China GSIB 2018 full year results are out and they underline just how formidable these banks will be as they expand globally. Here are a few pointers see CHI, UK, EUR, US, FY-18 Stats
CHI GSIBs are delivering returns well above cost of capital on a sustained basis even though ROE is not their primary goal (ROE > 13%)
CHI GSIB’s are the least leveraged (highest statutory leverage ratios) of all large global banks (SLR > 7%)
CHI GSIB’s have a massive cost advantage over other GSIB’s, (CIR circa 30%) particularly those Asia focused international banks with CIR >65%
CHI GSIB’s maintain steady dividends around 30% NPR with no buy backs, maintaining funds for growth and further investments
Imagine banks that put delivering a well planned long-term growth strategy aligned with state priorities first; do not pay massive salaries and bonuses; have modest payout policies for shareholders and have access to some of the most compelling technology developments in the history of finance.
Now compare that to the situation of the mooted “national bank” champions in Europe.
No contest!