finance

North American banks accelerated growth by implementing AI and enhancing their client experience.

Across North America, the winners of our Best Banks awards continue to accelerate growth by embedding advanced technology and solutions driven by artificial intelligence throughout their organizations. With the rollout of new platforms and applications, these banks are enhancing the client experience, resulting in increasing levels of digital engagement. Also, partnerships with fintechs and targeted acquisitions are enabling more rapid innovation and expanded service offerings. These efforts are complemented by significant resources allocated to workforce development through enterprise-wide AI implementation, ensuring employees can leverage new technologies to increase innovation and efficiency.

Among the US regional bank winners, large-scale technology initiatives are driving enterprise-wide transformation toward the creation of financial-ecosystem models in which financial services are seamlessly connected across banking platforms. Institutions continue to invest heavily in artificial intelligence, data analytics, and automation to streamline operations and deliver more-personalized client experiences.

Open banking and connectivity enabled by application programming interfaces (APIs) are allowing integration with fintech partners and third-party platforms to expand banking services. With embedded finance, banks are integrating treasury services, payments, and cash management tools directly into client workflows, while partnerships with fintech firms are accelerating innovation.

North America

Bank of Montreal

Bank of Montreal (BMO), with its leading Canadian franchise and its expanding US operations, is a powerful North American universal bank with robust service offerings across its Canadian personal and commercial banking, US banking, wealth management, and capital markets business lines. Part of BMO’s growth strategy involves new behavioral-engagement tools in personal banking, with the introduction of the “My Financial Progress” platform, a digital planning tool to set financial goals with personalized guidance. Complementary services include apps to help build financial literacy, increase savings, manage spending, and monitor cash flow.

For commercial clients, the bank has launched new embedded finance offerings that are integrated into clients’ enterprise resource planning (ERP) systems to operate seamlessly. The bank launched application programming interfaces (APIs) for payments, enabling businesses to integrate secure, real-time payment capabilities into their ERP systems, treasury platforms, and customer-facing applications.

Fintech partnerships have contributed to new products such as BMO Sync that integrates BMO’s business-banking services directly into client ERP systems. BMO also has introduced programs to empower its workforce, launching its “AI for All” initiative,which will train an all employees to have a working knowledge of AI. The bank also offers specialized learning paths in AI, cloud technology, and cybersecurity.

Canada

Royal Bank of Canada

Royal Bank of Canada (RBC) is driving growth through the development of advanced technologies, platform enhancements, and targeted acquisitions. The bank’s small- and midsize business clients benefit from RBC’s joining the Business Development Bank of Canada’s banking network for access to its 800 million Canadian dollar ($583 million) Business Accelerator Loan Program, which provides added liquidity to business owners via loan guarantees to banks in the program.

RBC is a leader in AI research and implementation across its franchise, through the RBC Borealis research lab.With the development of its NOMI digital platform, RBC provides a suite of retail banking solutions via its mobile app, designed to help retail clients more effectively manage their money through the app’s budgeting, spending analysis, and automation features. For institutional investors, the bank developed Aiden, an AI-powered electronic-trading platform that optimizes trade execution. In addition to these in-house initiatives, the bank supports the advancement of the sector via its RBC’s technology banking and innovation arm, RBCx, which provides startups and VC firms with advisory services and access to financing and capital.

United States

Bank Of America

Bank of America’s growth in recent years has been increasingly driven through its expansion of AI-enabled digital solutions. The bank has focused on continuously enhancing its core digital offerings, resulting in high levels of engagement and client satisfaction. In 2025, digital adoption by consumers and small businesses reached 81% and 86% among wealth and global-banking clients, respectively. Over 20 million clients use Erica, the bank’s AI-powered virtual financial assistant. To support greater scale, the bank upgraded the underlying infrastructure of this service, enabling the rollout of next-generation AI capabilities.

AI is also driving internal productivity and client-service improvements. More than 90% of employees now use the Erica for Employees virtual assistant, which has been enhanced with improved search capabilities and broader functionality. Additionally, AI is supporting workforce development through the Academy, the bank’s internal education and training organization, which utilizes interactive coaching tools to help employees deliver more effective and consistent client interactions.

Mid-Atlantic

Truist

Truist is accelerating its growth strategy with the launch of AI-driven solutions, a refocused branch model, and the creation of a role for a chief AI and data officer. To update its physical footprint with integrated technology and modern layouts, the bank will open 100 new insights-driven branches and renovate 300 more branches in high-growth locations across its markets in Mid-Atlantic states and the Southeast. For consumers and small businesses, a new API-based open-banking platform offers connectivity with Mastercard’s open-finance technology for secure and centralized access to the client’s financial data across a growing network of fintech apps.

The bank is introducing scalable solutions to modernize business banking and boost client engagement. In collaboration with global fintech firm Pollinate, Truist introduced Truist Merchant Engage, an integrated merchant-services platform that benefits small- and midsize-business clients through a unified platform combining core banking services with merchant solutions. The result is an improved digital payments experience that includes an intuitive dashboard and tools for data-driven insights to streamline clients’ operations. In payments services, the bank has developed multiple options for commercial and corporate clients. The bank introduced an AI-based receivables platform that uses machine learning for greater simplicity and efficiency through automated payment reconciliation. The resulting accelerated process eliminates invoice errors and improves client cash visibility and fraud protections.

Additionally, Truist partnered with fintech Koxa to introduce Truist One View Connect. Currently a pilot program with an official launch later in the year, this service is an embedded banking solution allowing seamless management of treasury workflows, payments, and cash positions through integration with a client’s enterprise resource planning (ERP) infrastructure. This new product is a new feature of Truist One View, the bank’s flagship digital platform for business clients.

Northeast

Citizens Bank

To improve client service and engagement, Citizens Bank, our winner for the Northeastern region, has launched a multiyear transformation through its “Reimagine the Bank” initiative aimed at implementing advanced technology to modernize its operating model toward a more digitally integrated bank. The program focuses on leveraging generative AI, data analytics, and automation, across the bank’s retail and commercial business lines, standardizing and streamlining internal operational processes and workflows to improve efficiency and drive growth.

