fourth in terms of commercial loans and fifth by shareholder capital and assets. Among non-state-owned banks, it is ranked second after Bank of Moscow by assets. Its assets, as of the end of the first half of 2007, totaled $17.1 billion, while loans were $11.8 billion and shareholders' equity $1.7 billion. Moreover, Alfa Bank's strong market position is supported by strong financial ratios, with a return on equity of 15.4%, a capital adequacy ratio of 13.8% and NPL ratio of just 1.5%. The bank's strategy of aiming to become the benchmark of modern banking in Russia has resulted in a healthy results-oriented corporate culture while its superior technology base and emphasis on transparency marks it out among Russia's leading banks. And Alfa Bank's focus on three core businesses-corporate banking, retail banking and investment banking-has proved successful: It is ranked first among private banks for corporate lending, is the largest Russian privately owned bank by retail demand deposits and is a top-five Russian trader in equity and fixed income.

* Rushan Khvesyuk, chairman of the executive board and acting CEO

www.alfabank.com

SERBIA

Raiffeisen Banka

At first glance, Raiffeisen Banka s market share for corporate deposits of 14.98% in 2007 does not look that impressive. However, official figures do not represent realistic shares in the Serbian market but rather only locally financed portfolios. Raiffeisen, in order to provide top quality and attractively priced services to Serbian customers, uses RIEEF (Raiffeisen International Eastern Europe Finance) to provide cross-border financing. When RIEEF is included, Raiffeisen Banka is the market leader for loans, which grew 22% during the year. Other fast-growing areas of corporate business include documentary business products-such as letters of credits-that grew by 70% year-on-year. In consumer banking, Raiffeisen Banka's clients increased by 20% while its loan portfolio was enlarged by 26%) and deposits by 32%, giving it a market share for retail deposits of 14.46% and for retail loans of 12.5%. The overall effect of this broad growth was a 21% increase in total assets at Raiffeisen Banka, an increase in return on equity from 16.65%) in 2006 to 21.41% in 2007 and a 60.09% increase in net profit.

* Budimir Kostic, chairman

www.raiffeisenbank.co.yu

SLOVAKIA

Tatra Banka

Raiffeisen International-owned Tatra Banka offers a wide range of banking services for retail and business clients through its network of 152 business outlets-a number that expanded substantially in 2007. Tatra Banka was the first bank in Slovakia to separate private and corporate banking services, and, to ensure a more targeted service for medium-size companies, it has set up a network of corporate centers. The results have been impressive: Assets grew 21.15% in 2007 while market share increased from 13.1% in 2005 to 14.8% in 2006 and 15.39% at the end of 2007. Most important, Tatra Banka has been able to grow profitably: Profit increased 14.27% in 2007, and return on equity before tax increased from 25.12% in 2005 to 28.12%, in 2006 and 28.83% in 2007.

* Igor Vida, chairman of the managing board and CEO

www.tatrabanka.sk

SLOVENIA

Nova Ljubljanska Banka

Nova Ljubljanska Banka performed well in 2006, the last year for which figures are available. Profit before tax at NLB Group, of which the vast majority of business is Nova Ljubljanska Banka, was 47% higher than in 2005 while profit after tax at the bank itself was 59% higher than a year before. The group's operating income rose 18% in 2006, and net income increased 13%. Such figures were all the more impressive given the hurdles that Nova Ljubljanska Banka faced during the year. The bank had to cope with the continuing challenges associated with the transition to the euro (which took place at the start of 2007) and the introduction of the International Accounting Standardsboth of which required substantial investment in technology and the modernization of the bank's organizational structure.

* Marjan Karmar, president of the management board and CEO

www.nlb.si

TURKEY

Akbank

Akbank-which has been 20% owned by Citi since January 2007-had another outstanding year in 2007, with its total assets increasing 13% in the year to September. Much of its performance is due to strong loan growth, both in consumer and SME loans, which together represent 66% of total loans and provide high returns. In the consumer market Akbank has been innovative, with textmessage-based lending introduced in 2007 and dedicated consumer-lending outlets established. Overall, lending grew by 19% compared to the sector average of 17%, increasing Akbank's share of loans in total assets to 54% from 51%. In 2007 Akbank's non-performing loans were at a negligible level of 2.4%-lower than peer group and banking sector averages of 3.8% and 3.5%-and were fully provisioned. In addition, a 15% increase in deposits-which increased Akbank's market share of deposits from 11.1% to 11.8% and lowered the bank's cost of funds by 91 basis points-will give the bank a buffer. But as the Turkish economy comes under increasing pressure from the financial crisis, Akbank will need to take steps to ensure this huge loan book does not become problematic.

* Zafer Kurtul, president and CEO

www.akbank.com

UKRAINE

UkrSibbank

Ukraine's third-largest bank by assets, UkrSibbank is 51% owned by France's BNP Paribas. This relationship has been pivotal to UkrSibbank's success, with BNP Paribas providing advanced technology that has helped the bank increase the quality of retail services and expand the range of products offered. With 180,000 corporate and other non-retail accounts and more than 1 million retail customers, the bank is the second-largest Ukrainian bank by retail loans, the fourth-largest by corporate loans, the fifth-largest by corporate deposits and the sixth-largest by retail deposits. UkrSibbank is also the most active trader in municipal and corporate bonds in Ukraine. UkrSibbank s financial indicators have grown impressively in recent years: In 2007 total assets increased by more than $2 billion and doubled in 2006 compared to 2005. Also in 2007 the bank's profits increased by more than 4.5 times, primarily as a result of the expansion of its loan and deposit portfolios and a corresponding increase in interest income and fees and commissions charged to customers. At the same time, the bank has maintained a high level of capital adequacy, with a ratio of 14.2%-well above the National Bank of Ukraine's requirement of 10%.

* Oleksandr Adarich, chairman of the management board

www.ukrsibbank.com

-Laurence Neville

MIDDLE EAST

Regional Winner: Ahli United Bank

In keeping with its strategy of expanding in the Gulf and in other Arab countries, Bahrain-based AhIi United Bank entered Oman last year with the purchase of a 35% stake in Alliance Housing Bank. It also greatly boosted the profitability of its newly acquired Egyptian subsidiary. Ahli United Bank's earnings rose 42.8% to a record $296 million in 2007, while AhIi United Bank (Egypt) earned $27 million, or about 660 times more than in 2006. AUB's diversified risk-management strategy and careful control of costs is helping it sustain profits despite the inflationary environment in the region. The bank had $23 billion of assets at the end of 2007, an increase of 10.6% from a year earlier. A share-rights issue in December raised $374 million in proceeds. Besides Bahrain, Oman and Egypt, AUB operates in the United Kingdom, Kuwait, Qatar and Iraq. It is planning to expand into Saudi Arabia, the UAE, Iran and Switzerland as opportunities arise. The bank's shares are listed on the Bahrain and Kuwait stock exchanges. The International Finance Corporation joined in AUB's Omani acquisition by taking an equity stake of 9.9% in Alliance Housing Bank through participation in a capital increase. The Oman-based bank was later rebranded Ahlibank and is being operated by AUB under a five-year renewable management agreement.

