Hungary’s OTP Bank Tops S&P Global Market Intelligence’s Inaugural European Bank Ranking

S&P Global Market Intelligence has released its first-ever ranking of Europe’s best-performing banks, with Hungary’s OTP Bank emerging as the top performer in 2023. The ranking evaluated Europe’s 50 largest publicly traded banks based on seven financial metrics, including return on average equity, net interest margin, noninterest income/average assets, cost-to-income ratio, problem loan ratio, net stable funding ratio, and common equity Tier 1 ratio.

OTP Bank, the largest bank in Hungary, secured the top spot due to its robust lending margins driven by higher interest rates. Poland’s PKO Bank Polski and Bank Polska Opieki claimed the second and third positions, respectively. These Central European banks benefited from the higher central bank interest rates in 2023, which allowed them to increase earning-asset yields more rapidly than funding costs. OTP Bank, PKO Bank Polski, and Bank Polska Opieki boasted the highest year-end net interest margins among major European lenders.

David Hayes, Manager of Global Financial Institute Research at S&P Global Market Intelligence, highlighted that the three Central European banks excelled in profitability due to elevated interest spreads and strong non-interest income performance.

On the other end of the spectrum, France’s three largest banks, BNP Paribas, Crédit Agricole, and Société Générale, occupied the bottom three positions in the ranking. These banks underperformed their European peers on various metrics, primarily due to structural issues and regulated savings accounts that limited their ability to benefit from higher European Central Bank interest rates.

The ranking reflects the impact of efforts to combat high inflation, which led to higher central bank interest rates across Europe. The full analysis, including detailed insights and rankings, can be found on S&P Global Market Intelligence’s website.

S&P Global Market Intelligence, a division of S&P Global, is renowned for providing accurate and insightful information to help organizations navigate the economic landscape. With their unrivaled expertise and data solutions, they empower customers to make informed decisions with confidence.

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