Asia’s Top 20 banks by revenue bounce back in 2021

But the recovery may not be sustained in 2022 as constraints pile up.

Asia’s biggest 20 banks based on revenue saw their total income rise in 2021 as economic activities recovered.

The aggregate revenue jumped 11.4% to US$1.5t, according to data from data and analytics firm GlobalData. Fourteen banks–12 from China–even reported double-digit growth.

Notable performers were Postal Savings Bank of China (PSBC), China Merchants Bank (CMB), and China Construction Bank (CCB), which all logged over15% growths in their revenues.

Read More: Lockdowns threaten Chinese banks' loan quality: analyst

Amongst markets, China continues to lead the list of the top 20 APAC banks based on revenue with 13 banking institutions, followed by Japan (3), South Korea (3), and India (1).

The non-Chinese top performers that reported double-digit growth were Mizuho Financial and KB Financial. Mizuho Financial’s revenue grew by 13.2% on the back of a 23.2% rise in interest income and 162% growth in trading income.

KB Financial’s revenue growth was reportedly driven by a 5% rise in its interest income on account of about 8% growth in its loan book. This was further bolstered by a 22.5% growth in net fee & commission income, which was mainly driven by credit card fees on the back of growth in consumption.

In contrast, Korean peer Hana Financial reported an 11% revenue decline as net losses from non-interest activities piled up.

This is a decline that all other top banks may echo in 2022, amidst geopolitical disruptions, rising energy prices, and resurgence of lockdown measures in China, warned Parth Vala, company profiles analyst at GlobalData. 

“2022 has brought its own new challenges with rapidly changing geopolitical landscape, increasing supply chain constraints, rise in energy prices, and stringent lockdown in China,” Vala said.

“With these headwinds, the top APAC banks are likely to find it difficult to maintain the recovery that they achieved in 2021.”