Meanwhile, AUB has a network of 20 branches in Egypt, where it continues to make major investments to improve services. AUB allows Egyptian expatriates in certain Gulf countries to send remittances to Egypt for free and to bank with AUB Egypt through local facilities in the countries where they work. AUB was a mandated lead arranger of a $480 million syndicated debt-finance facility in February for Damietta International Port, which is developing a container terminal in Egypt that will be one of the largest trans-shipment facilities in the Mediterranean.

* Adel A. El-Labban, managing director

www.ahliunited.com

BAHRAIN

Ahli United Bank

Bahrain's largest publicly traded lender, AhIi United Bank increased its return on average equity (ROAE) to 18% in 2007 from 15.1% in 2006. AUB offers retail, commercial and investment banking, global fund management and private banking services. In addition to its 17 branches in Bahrain, AUB operates four Islamic branches, of which two are in Bahrain, one in the UK and one in Qatar. The bank plans to increase its Al Hilal Islamic business to 50 branches by 2010 and has applied to the Egyptian central bank for an Islamic license. The Al Hilal branches offer a comprehensive range of Shariah-compliant retail banking services. Last year AUB provided a $150 million murabaha financing for the Bahrain Bay Development project, a waterfront development on reclaimed land off the northern shore of Manama.

* Adel A. El-Labban, group CEO and managing director

www.ahliunited.com

EGYPT

Commercial International Bank (CIB)

Commercial International Bank (CIB), Egypt's largest private sector bank, posted an increase of 51% in earnings in 2007. CIB experienced expanding margins across all client segments last year, with the exception of large syndications in corporate banking, where competition is intense. Investor and consumer confidence in Egypt remains strong, and capital spending is increasing. The country's gross domestic product rose by 7.1% in 2007, and demand for banking services is rising. CIB is expanding its retail banking operations. It opened 19 new branches last year and plans to open an additional 24 branches in 2008. The bank has applied for a license in Algeria, where it plans to focus on corporate banking.

* Hisham Ezz Al-Arab, chairman and managing director

www.cibeg.com

JORDAN

Arab Bank

Arab Bank is one of the largest financial institutions in the world, with 400 branches in 28 countries on five continents. The bank operates in almost every Arab country and has a growing network in Europe. It won a tender in February to purchase 19% of Libya's AlWadha Bank, with an option to increase this stake to a controlling interest later. Arab Bank opened two new branches in Algeria this year. Turkey and Syria are two other new markets for the bank. In Jordan, Arab Bank has 77 branches and accounts for 27.5% of the banking assets of the country. Arab Bank has strong financial advisory credentials in corporate, project and structured finance and is a leader in providing contractor financing in the Middle East and North Africa.

*Abdel Hamid Shoman, chairman and CEO

www.arabbank.com.jo

KUWAIT

Gulf Bank

Gulf Bank, one of the largest commercial banks in Kuwait, with 42 branches, had an eighth consecutive year of record profits in 2007. Its earnings rose 23% from a year earlier to $490 million. The bank's assets grew by more than 25% last year to $18.5 billion. Gulf Bank is one of the most efficient banks in the Middle East, and it has a diversified revenue stream. The international banking group has emerged as an important source of business for Gulf Bank, which has extended its activities throughout the Gulf Cooperation Council (GCC) region. It is one of the highest-rated banks in the GCC and continues to invest in new products and distribution channels.

*Bassam Y. Alghanim, chairman and managing director

www.gulfbank.com.kw

LEBANON

BLOM Bank

BLOM Bank, Lebanon's most profitable bank, had growth in assets of 17% last year to $16.6 billion. It outperformed its peers in terms of return on assets (ROA) and return on equity (ROE).The bank's large capital base enables it to offer big-ticket financings. It recently provided $101 million of funding to Abdali Investment and Development for a major real estate project in downtown Amman, the capital of Jordan. BLOM Bank has 50 branches in Lebanon, with plans to open five more this year. It has a presence in 11 countries and is continuing its regional expansion. In Egypt, where it has 22 branches, it is planning to open another nine or 10 branches in 2008. BLOM Bank recently received a license for private and investment banking in Saudi Arabia. It has applied for a corporate banking license in Qatar. BLOM Bank France has applied for a license in Algeria.

* Saad Azhari, chairman and general manager

www.blom.com.lb

OMAN

BankMuscat

BankMuscat is Oman's largest lender, with a market share of 42% and 110 domestic branches. The bank's earnings rose 39.4% last year to about $219 million, while its assets rose 43% to $10.9 billion. BankMuscat launched its operations in Saudi Arabia last year. It also placed 15% of its capital with Dubai Financial Group. BankMuscat's stake in Centurion Bank of Punjab will convert into a minority holding in HDFC, one of India's largest banks, following the latter's acquisition of Centurion. BankMuscat in 2007 also finalized its acquisition of a 43% stake in Mangal Keshav, a securities firm based in India. BankMuscat also owns 49% of Bahrain-based Bank Muscat International, which has four branches and plans to expand regionally and internationally during the next three years.

* AbdulRazak AIi Issa, CEO

www.bankrnuscat.com

QATAR

Qatar National Bank

Qatar National Bank opened new branches in Kuwait, Oman and Yemen last year, along with representative offices in Libya and Singapore. QNB also acquired 30.5% of the Housing Bank for Trade and Finance, Jordan's second-largest bank, and agreed to establish a bank in Syria in which it will hold a 49% stake. Meanwhile, QNB is negotiating to acquire 50% of the shares in Tunisian-Qatari Bank, based in Tunisia. It also has obtained preliminary approval to open in Sudan and was issued a license to operate in Mauritania. QNB, Qatar's largest bank, also is seeking approval to open an investment bank, QNB Capital, at the Qatar Financial Center. QNB's earnings rose 25.5% last year to $690 million, and its assets rose 59.6% to $31.5 billion. Earnings of its Islamic banking organization, QNB Al Islami, rose 97.5%.

* Ali Sharif Al-Emadi, CEO

www.qatarbank.com

SAUDI ARABIA

Samba Financial Group

Samba Financial Group is a leader in all customer segments in retail and commercial banking in Saudi Arabia. It expanded into Pakistan last year, with the acquisition of Crescent Commercial Bank, and is about to open its first branch in Dubai. It also created Sambacapital, an investment banking and securities subsidiary. Samba is the largest provider of corporate banking services in the country. The bank was financial adviser and mandated lead arranger of the largest Islamic finance deal ever, the $2.87 billion project financing for Mobily, Saudi Arabia's leading mobile operator. In 2007 Samba led 85% of the debt financings concluded in Saudi Arabia.

* Eisa Al-Eisa, managing director and CEO

www.samba.com

SYRIA

Bank Audi Syria

Bank Audi Syria, which is 47%-owned by Lebanon-based Bank Audi, launched the first international credit card in Syria last year, in cooperation with Visa International. The Damascus-based bank, established in 2005 as a Syrian joint stock company, is rapidly expanding its retail and commercial banking services. It already has 10 branches in Syria and plans to have 22 branches in operation by the end of 2008. Bank Audi Syria is targeting companies in the industrial and retail sectors of the economy. It is one of the first private banks to operate in Syria in 40 years.