As part of the bank’s progress toward open finance and embedded banking, Citizens now offers an open-banking API allowing businesses and third-party applications to connect directly into Citizens’ banking systems to access client data and initiate transactions. The bank has implemented upgrades to its core digital mobile and online banking platform with new direct deposit options. Its new features make it easier to manage and update client payment methods across a range of accounts, including subscription services and online merchant sites.

For commercial clients, accessOPTIMA is the bank’s flagship digital treasury management solution designed to provide a centralized, real-time view of liquidity, cash positions, and payments activity across the organization. New services for commercial clients include the Citizens Payee Select platform, which more efficiently and securely manages business transactions and payment disbursements by shifting payment control to the recipient. This capability was developed in partnership with Verituity, a fintech that creates leading cloud-based payment solutions, a company in which Citizens holds an equity investment

Midwest & Southwest

Fifth Third Bank

With the completed acquisition of Comerica Bank, Fifth Third Bank has solidified its leading franchise in the Midwest and expanded significantly in the Southwest. Fifth Third now ranks as the ninth-largest bank in the US, with $294 billion in assets. The merger combines Fifth Third’s leading retail and digital bank with Comerica’s strong middle-market commercial banking capabilities over a footprint that covers 17 of the 20 fastest-growing markets in the country.

Significant growth opportunities exist with the addition of Comerica’s Technology and Life Sciences business that involves deep relationships with venture-backed and startup companies providing specialized banking, treasury, advisory, and funding solutions through locations in all major technology hubs. Fifth Third Bank’s digital strategy is focused on the enhancement of its mobile platform, expansion of embedded finance capabilities, and the deeper integration of AI-based solutions in its consumer and commercial banking segments. Through Fifth Third’s Provide platform, the bank offers specialized services to health care practices and medical professionals, with valuation advisory services, acquisition loans, and equipment finance. The bank is expanding its services through a partnership with Brex, a fintech specializing in corporate cards and expense management. The solution gives commercial banking-card holders greater efficiency through automated expense management with secure, real-time payments, as well as improved visibility to company spending. The bank expects this initiative to generate upward of $5.6 billion in annual commercial card-payment volume.

Southeast

Regions

Regions, our Best Bank in the Southeast, is in the midst of a multiyear technology-transformation program that includes the expansion of embedded banking capabilities to improve the customer experience across the bank’s retail commercial and specialty-client segments. Enhancements to the bank’s mobile app incorporate client feedback and include a redesigned interface for easier navigation, with shortcuts to features like funds transfer and credit card locking to prevent fraud, as well as new financial planning and budgeting services. The bank offers new capabilities with open-banking services to allow client financial information to be shared securely with third-party service providers.

On the commercial side, Regions has ramped up its treasury management solutions through its Embedded ERP Finance platform that allows clients to access their financial data through their own ERP systems to better manage cash flow, optimize liquidity, and reduce risk. Specialty services to niche industries are a competitive advantage for Regions. Home improvement contractors can offer financing options to their homeowner clients to pay for projects. For health care clients, a new treasury management service is powered by MediStreams, a health care platform focusing on payment automation and reconciliation. Additional specialized services include a digital portal that allows real estate banking clients to more efficiently manage their construction projects. The portal is supported by Built, a real estate and construction-finance platform that streamlines project financing, development, and management, with client access through a centralized hub.

West

BMO Harris Bank

BMO’s growth strategy in the United States is fueled by the bank’s “One Client” coverage model to ensure customers experience BMO as one integrated bank. This involves technology alignment and use of shared data across business units to better identify client needs and deliver more-personalized service. With new digital services and AI-led advancements, the bank is positioned to build on its significant and growing US franchise that accounted for 42% of group revenue in fiscal year 2025. The franchise is bolstered by an expanding top-15 consumer bank with over 850 banking centers in the Midwest and Western US regions, as well as a top-5 commercial business.

As part of BMO’s branch rationalization to exit low-return markets in favor of higher growth areas, the bank sold 138 branches in the central US. The bank aims to foster closer client engagement through tailored financial solutions with access to in-person financial guidance. BMO is moving to capture more clients in fast-growing markets in the Western US with a multiyear strategy involving the modernization of existing locations and expansion of its footprint through the opening of 130 new community banking hubs in California and 15 in Arizona over the next five years.

On the commercial side, new product launches include BMO Sync, an embedded solution that integrates BMO’s full range of business-banking services directly into client ERP systems to streamline workflows. Payment APIs enable commercial clients across the US to add secure, real-time payment capabilities into their ERP systems, treasury platforms, and customer-facing applications for efficiency and transparency. A key driver of the bank’s progress is its commitment to a unified corporate culture. With the launch of its “AI for All” initiative, an enterprise-wide foundational training program, BMO ensures that all employees develop a working knowledge of AI. The bank also offers specialized learning paths in AI, cloud technology, and cybersecurity as well as the opportunity to develop technical skills through Pluralsight, a digital learning platform.

Western Europe’s banks were well capitalized, digitally evolving, and strategically acquisitive—despite rate headwinds.

After the exceptional windfall years of 2022 and 2023, when aggressive rate hikes fattened net interest margins, most Western European banks had a strong 2024, particularly the larger players with extensive branch networks and franchises. Fast forward to 2025, and a more sobering reality dawned. The European Central Bank’s (ECB’s) easing cycle was well underway, and with it came the question that had been quietly forming in the minds of analysts and investors alike: Could Western Europe’s banks sustain their profitability once the rate tailwind turned to a headwind? The evidence now clearly answers that question in the affirmative—though not without adaptation, and not without some pointed lessons along the way.

The headline story is one of structural resilience, corroborated at the highest levels: In the ECB’s Annual Report on Supervisory Activities published in March 2026, the bank confirms that banks under its direct supervision “remained resilient in 2025,” with the aggregate Common Equity Tier 1 capital ratio (CET1 ratio) of “significant institutions” climbing to 16.1% in the third quarter of 2025, driven by strong profitability and retained earnings. Return on equity (ROE) stabilized at around 10% across the sector—modest by the standards of the best performers in our latest Best Banks ranking.

