"Only the cream of AsiaÆs banks are shortlisted for this award," says Steven Irvine, editor of FinanceAsia. "The decision on the winning bank is a highly quantitative one û with each bank scored on a number of key performance metrics. I am pleased to say that Kookmin once again scored the highest of the nine shortlisted banks. This victory is a repeat of KookminÆs win last year and is reflective of the fact that Kookmin is one of the biggest and best managed banks in one of AsiaÆs biggest economies.ö
The Best Asian Bank award is given to the bank that ranks highest amongst the nine banks that have individually won our Best Bank award for each country. We ranked the banks by a series of metrics and also by their scores in Standard & PoorÆs Bank Fundamental Strength Ratings. We looked at 12 metrics: return on assets, return on equity, profit per employee, total profit, total assets, percentage of net income derived from fee business, market capitalisation, NPL ratio, growth rate, number of employees, price to book ratio and net interest margin. The best-ranked in each metric got 9 points and the lowest ranked got 1 point.
We then overlaid this with S&PÆs Bank Fundamental Strength rating which measures a bankÆs strength and grades them in nine notches from A through E. We gave 9 points for an A rating through to 1 point for an E rating (a C rating, for example, would get 5 points, a C+ would get 6). The S&P rating got a 25% weighting in the overall score.
At the end of this point scoring system Kookmin Bank emerged as the Best Asian Bank. The nine shortlisted banks were: ICBC (China), HDFC Bank (India), BRI (Indonesia), DBS (Singapore), BPI (Philippines), Siam Commercial Bank (Thailand), Public Bank (Malaysia), Chinatrust (Taiwan), and Kookmin. HSBC (which won Hong Kong) is excluded on the basis that it is a global bank.