* Bassel Hamwi, deputy chairman and general manager

www.banqueaudi.com

UNITED ARAB EMIRATES

Emirates NBD

Emirates NBD, the biggest bank by assets in the Gulf Cooperation Council, was created through the merger of Emirates Bank International and National Bank of Dubai. It is 56%-owned by the Dubai government. The bank's earnings rose 35% last year to $1.1 billion, and its assets increased 53% to $69.1 billion. Besides its 114 branches in the UAE, the group has a presence in Saudi Arabia, Qatar, the United Kingdom and the Channel Islands and representative offices in India, Iran and Singapore. It has a fast-growing Islamic banking operation and is a market leader across all core business lines, including retail banking, corporate banking, private banking, investment banking and stock broking. It has a market share of about one-fifth of corporate loans.

* Rick Pudner, CEO

www.emiratesnbd.com

YEMEN

Arab Bank Yemen

Arab Bank, one of the Arab world's largest banks, has been operating in Yemen since 1972 and was the first to introduce ATMs and other modern banking services in the country. With a fast-growing population of more than 22 million. Yemen offers significant opportunities for growth in banking services. The country is attracting billions of dollars in investments in real estate and tourism projects from developers based in the Gulf. Arab Bank has 10 branches in Yemen's main cities and is about to open a new branch in Ibb province. Yemen is concentrating on increasing growth in the non-oil sector of the economy as its oil production declines.

* Omer Ibrahim al-Suos, director

www.arabbank.com.ye

-Gordon Platt

ASIA

Regional Winner: HSBC

Despite increasing competition from foreign banking providers and local banks, HSBC's longevity in the Asia-Pacific region and its ongoing commitment and investment continues to stand it in good stead. It was among the first foreign banks to incorporate in China, where it recorded a record pre-tax profit of more than $1 billion in 2007. In the rest of Asia-Pacific, pre-tax profits in 2007 were $6 billion, an increase of almost 25% on 2006 levels. In early April HSBC announced that it would open an additional 27 branches in China this year. It is also expanding its presence in South Korea, agreeing in September last year to acquire a 51% stake in Korea Exchange Bank, Korea's sixth-largest bank. It has also embarked on a key strategic acquisition in the Taiwanese market, agreeing to acquire 100% of Chailease Credit Services, a leading factoring company. It continues to make its presence felt in other Asian markets such as Vietnam, where it became the first foreign bank to receive approval for a 15% investment in Techombank, Vietnam's third-largest bank.

* Stephen Green, group chairman

www.hsbc.com

ARMENIA

HSBC Armenia

The first international bank to establish a presence in Armenia in 1996, HSBC Armenia is a consistently strong performer on the earnings front, with net interest and fee and commission income posting healthy gains. In the 12 months to the end of 2007, net interest income increased from AMD4.6 billion ($15 million) in 2006 to approximately AMD6 billion. In the same period, fee and commission income increased from AMD 1.4 billion to AMD1.7 billion. Overall net profit for 2007 was AMD3.3 billion. HSBC Armenia is a joint venture between the HSBC Group, which holds a 70% stake, and overseas Armenian businesses. In the past 12 months the bank has expanded its branch and ATM coverage. It provides a full range of commercial and consumer banking services.

Timothy Slater, CEO

www.hsbc.am

AZERBAIJAN

International Bank of Azerbaijan

International Bank of Azerbaijan is one of Azerbaijan's major banks with strong government backing. In September Fitch Ratings upgraded IBA's credit rating from BB to BB+ based on its "growing importance" in the country's banking system. Return on equity (ROE) in 2007 was a healthy 23.29%. The bank continues to expand its electronic footprint, making it easier for customers to access its services via an ever-expanding inventory of automated teller machines (ATMs) and information booths, as well as Internet banking and mobile phone banking. At the beginning of 2007 IBA boasted more than 500 ATMs, more than 1,100 point-of-sale (POS) terminals and 100 payment-information kiosks. Its customer base includes 64,000 corporate customers-its core business segment-and more than 550,000 individual customers. IBA also has operations in Moscow, Georgia, London and Frankfurt.

* Hajiyev Jahangir Fevzi, chairman

www.ibar.az

BANGLADESH

Janata Bank

Bangladesh's second-largest commetcial bank boasts a considerable branch network, with more than 840 branches, including overseas branches in the UAE. The bank has total assets of almost $1.9 billion and paid up capital of $47.16 million. Janata has a strong Internet banking technology focus and is a leading provider of card payment products, including debit and credit cards. It is also a major financing provider in the areas of microcredit and software development and lending to the small and medium-size enterprise (SME) sector.

* S. M. Aminur Rahman, CEO

www.janatabank-bd.com

CHINA

Industrial & Commercial Bank of China

As the largest commercial bank in China, ICBC has more assets and higher levels of profitability than its competitors, particularly when it comes to net fee and commission income, which increased by more than 100% from year-end 2006. Net profit in 2007 reached more than RMB80 billion ($11.4 billion), constituting growth of 60%. Total assets increased by more than 15% to more than RMB8.6 trillion. ICBC claims to be the number-one bank in China in terms of its share of customer deposits (17.3%) and loans (14.7%). Non-performing loans (NPLs) are also on a downward trajectory from 3.79% in 2006 to 3.06% at the end of September 2007. ICBC boasts a substantial customer base of more than 2.7 million corporate customers, including leading Chinese companies and multinationals. However, its focus is not just on the Chinese market. ICBC also has equity stakes in South Africa's Standard Bank, a controlling stake in Indonesia's Halim Bank and an 80% stake in Macau's Seng Heng bank, which is also a Global Finance award winner.

* Yang Kaisheng, president

www.icbc.com.cn

INDIA

HDFC Bank

The Indian banking market is witnessing intensified competition from nonindigenous providers, yet local banks continue to hold their own. HDFC's recent merger with Centurion Bank of Punjab, billed as the largest merger among India's private sector banks, will give it a much larger branch network than its closest competitor, ICICI. The newly merged entity will have a national network of more than 1,140 branches, a deposit base totaling INR1.2 trillion ($30 billion) and a total balance sheet worth more than INR1.5 trillion ($37 billion). HDFC, which considers itself to be a leader in the areas of retail and wholesale banking, is a key proponent of a "multi-channel" strategy, which provides customers with a wealth of channels (Internet, ATMs, phone and mobile banking) for interacting with the bank.

* Deepak Parekh, chairman

* Aditya Puri, managing director

www.hdfcbank.com

INDONESIA

Bank Danamon

Danamon experienced growth across all customer segments in 2007, which boosted net profits by 75% in the first nine months of 2007 to IDR1.6 trillion ($17 billion). Total loans increased 22% on 2006 levels to reach IDR50.2 trillion ($5.4 billion). Although operating experiences increased, the bank managed to keep its cost-to-income ratio relatively low at 46.8%. Gross NPLs continued to decline from 3.5% to 2.8%. In 2007 Danamon was one of the local banks that saw its ratings upgraded by ratings agency Fitch on the back of its improved financial position and asset quality.