Separately, the European Banking Authority’s (EBA’s) Autumn 2025 Risk Assessment Report affirms that European banks “remain strong in capital, liquidity, profitability and asset quality,” even as the report urges “continued vigilance” in the face of geopolitical uncertainty and rising operational risks. This picture is richly illustrated by the individual performers in this year’s awards, where CET1 ratios frequently exceed the European average by a wide margin.

Yet the year was not without its disappointments. Margin pressure was real, and pockets of weakness were visible. The EBA itself warns that declining net interest income has been a systemic challenge, offset only where banks had successfully diversified into fee and commission income.

That diversification imperative made M&A one of the defining strategic trends of the period—and it shows no sign of abating. DNB’s acquisition of Nordic asset manager Carnegie Holding and Bank of Cyprus’ purchase of Ethniki Insurance, for example, reflect a sector in active pursuit of scale, complementary revenue streams, and fintech capability.

KPMG 2025 Banking and Capital Markets CEO Outlook, published January 2026, adds important context here, however: “The vast majority of CEOs surveyed expect to be active in the deal market over the coming three years, although fewer envisage ‘high-impact’ deals (down from 48% to 41%). Instead, 46% favor ‘moderate-impact’ acquisitions, primarily targeting fintechs, digital lending platforms, and RegTech [regulatory technology] firms to accelerate innovation without overextending capital.” Overall, European banks recognize a strategic need for scale, with momentum toward both domestic consolidation and cross-border deals and are hoping that a more favorable regulatory environment may emerge to support this.

In Western Europe, technology and ESG have become structural pillars rather than peripheral initiatives. Danske Bank has leaned into generative AI (Gen AI) to support retail investment growth, while UBS CEO Sergio Ermotti highlights the role of transformational AI projects in bolstering operational resilience as the Credit Suisse integration approaches completion. Swedbank’s 99.9% digital uptime across Swedish and Baltic operations is now as commercially significant as any lending figure. On sustainability, Eurobank leads its Greek peers with over €6.9 billion ($8.1 billion) in sustainable financing; UniCredit has issued €6.5 billion in green bonds since 2021; and CaixaBank has become the first Spanish bank to receive a Sustainable Finances certification from AENOR, the Spanish Association for Standardization and Certification.

But the technological evolution carries a shadow. According to the KPMG CEO Outlook, cyber risk is now the number-one factor that could slow growth—cited by 86% of banking CEOs, up from 81% in 2024—and cybersecurity ranks as the top challenge facing banks globally, ahead of every other sector in KPMG’s survey. This reflects the uniquely exposed position of banks, whose large customer bases and access to highly confidential data make them prime targets. As digital-banking platforms, open-banking APIs, and AI tools expand attack surfaces, hackers are increasingly deploying AI to pursue payment fraud and install ransomware. It is little surprise, then, that 57% of banking CEOs are “prioritizing cybersecurity above all other investments.” The EBA echoes this concern, warning that elevated geopolitical risks are amplifying operational and cyber threats, and that banks must invest continuously in resilience infrastructure.

As we publish our annual Best Banks award winners, the outlook is cautiously optimistic. Rate normalization will continue to test income generation; geopolitical friction shows no sign of resolution. But the weight of evidence—from individual bank results, from the EBA, and from the ECB itself—points consistently in the same direction: Western Europe’s leading banks have diversified their revenues, fortified their capital, and earned ratings improvements to match. Resilience, it turns out, is not merely a buzzword for these banks—it’s a strategy.

Western Europe

CaixaBank

Once again, CaixaBank has secured a dual victory as the Best Bank in Western Europe and the premier financial institution in its home country, Spain—a distinction the bank has now achieved for a remarkable eight consecutive years.

A domestic market leader, CaixaBank operates a “socially responsible universal banking model with a long-term vision, based on quality, proximity, omnichanneling, and specialization.”

The bank reports a net attributable profit of nearly €5.9 billion for 2025, net interest income of almost €10.7 billion, and an ROE of 14.9%. Revenues from services—including wealth management, protection insurance, and banking fees—were up 5.4% to nearly €5.3 billion. New loan origination to individuals grew 12.4% to almost €2.6 billion. New mortgage lending rose 6.5% to reach nearly €8.5 billion, while lending to businesses increased 7.6% to reach about €12.4 billion.

Exceeding both targets and expectations, CaixaBank has raised the growth and profitability targets set out in its 2025-2027 Strategic Plan.

CaixaBank’s commitment to the communities it serves was evident once again last year, with initiatives encompassing financial-inclusion solutions with a social impact, regional social projects, and a steadfast commitment to the environment. The bank is an Iberian and European leader in sustainable and socially responsible investment.

Reflecting the strength of the bank’s performance, Fitch Ratings revised CaixaBank’s Outlook to Positive from Stable in October while affirming both its Long-Term Issuer Default Rating and its Viability Rating at A-. Fitch also upgraded the bank’s Short-Term IDR to F1 from F2.

The agency says its outlook reflects its “expectation that CaixaBank’s leading domestic position and diversified business profile will enable it to capture additional growth opportunities stemming from Spain’s economy, rising credit demand and favorable business trends,” adding that these factors will “gradually strengthen CaixaBank’s earnings resilience through the interest rate and economic cycles.”

Andorra

Creand Credit Andorra

The winner for the eighth consecutive year, Creand Credit Andorra (formerly Credit Andorra) boasts over 75 years of experience in the principality, offering a comprehensive suite of global private banking, asset management, and insurance services. The bank posted a robust 2024 profit of €70.9 million, representing a solid performance following its exceptional 60% profit surge in 2023. Business volume reached €30.7 billion, an 11.1% year-on-year (YoY) increase. Beyond the group’s financial strength, it remains a key local employer with 508 staff in Andorra, where women make up 48% of the workforce.

