Regional Banking Monitor
TGB Regional Banking Monitor: Americas — Q4 2024
Brazil raised the Selic to 14.25% while Canada cut to 2.75% and Mexico to 9.00%. US banks earned $268.2bn in 2024 with fourth-quarter ROA of 1.11%, but unrealised securities losses rose to $482.4bn. Colombia held at 9.50% as inflation edged up to 5.3%.
TGB Regional Banking Monitor: Asia Pacific — Q4 2024
Japan raised its policy rate to around 0.5% while India, South Korea, Australia, Indonesia and Thailand cut; Chinese commercial banks' NPL ratio fell to 1.50% but their return on assets slipped to 0.63% in Q4 2024, and Thai loans contracted.
TGB Regional Banking Monitor: Sub-Saharan Africa — Q3 2024
Non-performing loans reached 24.3% of gross loans in Ghana and 16.7% in Kenya in August 2024, against 5.7% in South Africa in July, as policy rates fell in Pretoria, Nairobi and Accra but rose in Abuja and Lusaka.
TGB Regional Banking Monitor: Asia Pacific — Q3 2024
Asia-Pacific banks entered the easing cycle with strong capital: CET1 ratios of 13.33% in South Korea and 16.7% at Singapore's local groups, but Hong Kong's classified loan ratio rose to 1.99% and Korean bank margins slipped to 1.52%.
TGB Regional Banking Monitor: Europe — Q3 2024
EU/EEA banks earned an 11.1% return on equity in the third quarter of 2024 while their net interest margin slipped 3bp from its peak to 1.66%; the ECB cut its deposit rate to 3.00% and held capital requirements broadly steady for 2025.
TGB Regional Banking Monitor: MENA — Q3 2024
UAE banks' gross credit grew 9.1% in the year to September 2024 and the system capital ratio reached 18.6%, as Saudi, Emirati and Bahraini central banks matched 75bp of Fed cuts and Kuwait moved only 25bp.
TGB Regional Banking Monitor: Americas — Q3 2024
Brazil lifted the Selic to 11.25% as the US, Canada, Mexico and Colombia eased. Large US banks earned a 12% ROE in the third quarter, the capitalisation index of Mexican commercial banks rose to 19.39% and Colombian lending kept shrinking in real terms.
TGB Regional Banking Monitor: Sub-Saharan Africa — Q2 2024
Kenya, South Africa and Ghana began cutting rates after the second quarter of 2024, while gross non-performing loan ratios of 16.3% in Kenya and 24.1% in Ghana in June 2024 kept credit quality the main concern for banks.
TGB Regional Banking Monitor: MENA — Q2 2024
UAE bank credit rose 8.0% year on year to AED 2,100.9 billion in June 2024 as Gulf central banks cut rates with the Fed in September; Egypt held at 27.25% with July inflation at 25.7%, and Moroccan bank NPLs reached 8.8% in May 2024.
TGB Regional Banking Monitor: Europe — Q2 2024
The ECB and the Bank of England began cutting rates in June and August 2024, taking the deposit rate to 3.50% and Bank Rate to 5%, while ECB-supervised banks reported a 15.74% CET1 ratio and corporate lending grew by only 0.6% a year in July.
TGB Regional Banking Monitor: Asia Pacific — Q2 2024
Chinese commercial banks reported a 1.56% NPL ratio and 15.53% capital adequacy at end-June 2024, Korean banks' first-half profit fell 11.0% as non-operating income turned negative, and the Bank of Japan lifted its policy rate to around 0.25% as regional policy paths diverged.
TGB Regional Banking Monitor: Asia Pacific — Q1 2024
Chinese commercial banks reported a 1.59% NPL ratio and Korean banks a 24.1% fall in first-quarter 2024 profit, while Japan ended negative rates, Indonesia raised its policy rate to 6.25% and Australian bank capital reached a new high.