* J.E. Sebastian Parades, president director

www.danamon.co.id

KAZAKHSTAN

BTA Bank

Despite concerns by rating agencies over local banks' dependence on international capital markets for long-term funding, a market that has been choked off in recent months, BTA Bank's consolidated assets increased by 47.4% to $24.1 billion from December 2006 to October 2007, according to preliminary financial data. Net income reached $492 million, exceeding net income for the whole of 2006 by 60%. In the first nine months of 2007, loans to customers increased by 76% on the previous year to $18.7 billion. Formerly known as BankTuranAlem, the bank rebranded as BTA Bank in November. It is expanding its activities in the Commonwealth of Independent States (CIS) region and also has representative offices in the UAE and China.

* Roman Solodchenko, chairman

www.bta.kz

KYRGYZ REPUBLIC

AsiaUniversalBank

In terms of assets and deposits, AUB is the largest banking provider in the Kyrgyz Republic. At the start of 2008, the bank's total assets were KGS6.3 billion ($173 million). Boasting representative offices in neighboring Baltic and CIS countries, AUB has built on its achievements in the corporate banking space by successfully expanding into retail banking and becoming a leading mortgage provider. It also hopes to become a major lender in the automotive sector. It is expanding its geographical footprint both within and outside the country and plans to open a new representative office in China by the end of the year. Net interest income increased from KGS115 million ($3 million) to KGS249 million ($7 million) from 2006 to 2007. Net profit for the year ended December 31, 2007, increased 48% on the previous year to approximately $6 million.

* Nurdin Abdrazakov, CEO

www.aub.com

MACAU

Seng Heng Bank

Significant changes are afoot in the Macau banking market, with Chinese banks making further inroads into the market. Following Bank of China's foray into the market, ICBC acquired an 80% stake in Seng Heng Bank. The remaining 20% of shares will be held by Seng Heng's CEO, Patrick Huen. Seng Heng is the second-largest private bank in Macau, with assets totaling more than $3 billion. It has also been instrumental in forging links with Portugal by opening a representative office there to capture a share of the cross-border business between China and Portuguese-speaking countries. It also helped establish the Macau Finance Center, which aims to provide a one-stop shop for financial services including fund management, investment banking and private equity.

* Patrick Huen, CEO

www.senghengbank.com

MALAYSIA

Maybank

Maybank's profit after tax for 2007 reached MYR3 billion ($955 million). The bank's total assets increased from MYR 197.1 billion ($62 billion) in 2006 to MYR227.4 billion at the end of 2007. Maybank is the largest bank in Malaysia, with 360 domestic branches. It also boasts operations in Brunei, Singapore and the Philippines. Beyond its core banking business it also has interests in insurance and Islamic banking under the auspices of a new banking subsidiary, Maybank Islamic Berhad (MIB). It recently announced its acquisition of a 100% stake in Sorak Financial Holdings, which will give it a controlling shareholding of Bank Internasional Indonesia, which is the country's sixth-largest bank by assets.

* Dato' Aminuddin Md Desa, acting CEO

www.maybank2u.com

MONGOLIA

Khan Bank

Khan Bank continues to outperform its peers across most key financial indicators. In 2007 total assets of the bank grew by more than 73% to $513 million, and total deposits increased by more than 76% to $450 million. ROE was a hefty 45.93%, the highest among Mongolian banks. The bank's loan portfolio increased by 102%, but in spite of such rapid growth the bank managed to keep problem or nonperforming loans to a minimum, with its NPL ratio decreasing from 1.95% to 1.09%. Net earnings for 2007 were $16.6 million, an increase of 62% on 2006 levels.The bank has made significant inroads on the electronic banking front with the launch of Internet and mobile banking and development of the largest ATM network in Mongolia. In November it opened a representative office in the Republic of Korea and is working closely with Korean banks in the area of remittances from Mongolians working abroad.

* J. Peter Morrow, CEO

www.khanbank.com

PAKISTAN

Habib Bank

Toward the end of last year, negative developments in Pakistan's political climate, which resulted in emergency rule, saw local banks' long-term foreign currency deposit ratings placed on negative watch by Moody's. Habib Bank, Pakistan's largest bank, with an extensive branch network and deposits, focused on improving its lending performance by targeting medium-size companies and consumer finance. By focusing on its loan portfolio, it managed to reduce bad loans to 5.6%. In November it expanded its product mix to include credit cards. It has a 55% market share of inward foreign remittances and boasts a wide geographical footprint, including offices in the United States, Singapore, Belgium and the Netherlands.

* R. Zakir Mahmood, president and CEO

www.habibbankltd.com

PHILIPPINES

Bank of the Philippine Islands

Last year saw BPI make a serious commitment to expanding its business in Europe, with the opening of BPI Europe in London, which will act as the bank s EU gateway. The banks ambition is to build on its existing remittance offices by opening branches in most major European cities. In the Philippines it boasts a 22% market share of the remittance business. The bank has a well-diversified loan portfolio, with 33% comprising consumer lending, 40% loans to major corporates and the remainder targeting the SME sector, which saw loan activity increase by 20%. The bank has upgraded its Internet and mobile banking platforms to handle increased transaction volumes. It also boasts the largest ATM network in the country. Total assets of the bank were PHP634 billion ($15.3 billion) as of December 2007, constituting growth of 9% on 2006 levels. Net income increased by 9% to PHP10 billion.

* Aurelio R. Montinola III, president

www.bpi.com

SOUTH KOREA

Shinhan Bank

While the sale of Korea Exchange Bank continues to face legal hurdles, Shinhan is already well advanced on the road to consolidation, having successfully integrated Chohung Bank, which it acquired in 2003. The acquisition gave it an expanded branch network of more than 1,000 domestic branches, making it the second-largest bank. ROE has been at historically higher levels than other providers in the market. As of year-end 2007, total assets of the bank stood at KRW275 trillion ($283 billion), with loan growth and its acquisition of LG Card boosting the total. Loans to SMEs increased by 32.3% in 2007. Net income in 2007 surpassed KRW2 trillion for the first time in the group's history, constituting a 30.8% increase on the previous year.

* Sang Hoon Shin, president and CEO

www.shinhan.com

SRI LANKA

Commercial Bank of Ceylon

In 2007 Commercial Bank of Ceylon saw its total assets grow by more than 19% to LKR268.4 billion ($2.5 billion). Its cost-to-income ratio (46%) and NPL ratio (3.37%) were also much lower than those of its closest competitor. Profit after tax increased by more than 100% from 2006 to LKR4.2 billion. More than 13% of the bank's pre-tax profit came from its Bangladesh operations, which include nine branches. It also continues to expand its branch and ATM network in Sri Lanka, with 167 physical branches and 291 ATMs, and is looking to capture a greater share of the international remittances market in both Sri Lanka and Bangladesh.

* A.L. Gooneratne, managing director

www.combank.lk

TAIWAN

Chinatrust Commercial Bank

The past couple of years saw CTCB enhance its service levels to better service SMEs and larger companies looking to do business cross-border. Its international corporate banking business is focused on establishing a niche in the syndicated loan market. Pre-tax profit for the bank as of February was NT1.52 billion ($50 million). The bank boasts a strong domestic network comprising 111 branches and has more than 70 overseas locations. Its particular strengths include trade finance, cash management and custody. It provides a single platform for corporate customers to manage their accounts, and its Internet banking platform provides real-time account information. It also rates high in terms of customer satisfaction among its cash management clients.

