2008 WORLD'S BEST BANKS

As the global economy continues to be challenged by rising interest rates and oil prices, banks are under increasing pressure to provide more sophisticated levels of service spanning multiple markets for less. The need to comply with a raft of regulations including Basel II, Sarbanes-Oxley, the Single Euro Payments Area (SEPA) and Markets in Financial Instruments Directive (MiFID) is also placing additional cost pressures on banks' traditional lines of business, forcing them to reinvent the way they deliver services to their consumer, corporate and banking customers. Increasingly, survival is not just about being the largest, most profitable or most well-capitalized bank. Geographical diversification, product innovation, depth and breadth and a well-diversified earnings base are all essential ingredients for withstanding the economic shocks of high interest rates, customer defaults on loans and reduced consumer and corporate appetite for borrowing. Only those banks with the capital to invest in technology and a global footprint, combined with local market knowledge and a well-trained staff that are able to anticipate customers' needs, are likely to remain dominant players for years to come.

Taking these factors into consideration, Global Finances editorial team has identified the best banks in 109 countries. In selecting these top banks, we considered factors that range from the objective to the informed subjective. Objective criteria included growth in assets, profitability, geographic reach, strategic relationships, new business development and product innovation. Subjective criteria included the opinions of equity and credit-rating analysts, banking consultants and others in the industry. The winners may not be the largest or the oldest or the most diversified in a given country or sector but, rather, the best-the bank with which corporations, consumers and financial institutions around the world are most likely to want to do business. Within this listing of the World's Best Banks we have included our April 2006 list of the Best Developed Market Banks and our May 2006 list of the Best Emerging Market Banks.

Contributors: Joachim Bamrud, Anita Hawser, Laurence Neville and Gordon Platt
BEST GLOBAL BANKS
BEST CORPORATE BANK
Citigroup Corporate & Investment Bank
The corporate and investment banking division of Citigroup boasts one ot the largest geographical footprints, encompassing approximately 100 countries. It provides coinpanies and financial institutions with a range ot services from cash management, treasury and FX to commercial cards, liquidity, investment solutions and trade. The bank has also invested heavily in Web-enabled solutions that provide companies with greater visibility and transparency into their payables and receivables processes, as well as real-time information that enables them to better manage their working capital and liquidity needs. The corporate and investment banking division is one of the bank's most profitable, reporting its second-highest revenues ever, up by 31% to $6.7 billion in the second quarter of this year.
Robert Oruskin, president and CEO
www. citigroupcib.com
BEST CONSUMER BANK
HSBC
Despite some volatility in the consumer loans sector, HSBC's consumer banking business is diversified enough to withstand any losses in that sector. In the half year to June 30,2006, the profit before tax of HSBC's personal financial services division increased by 47.2% to $5.9 billion. HSBC: Holdings Group posted a pre-tax profit of $12.5 billion, an increase of 18% on the previous year. The bank s strong and diversified earnings base and its push into the "lower risk near-prime segment consumer finance business" in the United States saw Fitch Ratings raise its rating to positive from stable. "HSBC's recent interim results announcement demonstrated the strength of its global franchises and earnings power," says James Longsdon.senior director in Fitch's financial institutions team in London. "While its emerging markets exposure means it will inevitably be affected by localized or regional shocks, the group is diversified, prudently managed, well-capitalized and has a long track record ot resilience to such events," he adds.
Stephen Green, group CEO
www.hsbc.com