The world's banks earned $1.3 trillion in 2022, in "the best period for global banking overall since at least 2007," per a newThe past two years' headlines have been filled with bad news for banks. But the industry as a whole looks astonishingly healthy. Which, if nothing else, is a good reminder to always look past the headlines.on Friday reported that third-quarter revenue was up 21% and income was up 35%, thanks in part to its acquisition of First Republic.
European banks have been making so much money that Spain, the Netherlands, Italy, Hungary, the Czech Republic, Lithuania, and nowBanks in countries bordering the Indian Ocean are doing particularly well, with McKinsey noting that places like Singapore, India, Dubai, and parts of eastern Africa are "home to half of the best-performing banks in the world."
India, Vietnam, Tanzania and Mozambique all have banking industries that are expected to grow at double-digit rates over the full course of this decade.Banks have spent the past 15 years or so struggling not only with would-be disruptors and emboldened regulators but also with the more existential question of how it's possible to make a profit lending money in a world of zero interest rates.
Now that rates are rising back to pre-crisis levels, the banks are like runners who have spent years training at altitude and who now find themselves competing at sea level.Share on facebook