Austria

UniCredit Bank Austria

One of the largest retail banks and best-capitalized major financial institutions in Austria, UniCredit Bank Austria is a leader in corporate banking, wealth, and private banking. As of September 2025, the bank’s key performance indicators included a return on allocated capital of 23% and a cost-income ratio of 39%—demonstrating best-in-class cost efficiency compared to its peers. The bank’s CET1 ratio of 18.6% reflects a prudent capital base. Revenues came in at €2 billion, while gross operating profit stood at €1.2 billion. UniCredit serves around 15 million clients through its corporate, individual, and payment solutions groups in Austria, Germany, Italy, and Central and Eastern Europe. Reporting its 20th consecutive quarter of profitable growth in the fourth quarter, the group says its vision is to be “the bank for Europe’s future.”

Belgium

KBC

In the beating heart of Europe, KBC wins the laurels as our Best Bank in Belgium. Net income at the end of June 2025 was €1.6 billion, up 9% YoY. Total assets were €390.7 billion. The group reported a strong capital base with a 14.6% CET1 ratio and an ROE of 15% for the period. A FTSE4Good Index Series constituent, the bank continues its sustainability journey, receiving recognition annually in the S&P Sustainability Yearbook of top performers.

Cyprus

Bank of Cyprus

It was another year of robust performance for Bank of Cyprus, which saw total assets rise 8% to €28.6 billion in 2025. While profit after tax moderated slightly to €481 million (down 5% YoY), the bank’s 37% cost-income ratio and strengthened 21% CET1 ratio underscore its market-leading efficiency and capital discipline. The bank’s €29.3 million acquisition of Ethniki Insurance Cyprus marked a significant step in diversifying its business model and bolstering noninterest income streams.

Denmark

Danske Bank

Offering a full range of retail, corporate, and institutional services, Danske Bank returns as our Best Bank in Denmark for the third time in a row. In 2025, a resilient Danish economy contributed to a 5% growth in business lending and a surge in retail investment activity that pushed assets under management (AUM) across the group to over 1 trillion Danish kroner (more than $157.3 billion). The bank’s Danish operations served as the primary engine for a group ROE of 13.3%. Growth was also supported by new partnerships and digital rollouts, including platform enhancements and the use of Gen AI. The bank maintained a robust CET1 ratio of 17.3% and a CAR of 20.9%, reflecting highly disciplined capital management by both European and Nordic banking standards.

Finland

Nordea

Returning to the top spot as our Best Bank in Finland, Nordea reports a record €478 billion in AUM in 2025, up 13% YoY. With an ROE of 15.5% and a CET1 ratio of 15.7%, this profitable, efficient universal bank drew its 2022-2025 strategy to a successful close. That included receipt of approval from the Finnish Competition and Consumer Authority for a partnership with domestic rival OP Financial Group to combine efforts in solving consumer and business payments challenges.

France

Groupe BPCE

Groupe BPCE’s net banking income was up an impressive 10% YoY to €25.7 billion in 2025; while gross operating income rose some 22% to reach some €8.4 billion. Bolstered by a CET1 ratio of 16.5%, the banking group employs 100,000 staff, serving 35 million customers worldwide, including consumers, professionals, companies, investors, and local authorities. The banking group says it plans to recruit 16,000 employees in 2026, including 10,000 in the Banques Populaires and Caisses d’Epargne networks. Nearly half of these recruitments will target young people, as part of the bank’s partnership with state-run agency France Travail.

Germany

Commerzbank

Another year, another record net income, and another win for Commerzbank—our Best Bank in Germany for the fourth year running. Net income for the first half of 2025 was up 0.9% to €1.3 billion; while total assets reached €582 billion, and total revenues rose 12.5% to €6.1 billion. Despite a dip in the bank’s CET1 ratio to 14.6% and its ROE to a low 8.1%, Commerzbank improved its cost-income ratio to 56% while absorbing €534 million in restructuring expenses. The Frankfurt-based financial institution continues to fend off a UniCredit takeover, a move the Italian giant has pursued since 2024. With almost 40,000 employees, Commerzbank’s ESG goals include net-zero operations by 2040 and portfolio neutrality by 2050.

Greece

Eurobank

Our winner continued its run in Greece; Eurobank achieved remarkable growth across loans, deposits and AUM in the first half of 2025—rising YoY by €5.3 billion, €4 billion, and 30%, respectively. Domestic assets reached €62.8 billion, supported by €37.3 billion in gross loans and €45.2 billion in deposits. Beyond the balance sheet, the group leveraged its performance to drive social impact, strengthening its startup incubator and funding significant public-school renovations. Notably, Eurobank leads its peers with over €6.9 billion in sustainable financing and an upward trend in Article 8 AUM, now exceeding €230 million. Article 8 funds are predominantly ESG compliant. The bank’s market-leading position was further solidified in 2025 through its acquisition of Eurolife’s life insurance business.

Iceland

Arion Bank

Arion Bank may be on the smaller side of the three major Icelandic banks, but what it lacks in size it made up for in efficiency and performance in 2025. The bank reports group AUM of 2 trillion Icelandic kronur ($15.9 billion), net earnings of 30.6 billion kronur, an ROE of 14.9%, a cost-income ratio of 42.3% and a CET1 ratio of 18.4%. Arion Bank’s service offering creates a broad revenue base, with a loan portfolio that is well diversified between retail and corporate customers. The bank is in merger discussions with Kvika Bank, currently the country’s fourth-largest bank, under which terms Arion Bank’s existing shareholders would hold 74% of the combined entity. The merger, which is expected to complete in late 2026, would be one of Iceland’s largest.

Ireland

AIB

AIB returns for a third year running as our Best Bank in Ireland. Serving a customer base of over 3.3 million, the Emerald Isle’s biggest bank posted a solid first half, with a €927 million profit after tax and a 21.4% return on tangible equity (ROTE), bolstered by a robust 16.4% CET1 ratio. 2025 saw the bank return to full private ownership, as well as the launch of its new slogan, “For the life you’re after,” encapsulating its commitments to customers, community, and sustainability.

