Install

Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

5 Banks Make List of Top 1,000

Five Russian banks are among the top 1,000 in the world by core capital, according to an annual list published by the London-based magazine The Banker.

MDM-Bank is the only newcomer, joining Vneshtorgbank, Sberbank, Gazprombank and Sobinbank, which all moved up several notches from the 1999 list. Before the financial meltdown in 1998, however, 12 Russian banks were in the top 1,000.

The magazine, established in 1926, rated the banks by their so-called Tier 1 capital — a term used to describe the capital adequacy of a bank. Tier 1 capital is core capital, which includes equity capital and disclosed reserves. In order to be considered, banks must submit a special questionnaire along with a profit and loss report drawn up according to international accounting standards.

Top 10 Banks by Tier 1 Capital*

1CitigroupU.S.54,498
2MizuhoJapan50,502
3Bank of AmericaU.S.40,667
4JP Morgan Chase & Co.U.S.37,581
5HSBCBritain34,620
6Credit AgricoleFrance26,383
7Ind. & Comm. Bank of ChinaChina22,792
8Deutsche BankGermany20,076
9Bank of Tokyo-MitsubishiJapan20,050
10Sakura BankJapan20,035
*All figures are in millions of dollars
Source: The Banker


Russian Banks in Top 1,000

RankLastBankCapital*%ChangeAssets*%Change
222454Vneshtorgbank1.4151.64.255.4
301388Sberbank0.937.319.646.9
415647Gazprombank0.693.62.955.8
708728Sobinbank0.254.80.575.1
814-MDM-Bank0.2112.70.9170.5
*All figures are in billions of dollars
Source: The Banker


Vneshtorgbank overtook state-owned savings bank Sberbank as Russia's top entry on the list. It jumped from its placing of 454th in 1999 to 222nd after its Tier 1 capital rose 151.6 percent to $1.43 billion, according to The Banker. The Central Bank, Vneshtorgbank's shareholder, doubled Vneshtorgbank's Tier 1 capital last year.

Vneshtorgbank chairman Yury Ponomarev has on several occasions emphasized that increasing the bank's capital is a necessary part of expanding cooperation with Western banks.

A similar thrust was made by Gazprombank, which increased its capital by 93.6 percent, climbing 232 places to No. 415.

MDM-Bank was included in the list at No. 814 after it increased its capital by 112.7 percent — mainly due to reinvesting profits, according to deputy chairman Vladimir Lelekov.

"This year we plan to expand on this growth both via internal sources and by the acquisition of other banking and financial institutions as part of our medium-term growth plan," he said.

Sberbank's move up the list was less dramatic, going from 388th place to 301st. It remained the largest Russian bank, however, in terms of assets — valued at $19.67 billion.

As in previous years, the United States played the leading role in the world financial system. Of the 25 major banks, six are based in the United States. Britain and China have three each, while France, Germany, the Netherlands and Switzerland have two apiece.

With Tier 1 capital of $54.4 billion, U.S. Citigroup topped the list for the third year in a row. At $50.5 billion, Mizuho Financial Group — formed from the merger of Fuji Bank, Dai-Ichi Kangyo Bank and Industrial Bank of Japan — squeezed past Bank of America for second place. Mizuho was No. 1 internationally in terms of assets, however, with $1.26 trillion, or $350 billion more than Citigroup.