The New Nation - Internet Edition

BUSINESS REPORT

HSBC has come first in a Banker Magazine survey of the world's top 1,000 banks. HSBC takes the crown following nine years of US domination and jumps two places from its third position last year. It also came top in the Western Europe category.

Following HSBC in the top five were Citigroup, Royal Bank of Scotland, JP Morgan Chase and last year's winner, Bank of America.

HSBC leads the rankings by virtue of its tier one capital of USD 105 billion, some USD 17 billion ahead of its nearest rival, and its bumper profits.

The survey found that US banks now account for just 14% of aggregate Top 1,000 pre tax profits, down from 24% last year. Asian banks, meanwhile, have risen to 19% from 12% a year ago. European banks stayed steady at 41 %.

This isn't the first time this year HSBC has come top of a prestigious ranking. In April, the Group headed Forbes Magazine's 2000 list of the world's largest companies - the first non-US company to lead the rankings.

Tier One capital is often used to determine the strength of a financial institution.

The current credit crunch has seen falls in the tier one capital of many banks. While HSBC has undoubtedly been affected by global economic conditions, it was one of the first to put measures into place to deal with any fallout, while its diversified business and conservative lending strategy means it has suffered less than many of its peers.