Italy

UniCredit

Our Best Bank in Italy for the third consecutive year is UniCredit. While gross revenue moderated 3.1% to €11 billion, Italy remains the undisputed earnings powerhouse of the UniCredit group, contributing 41% of the total €10.6 billion net profit. With a unique Pan-European footprint and group assets reaching €870 billion at year-end 2025, UniCredit leverages its stability and low risk exposure to lead the continent’s green transition. The bank is making significant strides toward its 2050 net-zero target, notably through its €11.3 billion in environmental lending and the issuance of €6.5 billion in green bonds since 2021. In 2025, UniCredit deepened its domestic ESG impact through initiatives like Salotti Energia to build ESG awareness among Italian corporates and the One4Planet, Water Management loan. Furthermore, its Banking Academy Italy continues to drive social value, launching the Conta per Me primary school program and advanced fraud prevention training to protect the domestic retail base.

Lichtenstein

LGT

Liechtenstein’s largest player, LGT, continues its six-year unbroken winning streak. Total operating income increased 10% YoY to over 1.4 billion Swiss francs (more than $1.7 billion) in the first half of the year, group profits surged 38% to 240.6 million francs, and AUM reached 359.6 billion francs. While the bank trimmed its cost-income ratio to 75.7%, the figure remains high. Offsetting this is an impressive 18.5% CET1 ratio, reflecting the superior capital strength of this bank owned by the country’s royal family.

Luxembourg

BGL BNP Paribas

Our winner in Luxembourg, BGL BNP Paribas, reported first-half 2025 revenues of €315 million, up from €300 million for the same period in the previous year. With almost 2,100 employees in the Grand Duchy of Luxembourg, the bank provides universal services with a strategic emphasis on corporate and institutional clients. With deep regional roots dating back over a century, BGL BNP Paribas remains a cornerstone of Luxembourg’s economic landscape. Looking ahead, the bank is set to be a key driver of the group’s transition strategy, targeting 90% low-carbon energy financing by 2030.

Malta

Bank of Valletta

Malta’s banking sector remains highly concentrated; and with a 41% market share and total assets of €15.6 billion as of first-half 2025, Bank of Valletta is the most dominant domestic and commercial player in the sector—as well as our 2026 Best Bank in Malta. While the group registered a first-half profit before tax of €135.1 million (slightly down from €148.2 million in first-half 2024), return on average equity stood at 18.9% and CET1 ratio at 21.3%—a breakwater typical of the Mediterranean island.

Monaco

CFM Indosuez Wealth Management

Although its net income for 2024 fell slightly to €59.4 million, a 2.4% decrease from 2023, CFM Indosuez Wealth Management remains the leading player in Monaco. Despite lower interest rates and an unstable geopolitical context, wealth under custody grew 8.4%. “Customer business grew significantly, underpinned by strong new business momentum, a satisfactory performance in market activities and continued robust loan production.” Revenue increased 1.1% to €199.4 million driven by dynamic transactional business, though performance was impacted by a 2.1% rise in operating expenses due to inflation.

Netherlands

ING Group

Amid ongoing geopolitical uncertainty, the CEO of ING Group, Steven van Rijswijk hailed 2025 as a year in which the major global bank consistently executed its “strategy of accelerating growth, increasing impact and further diversifying income by doing more business with more customers and clients.” And so, returning for a third consecutive year, ING is once again our winner in the Netherlands, delivering strong commercial growth in its European base while achieving €23 billion in total income across the group. This was supported by an uptick in the bank’s customer base and a 15% rise in fee income to €4.6 billion. Commercial net interest income meanwhile came in at €15.3 billion. Achieving €56.9 billion in lending growth—more than double that of the previous year—ING’s net result for the year was broadly stable at €6.3 billion. The bank reports a 13.2% ROE and a 13.1% CET1 ratio. Of all its major markets, the Netherlands was a key driver and contributor to the bank’s growth in 2025.

Norway

DNB

Keeping its crown as the Best Bank in Norway for the fourth year in a row, DNB remains the dominant player in its home market, balancing massive scale with high profitability. Offering a full suite of retail, corporate, and investment banking, DNB maintained a strong reputation over the year, reporting an annualized ROE of 15.6%. Profits rose by 1.5% in the first half of 2025 to 21.3 billion Norwegian kroner ($2.1 billion), driven by solid performance across the group, and supported by a Norwegian economy that held up well in an unpredictable global environment. In 2025, the bank completed its 12 billion Swedish kronor ($1.2 billion) acquisition of Carnegie, a Nordic asset manager with 850 employees, strengthening DNB’s position in investment banking and wealth management.

Portugal

Banco Santander Totta

In Portugal, it is another consecutive win for Banco Santander Totta, which continued its growth strategy in 2025 via rigorous commercial and operational optimization. In a year defined by falling interest rates, it remained the most profitable bank and a benchmark for efficiency, posting a 31.8% ROTE and a 28% efficiency ratio while achieving a net profit of €963.8 million.

During this time, the bank continued to grow its customer base, particularly in high-value segments. Active customers increased by 40,000 to more than 1.9 million; while digital customers rose 5.1% to over 1.3 million, now representing 68% of the total base. This growth translated into a growth in commercial activity, with over 100,000 new accounts opened, 1.3 million daily transactions (up by 9.7%), and more than 327,000 new cardholders added.

Sweden

Swedbank

Swedbank had another successful year, with an ROE higher than the bank’s target of 15%—and according to president and CEO Jens Henriksson, “proof that our business model works.” The bank’s Swedish operations account for 71% of the group’s customer base; overall it serves a total of 7.3 million private customers and 545,000 corporate customers across Sweden, Estonia, Latvia, and Lithuania—offering loans, savings, payments, insurance, and daily banking services. In 2025, digital investments contributed to uptime of 99.9% for Swedbank’s app and internet bank for Sweden and the Baltic countries. This is a key focus for the bank as it sets out to improve its customer experience, with the aim “to make it easy to manage everyday matters digitally.”