* Jeffrey L.S. Koo, chairman

www.chinatrust.com.tw

THAILAND

Siam Commercial Bank

In spite of threats to profitability from higher loan loss provisions and subdued economic activity as a result of the 2006 coup, Siam Commercial Bank continued to perform strongly. Compared to its peers, it has a lower level of non-performing loans and a more extensive branch and ATM network, which will become increasingly important as the competitive stakes are raised in the consumer lending space. In 2007 Siam Commercial Bank had the highest loan growth, at 16%. The bank's total assets increased by 13% in 2007 to THB 1.2 billion ($38 million). Total deposits grew by 7.3% on 2006 levels to THB850 million. Asset quality also improved, with gross NPLs declining by 8.7%. Net profit in 2007 increased by 31% to THB17.4 billion. ROE at 16.5% was also higher than its competitors.

*Khunying Jada Wattanasiritham, president, CEO and director

www.scb.co.th d

UZBEKISTAN

Credit-Standard Bank

Credit-Standard Bank has shored up profitability in recent years. In 2006 the bank's net profit reached $4.7 million, a 40% increase on 2005 levels. The bank offers retail, corporate and investment banking products with a strong focus on money transfer and consumer credit. It has also been quick to adopt the latest technologies, including SMS banking. While not the largest of Uzbeki banks in terms of assets and deposits, given that the private commercial bank only received its banking license in 2003 it has achieved remarkable growth in a short period of time. In recent years the bank has posted growth of more than 200% in assets and net loans and has outperformed other banks in terms of growth in net profits and return on assets and equity. Interbank rating agency Akhbor rated the bank highly in terms of financial activity, liquidity and reliability.

* Mukhamedjanov Kamoliddin Anvarovich, chairman

www.credit-standard.uz

VIETNAM

Sacombank

Vietnam's sixth-largest bank is opening its first office in China as it looks to capture a share of cross-border payments traffic between the two countries. The partly foreign-owned bank, whose shareholders include the IFC, Dragon Capital and Australia's ANZ Bank, recorded the highest asset growth of its 16 years of operation in 2007, with assets rising to $4.2 billion. The bank's charter capital increased by 113% on 2006 levels to $297 million, and 2007 saw pre-tax profits jump 167% on 2006 levels to $96.8 million. Non-interest income, including fee, forex and equity-based income, leapt a whopping 266% to $78 million. Lending activity also posted some healthy gains, increasing 136% to $2.3 billion, with the bulk of the growth coming from individual lending as the bank looks to shore up consumer lending activity. Domestically, Sacombank continues to expand its ATM network and boasts the largest distribution network among private banks.

* Phan Bich Van, CEO

www.sacombank.com

-Anita Hawser

LATIN AMERICA

Regional Winner: Santander

Since opening its first Latin American office in 1947 in Havana and establishing a Latin American department in 1956, Santander has consolidated its position as one of the leading financial franchises in Latin America. Its operations in Brazil, Mexico, Chile, Argentina, Puerto Rico, Venezuela and Colombia contributed $3.65 billion in net attributable income to the bank last year, for a 27% increase over 2006. Santander manages more than $300 billion in business volumes in Latin America, including loans, deposits, mutual funds, pension funds and managed funds. Of the group's more than 131,000 employees, more than 65,000 are located in Latin America, where Santander increased its branch network from 4,368 in 2006 to 4,498 in 2007. Its efficiency ratio in Latin America was 41.8% last year, with a return on eguity of 29.1%.

* Emilio Botin, chairman

www.santander.com

ARGENTINA

Banco Macro

Macro is 100% Argentine-controlled and is one of the country's most profitable banks. It has posted profits for more than 20 consecutive quarters. Assets topped $6 billion in 2007, when return on equity (ROE) was 20.2% and return on assets (ROA) was 2.8%. Personal loans grew by an annualized 124% in 2007. Last year Macro completed a merger with Nuevo Banco Suquia, a local bank acquired in 2004. With 427 branches, Macro operates Argentina's largest branch network, with a strong focus on under-served regions outside Buenos Aires. Its corporate social responsibility (CSR) program supports an orphanage, youth scholarship programs and community healthcare.

* Jorge Horacio Brito, chairman

www.macro.com.ar

BARBADOS

FirstCaribbean International

With assets of $11.85 billion, Barbados-based FirstCaribbean is the largest regionally listed bank in the English-speaking Caribbean. The bank was established in 2002 through the merger of CIBC's and Barclays' Caribbean operations. Its A- S&P rating is the highest of any commercial bank in the Caribbean Community. It operates more than 100 branches servicing more than 800,000 accounts. In 2007 FirstCaribbean penned a strategic alliance with the Bank of Scotland to develop commercial opportunities in the energy sector. The bank dedicates 1% of its prior year pre-tax profits to community causes through the FirstCaribbean International Comtrust Foundation.

* Charles Pink, CEO

www.firstcaribbeanbank.com

BELIZE

Belize Bank

Founded in 1902 as the Bank of British Honduras, Belize Bank is the largest full-service commercial bank in Belize and the Central American country's oldest continuously functioning banking operation. It enjoys a 50% market share of the country's banking business, with a 45% share of loans and 60% share of credit card merchant services. Its clients are serviced through Belize's largest branch network. The bank has Belize's only automated redundant telecorn failover system. It also operates a subsidiary in the Turks and Caicos Islands since 2000 and is currently assessing growth opportunities in other Central American and Caribbean markets.

* Philip Johnson, president

www.belizebank.com

BOLIVIA

Banco de Crédito de Bolivia

Multinational companies in Bolivia still look to Banco de Crédite de Bolivia (BCB) to handle their corporate finance, international trade, treasury and cash management needs. BCB also gets high marks from its consumer banking clients. A wholly owned subsidiary of Peru's Banco de Crédito del Perú, part of the broader Credicorp financial group, BCB is ranked third in terms of assets and deposits among Bolivian banks. In 2007 assets were $832 million, up from 2006's $650.5 million. BCB operates the largest branch (45 branches) and ATM (125 units) network in Bolivia and is a technology pioneer in the country's banking sector.

* Gianfranco Ferrari, CEO

www.bancodecredito.com.bo

BRAZIL

Banco Itaú

Banco Itau's growth rate makes it a virtual Brazilian juggernaut. Its total assets soared 40.6% year-on-year in 2007 to $122.6 billion, while market capitalization rose 20.2% to nearly $65 billion. The bank remains a clear market leader in the automotive loan and credit card segments, with 21.5% and 22.3% market shares, respectively. Last year Itaú acquired BankBoston's operations in Chile and Uruguay, having purchased the US bank's Brazilian operations in 2006. Itaú also operates in Argentina. S&P and Fitch upgraded the bank to investment grade last year. Itaú remains Brazil's most valuable brand name, according to studies by consultancy Interbrand.

* Roberto Egydio Setubal, CEO

www.itau.com.br

CHILE

Banco Santander Chile

Santander Chile's 36.5% efficiency ratio in 2007 (versus 39% in 2006) was the best among top Chilean banks. The local subsidiary of Spain's Santander group holds the number-one spot in every market segment and product, except for a number-two ranking in asset management. With $21.8 billion in deposits in 2007, it held a 21.3% market share of total deposits, while $27.2 billion in loans gave it a 21.1% share of the loan market. Its share of the credit card market rose to 36% last year. In 2007 Santander Chile posted record profit of $624 million, an 8.1% year-on-year increase.

