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Asian banks' assets grew 10.3% amid surge in mergers and acquisitions

Chinese and Japanese banks again dominate the list of The Asian Banker 500 largest banks. Balance sheet growth accelerated in the first half of 2020 and some players are reinforcing their scale and competitiveness through mergers and acquisitions

January 28, 2021 | Wendy Weng
  • China and Japan continue to lead the region in the number of banks on the list
  • Banks’ balance sheet growth accelerated the most in Thailand and India, largely attributed to mergers and acquisitions
  • The pandemic is expected to further accelerate bank consolidations

Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, Bank of China and Mitsubishi UFJ Financial Group have remained the top five largest in Asia Pacific, according to The Asian Banker 500 (AB500) 2020, an evaluation of the 500 largest commercial banks and financial holding companies (banks) in the Asia Pacific region. This year, the financial information in the first half of financial year 2020 (1H FY2020) was collated and incorporated into the assessment of how banks performed during the COVID-19 pandemic.

This year’s evaluation covers 23 countries and territories, and the 500 largest banks combined had $66.5 trillion in total assets, $34.2 trillion in net loans and $46.5 trillion in customer deposits. These banks generated aggregate net profit of $213 billion in 1H FY2020, compared with $240 billion in 1H FY2019. It’s the first time that banks in Kazakhstan have been included in the evaluation. The five banks from Kazakhstan on the list had total assets ranging from $3.75 billion to $24 billion.

Australia and New Zealand Banking Group overtook Commonwealth Bank of Australia as the largest bank in Australia. These two banks are very close in terms of total assets, same as Shinhan Financial Group (Shinhan) and KB Financial Group (KB) in South Korea and Vietnam Bank for Agriculture and Rural Development (Agribank) and Bank for Investment and Development of Vietnam (BIDV) in Vietnam. In this year’s ranking, Shinhan overtook KB to become the largest in South Korea and Agribank ranks in first position in Vietnam in terms of total assets.

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Keywords:Asset Quality, Bank Profitability