Switzerland

UBS

For the sixth consecutive year, UBS has earned our Best Bank in Switzerland distinction. Throughout 2025, the bank remained laser focused on the Credit Suisse integration, which is slated for substantial completion by the end of 2026. A disciplined approach yielded a $7.8 billion net profit, supported by a solid 14.4% CET1 ratio, despite an 81.1% cost-income ratio.

CEO Sergio Ermotti attributed this performance to a “global, diversified franchise” that helped clients navigate market volatility. He further highlighted the bank’s digital evolution, noting that transformational AI projects are successfully bolstering operational resilience and improving client experience. As the Credit Suisse integration enters its final stages, industry attention is shifting toward the leadership transition following Ermotti’s planned 2027 departure.

United Kingdom

HSBC

HSBC is our Best Bank in the UK for the second consecutive year. HSBC UK employs 18,000 full-time staff across the country, serving over 15.3 million customers. For the year ending December 31, 2025, it posted a profit before tax of £5.6 billion ($7.5 billion). Revenue increased by £489 million, or 5%, to £10.5 billion, driven by higher net interest income. The bank’s ROTE of 19.2% was one percentage point lower than 2024, driven by growth in commercial lending. Supported by a 13.2% CET1 ratio and an 175% liquidity-coverage ratio, the its balance sheet remained resilient against a challenging economic backdrop.

Tan Su Shan, CEO and director of DBS Group—winner of this year’s Best Bank in Asia-Pacific—discusses the benefit of AI investments.

As global banks navigate trade fragmentation, AI disruption and volatile markets, DBS continues to distinguish itself through strong profitability and an aggressive technology strategy.

In this conversation with Deputy CEO Tan Su Shan, the bank’s leadership discusses how DBS surpassed $100 billion in market capitalization, scaled AI across hundreds of use cases and positioned itself to benefit from shifting intra-Asia trade flows.

Tan also outlines the challenges posed by tariffs, foreign-exchange swings and the accelerating evolution of generative and agentic AI as DBS looks toward 2026.

Global Finance: What factors shaped your bank’s performance in 2025?

Tan Su Shan: We delivered a solid financial performance in 2025, reflecting the resilience of our diversified franchise. Our total income and profit before tax hit new highs of S$22.9 billion ($18 billion) and S$13.1 billion, respectively. Return on equity  (ROE) was 16.2%, within our medium-term target and several percentage points above our local and global peers.

A big part of our success was being well-positioned to capture structural growth opportunities arising from the shifting macro landscape, including rising intra-Asia trade and investment flows, as well as new trade and supply corridors between Asia and other regions such as Europe.

GF: What role did Al play in that performance? 

Tan: We aim to sustain our leadership as an AI-enabled bank with a heart, using technology to deliver a competitive advantage while creating tangible impact for customers.

We have industrialized AI at scale, deploying more than 430 use cases—four times 2021 levels—powered by over 2,000 sophisticated models. These have delivered measurable outcomes, including stronger risk management, improved controls, and productivity gains. In 2025, our data analytics and AI/ML initiatives generated approximately S$1 billion in economic value.

Building on this foundation, we are embedding Gen AI and Agentic AI into customer journeys and internal workflows. Horizontal capabilities such as our DBS-GPT proprietary generative AI platform provide role-based access to millions of internal documents, accelerating decision-making and problem-solving. Vertical solutions such as DBS Joy, our Gen AI-enabled chatbot, deliver always-on, high-quality customer support at scale, improving customer satisfaction by 23% while handling more than 235,000 AI-powered interactions. Together, these capabilities lift productivity, decision quality, and customer experience by combining machine intelligence with human judgment.

GF: Which milestones did DBS reach in 2025? 

Tan: It was a landmark year for DBS, notwithstanding global volatility, and the market’s confidence in our franchise has never been clearer. We surpassed the $100 billion market capitalization milestone in June and closed the year at $124 billion, cementing our position among the top 25 banks globally.

Moving ahead, we remain focused on building a resilient, growth-oriented, and future-ready market leader, anchored by our three strategic moats of trust, data, and culture.

GF: What was 2025’s greatest challenge for DBS?

Tan: Undoubtedly, our greatest challenge was the onset of tariffs following Liberation Day and the market volatility that followed. When you layer on headwinds from interest rates and significant FX fluctuations, you create a perfect storm we had to navigate. Despite these pressures, DBS delivered a solid financial performance. We achieved this by being proactive with our balance sheet hedging, securing record deposit inflows, and maintaining a sharp, strategic focus on high-ROE businesses such as wealth management.

At the same time, technology continued to move at a breathtaking pace, especially with the rapid shift toward Gen AI and Agentic AI. Fortunately, we weren’t starting from scratch, as we have been working with AI for more than a decade. Our early and sustained investments in data and technology gave us the robust foundation needed to industrialize AI across hundreds of meaningful use cases, positioning us to move quickly as the techno-logy evolves.

GF: Does 2026 present new challenges?

Tan: Our strategic priorities remain intact, and in 2026, we will continue leveraging our core strengths—what we term the “4 Ds”: Dependable, Diversifier, Digital, and Disruptor—to be a beacon of stability for our customers amid heightened volatility.

We have embarked on our vision to become an AI-enabled bank with a heart, transforming our operating models, leveraging machine intelligence, and preserving human empathy to reinforce the trust customers place in us. We will continue scaling our structural growth engines, which remain relevant even in a more bifurcated world.

This includes prioritizing growth in high-ROE businesses such as wealth management, transaction services, financial institutions group, and treasury customer sales. We also remain focused on our six core markets in Asia (Singapore, Hong Kong, India, Taiwan, China, and Indonesia) and on building connectivity between our Western and Asian clients. Strengthening resilience across every organizational layer remains a key, ongoing priority.

Michael Von Bevern of Suntera breaks down how private credit lenders are faster and act more like business partners than banks in a tightening global market.

As traditional banks continue to retreat from risk, private credit is stepping in to provide the speed and execution that entrepreneurs desire. Global Finance spoke with Michael Von Bevern, Global Head of Funds at Suntera Global, about why this “unregulated” sector has become a permanent fixture in the funding landscape.