* Oscar von Chrismar, CEO

www.santandersantiago.cl

COLOMBIA

Bancolombia

Bancolombia traces its roots to the 1875 establishment of Banco de Colombia. Today it is the South American country's largest commercial bank and one of its most profitable. Its net income rose 31% year-on-year in 2007 to a record $597 million. Total assets rose 24% year-on-year to $18.2 billion. Bancolombia's clients are serviced through 719 traditional branches, 240 mobile branches and 1,662 ATMs. Its broad market presence gives it an 18.7% market share of total deposits, 21.5% of net loans, 19.4% of savings and 22.3% of checking accounts. In 2007 Bancolombia acquired 100% of outstanding shares of El Salvador's Banco Agrícola.

* Jorge Londoño Saldarriaga, president

www.grupobancolombia.com

COSTA RICA

Scotiabank Costa Rica

Following its September 2006 acquisition of Interim, until then ranked as Costa Rica's largest financial institution, Scotiabank's local subsidiary has itself soared to the top spot among local banks. Its assets were $1.4 billion through October, up from $1.27 billion through October 2006. Scotiabank Costa Rica operates in the high-end retail and commercial banking segments, where it maintains strong leadership positions. Its leasing subsidiary is the largest in Central America. The bank operates 42 branches in all seven Costa Rican provinces, with future branch expansion to be focused on rural areas with growing tourism and real estate development markets.

* Rick Waugh, president and CEO

www.scotiabankcr.com

DOMINICAN REPUBLIC

Banco Popular Dominicano

Banco Popular Dominicano (BPD) was founded in 1963 to service mainly small companies and farmers. Today it is the largest Dominican bank, offering a full portfolio of products and services. Its total assets were $3.7 billion in 2007 (from $3.2 billion in 2006). BPD services its clients through 183 branches and more than 500 ATMs and operates BPD Bank in the United States and Popular Bank Cayman in the Cayman Islands. Emerging nearly unscathed from a 2003-2004 banking sector crisis, BPD saw its risk rating raised by Fitch to AA- last year, the highest-ever rating for any Dominican bank.

* Manuel A. Grullón, chairman and CEO

www.bpd.com.do

ECUADOR

Banco Pichincha

Banco Pichincha remains at the top of the Ecuadorian banking sector, despite a challenging operating environment. Its total assets were $3.55 billion at December 2007, up from $2.35 billion posted at end-2006. BankWatch Ratings and Pacific Credit Rating both rate Pichincha at AA+, the highest rating for any Ecuadorian bank. The bank operates 279 branches and 627 ATM units, the largest such networks in the country. Its subsidiaries include microfinance, fund management, brokerage, auto finance, insurance and warehousing divisions. Pichincha's CSR program is focused on health and education activities and is managed through an alliance with the local Fundación Crisfe.

* Aurelio F. Pozo Crespo, CEO

www.pichincha.com

EL SALVADOR

Banco Agrícola

Founded in 1955 with the slogan "A Progressive Bank Serving a Progressive Nation," Banco Agrícola operates in El Salvador, Central America's only investment-grade-rated market. Now owned by Colombia's Bancolombia financial group, the Central American bank's assets rose to $3.6 billion in 2007 from $3.3 billion in 2006, allowing it to maintain its ranking as the country's largest private bank. It is not only big but also profitable. The bank's net profit rose to $70.9 million last year from $61.7 million the year before. Banco Agrícola's extensive CSR program supports mainly environmental, cultural and disaster relief activities throughout El Salvador.

* Sergio Restrepo Isaza, president

www.bancoagricola.com

GUATEMALA

Banco Agromercantil

Although a newcomer to the Guatemalan banking sector, Banco Agromercantil, founded in 2000, continues to post the highest profitability ratios among the country's largest private banks. ROE was 20% and ROA 1.6% last year, when net profit was up 18.5%. Its total assets rose 21.1% year-on-year in 2007 to $1.17 billion, while deposits grew 19.7% to $884.6 million. While Agromercantil expanded its branch network by 33% year-on-year in 2007 to 194 branches, it expects to boost the number to 400 within four years. In 2007 the bank acquired Corpobanco, another local bank, to become Guatemala's fourth-largest bank by assets.

* Rafael Viejo, general manager

www.agromercantil.com.gt

HONDURAS

Banco Atlántida

Tegucigalpa-based Banco Atlántida continues to seek ways to turn Honduras's unbanked population into clients, serviced through the bank's network of 145 branches nationwide. In 2007 Banco Atlántida set up electronic terminals operated by small business owners in pharmacies, grocery stores and other retail outlets in rural communities generally not served by bank branches. It also launched new savings accounts for Hondurans who receive remittances from relatives residing abroad. As part of an ongoing effort to enter new market segments, the bank also signed a partnership accord with Wells Fargo for the US company to offer factoring services and trade financing.

* Guillermo Bueso Anduray, president

www.bancatlan.hn

JAMAICA

Scotiabank Jamaica

Scotiabank's Jamaican subsidiary posted a 31.67% year-on-year rise in total assets in 2007, when ROE was 24.1%. At September 2007 the bank held a hefty 39.88% and 36.62% market share of total deposits and total loans, respectively. Scotiabank Jamaica operates 39 branches and 176 ATMs, with many of the latter units able to dispense both Jamaican and US dollars. The bank launched a small and medium enterprises (SME) unit to offer financing services to the growing market segment. It also works closely with the country's University of Technology to support the development of SMEs into larger companies through entrepreneurship initiatives.

* William E. Clarke, president and CEO

www.jamaica.scotiabank.com

MEXICO

Banamex Citigroup

If you're in a city that doesn't have a Banamex branch, then you are definitely not in Mexico. Banamex operates more than 1,450 branches and 5,800 ATMs. Last year it established a strategic alliance with major Mexican retailer Soriana to open a new financial institution that will offer savings and loan products through some 2,400 supermarkets in 112 Mexican cities. It also launched fully automated branches, allowing clients to carry out electronic transactions not available through traditional ATMs. Founded in 1884 and acquired by Citi in 2001, Banamex held assets of $56.3 billion at end2007, up from $53 billion a year earlier.

* Enrique Zorrilla Fullaondo, CEO

www.banamex.com

PANAMA

Banco General

When Banco General merged with competitor Banco Continental in 2007, it became the largest Panamanian-owned financial institution. The merger increased total assets by 106% to $7.3 billion. Earnings were $115.3 million in 2007, a 37.5% year-on-year increase. Return on average equity (ROAE) was 19.29%, and return on average assets (ROAA) was 2.42%. The bank, an important mortgage lender amid Panama's recent real estate boom, has a 22.8% share of the loan market and a 27% share of deposits. It also operates a general license bank in Costa Rica and has representative offices in five other Latin American countries. Fitch and S&P reaffirmed Banco General's investment-grade rating in 2007.

