Best bank
HSBC HSBC?s strength across all business lines, as well as its size and presence, make it the best bank in the region. It is not only the best debt house and best at risk management, it is also a leading cash management bank, retail bank and Islamic bank.
HSBC is strong in all the biggest regional markets, such as Egypt, the United Arab Emirates, and Saudi Arabia, through its affiliate Saudi British Bank, the best bank in Saudi Arabia for the second year.
Arch-rival Citigroup, although still a powerful force, seems to be fading from prominence.
There is, though, no shortage of competition. BNP Paribas, with its solid franchise in markets such as Lebanon and Iran, is increasingly a force to be reckoned with.
The French bank was one of the most active debt houses in the region and is a leading regional foreign exchange market player. It was also recently granted a licence to operate in Saudi Arablia along with Deutsche Bank and JPMorgan.
But no bank in the region can yet claim to be as strong in as many markets or products as HSBC. Peter Koh
Best debt house
HSBC HSBC wins the award for best debt house in the Middle East again this year despite stiff competition from BNP Paribas.
BNP Paribas ranks second in the league tables for syndicated loan deals and fourth for bonds. The French bank has done as many bond deals as HSBC, though their total volume was lower, and has led more project finance deals than its rival.
HSBC, however, which ranks first for bonds and fourth for loans, wins the award because of its leadership role in the most significant transactions.
For example, as joint mandated lead arranger, joint bookrunner, technical bank, insurance bank, long-term Islamic bank, interest rate swap coordinator, offshore account bank, security trustee and escrow agent, the British-headquartered banking group played an unchallengeable central role in the $1.8 billion Umm Al Nar power and desalination plant project in the United Arab Emirates.
That deal, with a maturity of just over 20 years, is the longest-dated financing for a Gulf Cooperation Council state ever.
It was also remarkably complex, with an innovative structure incorporating long-term, short-term, Islamic, and equity bridge financing.
Many other banks played a part in the deal, including Bank of Tokyo-Mitsubishi, which acted as the global coordinator, and Gulf International Bank, the regional syndication agent, but HSBC?s numerous roles and its structuring of the risk management mean it stood out.
HSBC has also continued to lead the most innovative and significant bond deals.
As well as the State of Qatar?s $700 million Islamic bond, the largest and longest dated of its type to date, HSBC led the first ever unsecured corporate bond issue in the region, for Emirates Airline, which at $500 million is also the largest ever unrated airline issue. With Morgan Stanley, HSBC led the largest ever bond issue by a Middle Eastern bank, a $500 million deal for Emirates Bank International.
HSBC is also one of the only international banks to play an active role in domestic debt markets across the region.
Best at risk management
HSBC Analysis of Euromoney?s May 2004 foreign exchange poll, the largest of its kind ever, shows that in key areas such as structured FX-linked products and strategic risk management advice, HSBC is the clear leader according to regional respondents.
BNP Paribas is a distant second, and Citigroup fails to make it to the top five, ranking behind UBS and Standard Chartered.
Over the past year, HSBC has also shown its expertise by developing the risk management solutions in several of the region?s most high profile and complex project-finance deals.
Additionally, the group has executed innovative solutions for a variety of corporates and has one of the region?s largest FX and risk management teams.
Best at cash management
Standard Chartered Standard Chartered?s highly rated technology platform for cash management and its web-based electronic payments system are central to its strengths at cash management.
Clients consistently rate the bank?s personnel and expertise above the main regional rivals, HSBC and Citigroup.
Standard Chartered?s business in the region, though still smaller than some of its rivals?, continues to grow fast. Revenues from payments processing in 2003 were up nearly 9% on 2002, despite a pan-regional decline in net interest margins, because of strong growth in volumes. Payment transaction volumes in the Middle East grew by over 60% in 2002.
The bank?s innovative payments and collections abilities, as well as its regional network, helped it to win high-profile pan regional mandates this year for multinationals including Dow Chemicals, Procter & Gamble and RAK Ceramics.
Standard Chartered was also the first bank in the region to offer corporate customers Swift member-administered closed user group facilities.