Global Finance: What are the benefits of being a private credit borrower?

Michael Von Bevern: The big benefit is speed. It can be relatively simplistic, depending on what type of borrowing you’re going for. In a direct-lending situation, like a senior term loan, it is usually simple because your risk profile is clear. For anything less senior, such as mezzanine or subordinated debt, the advantage is that it provides capital without diluting ownership. That’s important for entrepreneurs. They just need cash flow to grow and don’t necessarily want to give up equity. And they don’t want to be taken to the cleaners for raising equity. In those cases, mezzanine or subordinated debt can be a really effective solution.

In our business, we see a lot of NAV (Net Asset Value) lending, where a fund’s assets serve as collateral. This helps borrowers boost returns and navigate tricky markets, especially when raising equity is difficult. I also see a lot of action in specialty finance, or the asset-based lending space. The borrower is unlocking liquidity at usually more favorable rates than going to banks.

GF: Are banks really that cumbersome?

Von Bevern: Well, they don’t take risks. That’s not what they do. They bet on sure things, whereas in our industry, we fill the gap for high-growth companies seeking custom, quick solutions. We have a lender at Suntera — Carlyle Group. They’re extremely helpful. It’s like having a business partner.

GF: You wouldn’t get extra assistance with, say, JPMorgan Chase or Morgan Stanley?

Von Bevern: We bank with JPMorgan here in the U.S. Don’t get me wrong — I love JPMorgan. But, they’re not the risk-takers. If you need speed, if you need execution quickly, banks aren’t known for that. Specialty lenders — whether focused on a particular sector or type of credit — can move much faster than a bank. That speed can make the difference in whether a deal gets done. There’s a lot of competition out there, especially with the IPO market drying up. Finding ways to create liquidity and still grow your company is critical. At the end of the day, banks are regulated. These lenders aren’t, so they just view credit differently than your average fund lender.

GF: Is the unregulated party going to end soon?

Von Bevern: I don’t think so.

GF: Why not?

Von Bevern: I’ve been doing this for 20 years, and people have been talking about regulating private credit the whole time. I just don’t see it happening. If you did regulate it, you’d basically be regulating private equity and venture capital, too. What makes it work is that there are highly skilled, disciplined people in this industry who can lend responsibly while helping companies achieve their goals — whether it’s M&A, expansion, or growth. I can’t see regulation coming in and dampening that.

GF: How do you pay back a private credit lender like Ares, Blackstone, KKR, or Carlyle?

Von Bevern: I can’t speak to the Carlyle loan specifically, but in general, we see lots of different loan agreements as a fund admin and loan agent. The key thing is flexibility—these agreements are designed for repayment, but they give you options: payment-in-kind (PIK) interest option, rollovers, and adjustable-to-fixed contracts. They’re structured to support your growth while giving you room to navigate the business.

GF: So, with Suntera and Carlyle, is there someone on the ground at Suntera who can offer expertise or perspective, given how sector-specific it is?

Von Bevern: I can’t speak to Suntera and Carlyle, but large private credit lenders work across multiple industries and verticals. That means when you’re in a specific sector and need liquidity, they bring a wealth of experience from similar companies. They can act almost like a business partner — advising on how you use the proceeds, what your expected returns might be, and even on covenants in loan agreements.

Over the years, I’ve seen lenders in areas like recycling, renewables, and reusability not only provide capital but also offer extensive guidance about the business itself. It’s similar to what private equity would provide — but without the dilution.

GF: Wouldn’t these companies get money from a traditional bank if they could? And are these companies already a credit risk?

Von Bevern: There’s some risk in every loan. The less risky borrowers are usually the ones banks handle. Banks set strict guardrails and count on repayment. Private credit, on the other hand, often funds the next level down or borrowers that need speed of execution that banks can’t offer. The risk depends on the loan structure — whether it’s collateralized or uncollateralized, senior or mezzanine — and is managed through interest rates, covenants, and other terms.

Looking ahead, we’re approaching a refinancing cycle that will make the embedded risk in today’s market clearer — probably by the end of 2027. Even so, defaults remain rare, and most borrowers are likely to refinance without issue. Of course, there will always be cases, like Blue Owl, that attract attention, but those don’t indicate a broad crisis.

GF: U.S. small business insolvency filings jumped 67% year over year. Many point to inflation, geopolitical instability, and tightening credit as key factors.

Von Bevern: A few years ago, when interest rates were historically low, it was easier to match lenders with portfolio companies in a way that worked for both sides. Today, with interest rates much higher, we’re entering a cyclical period that naturally creates stress for these businesses. Your stat isn’t surprising, but structurally, the market remains sound. It’s also hard to know how many of these insolvencies were directly due to loans or credit constraints.

GF: The European Central Bank’s fourth-quarter data shows euro-area banks are tightening credit standards. Are you seeing private credit growth globally as a result?

Von Bevern: The expansion of private credit is definitely a global trend. We operate in the U.K., the Channel Islands, the U.S., Singapore, Hong Kong, the Bahamas, and other markets, and the trends are similar across regions — interest rates have risen everywhere. Even with higher rates, defaults haven’t spiked as some might have expected. Lending today is often collateralized, not just unsecured, and large funds, like BlackRock’s $20 billion credit fund, are expanding the pool of borrowers, which naturally introduces a wider spectrum of risk — but that’s manageable. Competition among private lenders has increased significantly, thanks to abundant dry powder and a mature, experienced market. Looking ahead, the refinancing cycle over the next year or two will be interesting to watch, but I don’t see it as a systemic problem.

GF: Should ETFs, retirement accounts, and pension funds incorporate private credit companies?

Von Bevern: They already are. Private credit exchange-traded funds (ETFs) are definitely among the fastest-growing segments of the business. And they can be either directly with the lender or the stock of a company that does a lot of private credit lending. So it’s a sort of direct and indirect way to get into the ETF part of it.

GF: So you’re clearly bullish about private credit. Is there anything you’re bearish about?