* Rafael Alemán Zubieta, CEO

www.bgeneral.com

PARAGUAY

Interbanco

Interbanco is a big fish in a small pond. Owned by Brazil's Unibanco banking giant, it is the largest private bank in Paraguay. Established in 1978, Interbanco operates more than 100 ATMs and 22 branches nationwide, offering products and services in all market segments. A local technology pioneer, it was the first bank to offer phone and Internet banking in the South American nation. It is also the country's only issuer of American Express cards. In 2007 it acquired Citi's Paraguayan credit and debit card portfolio for $30 million, as well as the credit card business of state-intervened bank Multibanco.

* Claudio Takashi Yamaguti, president

www.interbanco.com.py

PERU

BBVA Banco Continental

In a move to deepen the country's domestic capital market, Spanish banking group BBVA's Peruvian subsidiary launched Peru's first-ever residential mortgage-backed securities in 2007, with a $25 million deal from a $100 million authorized program. Demand for the debut transaction, which had a partial guarantee from the Inter-American Development Bank, hit $42 million. The bank, which has a 22.1% market share of deposits and 25.4% of loans, had a return on equity of 34.2% and return on assets of 2.8% in 2007. Net profit rose 21.5% year-on-year in 2007 to reach $220.5 million. BBVA Banco Continental had a network of 198 branches at end-2007.

* Eduardo Torres-Llosa, CEO

www.bbvabancocontinental.com

PUERTO RICO

Banco Santander Puerto Rico

With Puerto Rico immersed in an economic recession since 2006, it may be easier to find a snowflake than a profitable bank on the tropical island. Yet Santander Puerto Rico has successfully implemented a strategy to promote efficiencies and safeguard profitability, including the sell-off of its merchant business and merger of its mortgage subsidiary with the bank. Santander BanCorp, the bank's local holding, had assets of $9.3 billion though September 2007, up slightly from $9.2 billion a year earlier, driven mainly by a 4.6% rise in loan growth.The holding's efficiency ratio (tax equivalent basis) at September 2007 was 65.59%.

* José R. González, president and CEO

www.santandernet.com

TRINIDAD & TOBAGO

Republic Bank

Republic Bank is so concerned with customer service that it wants to treat its clients as at a fine hotel. In 2007 it achieved a "Service Excellence Organization" designation from the Ontario Tourism Education Corporation, and 89% of its staff has been trained under the hospitality-based program. In 2007 the bank also launched RepublicOnline, an Internet banking suite, as part of an IT upgrade effort. Republic Bank Group posted a 6.56% year-on-year rise in assets to $5.9 billion in 2007, when net profit rose by a whopping 109.67% to $211.3 million. The bank operates subsidiaries in Grenada, Barbados and Guyana.

* David J. Dulal-Whiteway, managing director

www.republictt.com

URUGUAY

ABN AMRO Uruguay

ABN AMRO arrived in Uruguay as Banco Holandés Unido in 1952 and has since grown to become the Southern Cone nation's most well-run bank, emerging from Uruguay's 2002 financial crisis unscathed. The Dutch bank's local subsidiary reported total assets of $1.6 billion in 2007 ($1.3 billion in 2006). While clients can use the bank's 18 branches, they can also tap into ABN AMRO's global know-how and relationships, which include an international network present in 70 countries. ABN AMRO Uruguay published its first Sustainability Report in 2007, highlighting its work in the areas of education, health, poverty reduction and the environment.

* Ricardo Ratazzi, CEO

www.abnamro.com.uy

VENEZUELA

BBVA Banco Provincial

Venezuela's oil sector windfall is sending local consumers on a spending spree, and BBVA Banco Provincial is there to extend credit for them. The bank reported a 92% jump in credit cards and vehicle loans last year, holding a 32% share of the auto loan market. Its more than 2 million clients are paying on time, driving the bank's nonperforming loans index to 0.89%. Having made an asset switch from investment securities to loans, its loan portfolio rose from 46% of total assets in 2006 to 62% in 2007. The move spiked intermediation margins to 79% at end-2007.

* Pedro Rodriguez Serrano, executive president

www.provincial.com

-Santiago Fittipaldi

AFRICA

Regional Winner: Standard Bank

Standard Bank of South Africa (SBSA) is the largest bank in Africa, with $162 billion in assets and a presence in 18 countries in Africa and 20 countries on other continents. The bank expanded its African network in 2007 by acquiring a controlling interest in IBTC Chartered Bank in Nigeria and agreeing to acquire control of CFC Bank in Kenya. It also obtained approval to acquire BankBoston Argentina and acquired a 67% share of Dundas Ünlü Securities, based in Turkey. The biggest event of last year for Standard Bank Group was an equity deal and strategic cooperation agreement with Industrial and Commercial Bank of China (ICBC), the world's largest bank by market capitalization. ICBC became the single largest shareholder of Standard Bank after paying $5.5 billion for a 20% stake. In addition to the cooperation benefits of the deal, Standard Bank raised new capital to support future growth.

SBSA's earnings rose 25% in 2007, and the bank's return on equity was 26.7%. Foreign exchange trading revenues grew strongly across the group, particularly in the rest of Africa outside of its home base in South Africa. The bank's strategy of building revenue streams in other emerging markets began to show results in 2007. While growth in earnings of its dominant South African operations was 15% last year, its businesses in the rest of Africa posted growth in earnings of 58%, and the earnings of its operations outside Africa rose 98%.

* Jacko Maree, Standard Bank Group CEO

www.standardbank.co.za

ANGOLA

BES Angola

BES Angola, owned by Portugal-based Banco Espirito Santo, has operated in this oil-rich country since 2001. The Luanda-based bank is expanding its operations rapidly and plans to have 50 branches in Angola by 2010, up from the current 20 branches. Sonangol, Angola's state oil and gas company, plans to join with BES in investing in oil-exploration projects in Brazil. Sonangol also is seeking to acquire a stake in BES Angola. Meanwhile, BES Angola is planning to establish an investment bank at a time when Luanda's stock exchange has just opened for business.

* Álvaro Sobrinho, CEO

www.besa.ao

BOTSWANA

Standard Chartered Bank Botswana

Standard Chartered Bank Botswana has introduced new services to take advantage of growing trade links between Africa and Asia. London-based Standard Chartered Bank has extensive operations in both regions. The Botswana bank offers retail and corporate banking services through 13 branches and three agencies. The bank launched the country's first chip-based credit card last year. It also introduced an electronic banking platform for corporate and institutional clients, which integrates cash, trade, foreign exchange and securities services.

* David Cutting, CEO

www.standardchartered.com/bw

COTE D'IVOIRE

Ecobank

Ecobank Côte d'Ivoire, established in 1989, has seven branches offering a full range of banking services for retail and corporate customers. It is part of Togobased pan-African banking group Ecobank Transnational (ETI), which has received long-term funding from the European Investment Bank and the International Finance Corporation of the World Bank and plans to raise an additional $300 million in equity capital to fund its continued expansion in Africa.

* Essoh Martin Djedjes, managing director

www.ecobank.com

ETHIOPIA

NIB International Bank

NIB International Bank, established in 1999, has 31 branches in Ethiopia, of which 20 are in the capital city of Addis Ababa. It also operates two foreign exchange bureaus. With more than 2,500 shareholders, NIB International Bank is the most widely held bank in the country. The bank's earnings rose 33% in 2007 and have averaged annual growth of 29% in the past three years. Foreign banks are barred in Ethiopia, and foreigners may not invest in banking or insurance sectors of the economy.

