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Desjardins one of world’s strongest banks

Desjardins Group tied for second place (with Norinchukin Bank, Japan) in Bloomberg’s recent ranking of the world’s 20 strongest banks.

Desjardins also earned the distinction of being North America’s strongest bank. Honk Kong’s Hang Seng Bank took top spot with an overall score of 20.8, slightly ahead of the second-place ranking of 22.1 points (smaller numbers indicate higher rankings).

Norinchukin Bank is a cooperative that serves 3,800 farm, fishing and forestry co-ops, according to Bloomberg.

To come up with the rankings, Bloomberg evaluated public and private banks (with total assets of $100 billion or more as of May 1) against five weighted categories:

  1. Ratio of Tier 1 capital to risk-weighted assets (40%)
  2. Ratio of nonperforming assets to total assets (20%)
  3. Ratio of reserves for loan losses to nonperforming assets (20%)
  4. Ratio of deposits to funding (15%)
  5. Efficiency ratio, comparing costs to revenues (5%)

Canadian Imperial Bank of Commerce and Royal Bank of Canada also made the list, ranking 15th and 18th, respectively. U.S. Bancorp, the only American bank to make the cut, placed 19th. ◊