Von Bevern: Going into 2026, I expected it to be a strong fundraising year. There’s a lot of dry powder, and many managers still have to fully invest the funds they raised in prior years before starting new ones. Overall, that made me bullish.

What concerns me is emerging managers. With so much dry powder flowing to established names, it’s harder for new managers to raise funds. It’s going to the sort of household names. Intense selectivity and abundant opportunities are making it harder for emerging managers in our space to gain attention. It’s not that they can’t be successful; there just won’t be that many of them. I’ve worked with hundreds of emerging managers over my career, and many struggle to get off the ground even with strong pedigrees.

Emerging managers often provide more specialized attention to portfolio companies, which can translate into better returns. If this segment struggles, it could constrain that part of the alternatives market. But hopefully this too will pass.

Editor’s note: This interview has been edited for length and clarity.

The card company has positioned itself as a bridge between its global network and on-chain payment systems.

For a technology that’s designed to leave traditional finance on the sidelines, credit card payment networks are making significant investments in stablecoins.

Mastercard’s announced acquisition of BVNK, an enterprise stablecoin infrastructure provider, could usher in a new era of digital expansion for the legacy payments company. According to Mastercard, the deal’s final price tag could reach $1.8 billion by the time it closes at the end of 2026.

During last week’s first-quarter earnings call, Mastercard CEO Michael Miebach cited BVNK’s ecosystem of stablecoin stakeholders and liquidity providers as the primary driver for the acquisition, with a portfolio of hard-to-get licenses sweetening the deal. Once the sale is finalized, Mastercard will integrate BVNK’s tools to handle digital cross-border payments, merchant transactions, and multi-asset trading directly within its own system.

Meanwhile, rival Visa continues to expand its stablecoin-linked Visa card program.

“We now have over 160 stablecoin card programs globally with key partners, such as Rain, Reap, and Bridge,” said Visa CEO Ryan McInerney during the company’s first-quarter earnings call in January. “And our payment volume continues to grow at a very strong rate, up nearly 200% year over year in the second quarter.”

Credit Card Cannibalization

These investments raise the question of whether card networks risk cannibalizing credit card transactions by investing in a disruptive alternative payment rail like stablecoins.

“Card networks and the largest card-issuing banks take a long-term view to maximize market share and earnings while preserving ‘options’ to integrate new and disruptive technology into their existing platforms and customer base,” said Todd H. Baker, a senior fellow at the Richman Center for Business, Law and Public Policy at Columbia University’s Business and Law Schools. “They seek to be ready if and when customers demand it.”

Aaron McPherson, principal at executive advisory firm AFM Consulting, also downplayed the cannibalization threat. “The card networks still control the merchant relationship and will act to ensure there is no inherent advantage to using stablecoins over traditional rails.”

McPherson also shares the card companies’ view that stablecoins are primarily a domestic settlement mechanism. “Even when consumers spend stablecoins directly, the vast majority of transactions occur via linked debit cards, ensuring Visa and Mastercards still collect their fees.”

Crossing the Stablecoin Bridge

The card networks see stablecoins as complementary to their core offerings. Credit cards are easy to use, widely accepted worldwide, and integrated into the transaction flow, said McInerney. But of the $13 trillion transactions settled among and between Visa’s nearly 14,500 financial institution partners, nearly all are settled in fiat currency Monday through Friday.

On the other hand, those using stablecoins can complete transactions seven days a week, which provides immense liquidity and efficiency benefits, he added.

The card companies are positioning themselves as a bridge layer between their global network infrastructure and on-chain payment systems like stablecoin. By making these investments, Mastercard has been able to “build out a whole set of new services and additional opportunities,” said Miebach during the earnings call.

Visa is also taking a Visa-as-a-Service approach and engaging with the stablecoins stack at various levels. These bridging solutions have economics similar to the company’s current products, McInerney said.

These strategies have paid off for the card companies. Visa has a $7 billion annual run rate of stablecoin settlement volume, which is up more than 50% since last quarter.

Canada leads the creation of a multilateral defense bank, coinciding with a commitment to increase defense spending to meet NATO benchmarks.

Earlier this spring Canada hosted representatives from 18 countries to establish the Defence, Security & Resilience Bank (DSRB).

The initiative aims to create a multilateral AAA-rated bank that can provide loans to allied governments and allow countries to borrow directly from the institution at a lower cost. Backers of the proposed DSRB want it to become a global state-backed institution capable of raising $135 billion to fund defense projects.

Its backers have modeled the DSRB on existing multilateral lending institutions, such as the World Bank. The founding member-states, who, as shareholders, would own the DSRB, will capitalize the bank, providing an equity base that allows the bank to raise additional funds on global capital markets at favorable rates.

This, in turn, will enable the DSRB to provide long-term low-cost financing for member governments, supporting the increase of their national defense and resilience capabilities. Also, the DSRB would unlock private capital for the defense sector by providing institutional guarantees to commercial banks, lending to private defense firms, reducing risk, lowering interest rates, and increasing overall financing available to the industry.

Banks, Governments Rally — Some European Powers Hesitate

In Canada, the Big Six Banks, including BMO, CIBC, National Bank of Canada, RBC, Scotiabank, and TD Bank, have signed on. Major global banks, including Commerzbank, Deutsche Bank, ING Group, and JPMorgan Chase, have also signed on.

“Canada is committed to advancing the DSRB and by extension strengthening partners’ resilience in a shifting geopolitical landscape,” François-Philippe Champagne, Canada’s Minister of Finance and National Revenue, said in a prepared statement.

Not all major European governments support the project, however.

German and UK officials have said they will not back the DSRB, according to published reports. Germany argues that defense financing should run through existing EU mechanisms, while a British government source raised concerns that the DSRB may not meet the UK’s goal of getting more value from defense spending.

Unlike traditional financing methods, the DSRB enables member states to collectively borrow at lower interest rates and aims to streamline defense procurement processes. This initiative also coincides with Canada’s recently announced Defence Industrial Strategy, which includes a commitment to increase defense spending toward NATO benchmarks.