* Amerga Kassa, president

www.nibbank-et.com

GAMBIA

Trust Bank

Trust Bank started with four branches in 1997 and now has 12 locations around the country. It is the largest employer in the banking sector in Gambia and is the leading financier of peanuts, the backbone of the economy. It is also deeply involved in financing tourism and the construction of villas. Trust Bank also specializes in financing small and medium enterprises (SMEs). It recently began offering online banking services. Trust Bank is Gambia's only indigenous bank run and managed by Gambians.

* Pa Macoumba Njie, managing director

www.trustbank.gm

GHANA

Ghana Commercial Bank

Founded in 1953 as the Bank of the Gold Coast, Ghana Commercial Bank is the largest indigenous bank in the country, with 136 branches and 10 agencies. The bank recently introduced GCB Royal Banking, its first private banking service. It also launched a platform for Internet banking for individuals and businesses. Ghana Commercial Bank has a universal banking license and plans to add investment banking, brokerage and development banking services. Ghana relies on gold and cocoa exports, as well as remittances from overseas workers, as main sources of foreign exchange.

* Lawrence Newton Adu-Mante, managing director

www.gcb.com.gh

GUINEA

International Commercial Bank

International Commercial Bank Guinea continues to rack up double-digit gains in earnings year after year. ICB Guinea is a member of ICB Banking Group, which is owned by a Switzerland-based holding company listed on the AIM market of the London Stock Exchange. Conakry-based ICB Guinea has three branches in this French-speaking country. It also offers online banking services. ICB Banking has a presence in eight African countries, as well as in Eastern Europe, Indonesia and Bangladesh, where it recently acquired a controlling interest in Oriental Bank.

* Seshagiri Rao, CEO

www.icbank-guinea.com

KENYA

Barclays Kenya

The largest African subsidiary of UK-based Barclays Bank, Barclays Kenya is the leading retail bank in this East African country and is expanding its corporate business with the introduction of new products. Barclays Kenya is the country's leading bank by asset value, with a $1 billion balance sheet that is equivalent to about 10% of the country's gross domestic product. Its earnings rose about 9% last year, following a 19% rise in 2006. The bank has 69 branches and 82 ATMs, the largest number of any bank in Kenya.

* Adan Mohamed, managing director

www.barclays.com/africa/kenya

LIBYA

Al-Wahda Bank

Benghazi-based Al-Wahda Bank has a 20% share of Libya's banking market, with 71 branches. In February Amman-based Arab Bank bought a 19% stake in AlWahda for about $300 million. Arab Bank has the option to increase its holding to 51% in the medium term, according to the central bank. Libya is gradually opening its banking market to private sector participation. Last September it sold 19% of Sahara Bank to BNP Paribas of France.

* Said A. Rashwan, general manager

www.wahdabank.org/english

MOROCCO

Attijariwafa Bank

Attijariwafa Bank, based in Casablanca, is Morocco's largest financial group in terms of assets. Its earnings rose 8.2% in 2007 on an 18.6% increase in revenue, consumer loans rose 26%, and mortgage loans were up 47%. Attijariwafa Bank also has offices in France, Belgium and Tunisia. With 550 branches in Morocco, the bank offers corporate and retail banking and insurance services.

* Khalid Oudghiri, chairman and CEO

www.attijariwafabank.com

NAMIBIA

Standard Bank Namibia

Standard Bank Namibia is a subsidiary of the Standard Bank Group of South Africa and has had a presence in Namibia for more than 92 years. Based in Windhoek, it is one of the largest banks in Namibia, with 22 branches and 18 agencies. The bank continues to add ATMs, and it introduced new banking software last year. Standard Bank Namibia supports numerous projects in education, healthcare and disaster relief.

* Mpunizi Pupuma, managing director

www.standardbank.com.na

NIGERIA

First Bank of Nigeria

First Bank of Nigeria is the highest-capitalized company on the Nigerian Stock Exchange following a successful hybrid offer of rights and shares last year. The bank's earnings rose 74% in the nine months ended December 31, 2007, from the same period a year earlier. First Bank has signed an agreement with Guangdong Xinguang International of China to develop a free-trade zone in Ogun state in Nigeria. China Development Bank is using First Bank as the financing vehicle for the $500 million project and for other similar projects in Nigeria. Earlier, First Bank signed a business cooperation agreement with China Construction Bank.

* Jacobs Moyo Ajekigbe, CEO and managing director

www.firstbanknigeria.com

RWANDA

Banque Commerciale du Rwanda

In February Banque Commerciale du Rwanda (BCR) issued the first corporate bond on the newly formed Rwanda Stock Exchange. The country's economy is growing at about a 6% annual rate, and the financial services industry is growing twice as fast. BCR has a market share of about 30% of Rwanda's banking customers. The Kigali-based bank was privatized in December 2004, when UK-based private equity investor Actis Capital purchased an 80% stake. The government retained the remaining 20% interest. BCR is the country's second-largest commercial bank and offers a full range of services to corporations and small businesses.

* David Kuwana, managing director

www.bcr.co.rw

SOUTH AFRICA

Standard Bank of South Africa

Regional best-bank award-winner Standard Bank of South Africa (SBSA) posted 25% earnings growth last year. SBSA's corporate and investment banking unit had an excellent year in 2007. Strong M&A deal flow boosted the bank's knowledge-based fee income by 75%.

* Jacko Maree, group CEO

www.standardbank.co.za

TUNISIA

Banque de Tunisie

Banque de Tunisie s conservative lending policies and focus on top-tier corporations have protected the bank from many of the risks befalling its competitors. The Tunis-based bank, with 84 branches, has a low level of non-performing loans (NPLs) and the lowest debt-to-equity ratio of any bank in the country. Tunisia is a net importer of refined petroleum products, and high oil prices have hurt its economy. The North African nation's trade stands to benefit, however, from an association agreement with the European Union that went into effect on January 1.

* Alya Abdallah, president director-general

www.bt.com.tn

UGANDA

Stanbic Bank Uganda

Stanbic Bank Uganda is part of Standard Bank's 17-nation pan-African network and was acquired in 1993, when the Johannesburg-based bank bought ANZ Grindlays Bank's African operations. Stanbic Bank Uganda has an extensive branch network and is licensed as an investment bank by the Uganda Capital Markets Authority. It works closely with Standard Bank's corporate and investment banking unit and Standard Bank London. In February 2002 Stanbic Bank acquired a 90% interest in Uganda Commercial Bank, a formerly government-owned bank with primarily retail operations and a 67-branch nationwide network.

* Philip Odera, managing director

www.stanbicbank.co.ug

ZAMBIA

Standard Chartered Bank Zambia

Standard Chartered Bank Zambia, based in Lusaka, has a network of 16 branches, mainly in the mineral-rich Copperbelt region in the northern part of the country and other provincial centers. The bank offers a full range of retail and commercial banking products, including cash management, trade finance and corporate finance. It also is involved in many community-service programs, including the distribution of mosquito nets to fight malaria. The bank upgraded its core banking system last year and introduced online banking services for its corporate clients.

* Mizinga Melu, managing director

www.standardchartered.com/zm

-Gordon Platt

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