Emerging-nation banks are out-performing their Western counterparts, in relative terms, as a result of a growing class of affluent customers in those nations, a study by Boston Consultancy Group said.

The report said that in addition to developing nations’ budding wealth, interactions with new customers, individuals and businesses conducting banking transactions for the first time, are boosting banking revenues.

The study ranked banks according to their market capitalisation, revealing that Asia-Pacific banks captured almost 36 per cent of global market cap.

Whereas Western European banks’ average market cap plummeted 58 per cent from 2007 to 2011, compared to the global banking sectors loss of 34 per cent of total market cap in that time.“Emerging-nation banks are doing better for two simple reasons,” said Richard Huang, a BCG partner based in Beijing. “First, they are benefiting from the enormous numbers of customers and businesses who, for the first time in their lives, are starting to open bank accounts, take out loans, and participate in other banking interactions. Second, there’s a growing class of affluent and wealthy customers in those populations who help boost banking revenues.”

The report found that the value shift has rearranged the rankings of the world’s top banks – China and North America dominated the top ten positions but Euro-zone entries are slipping, claiming only 2 banks within the top 30 by 2011.

According to Dayong He, a Beijing-based BCG principal, Mainland China is currently one of the most attractive markets. He stated that, “Domestic banks should seize the opportunities in China’s fast-growing banking market, strengthen the foundation for their domestic businesses, and establish leading positions in the domestic market. Globalization is not a necessary option for many banks.”

He added that, “For domestic banks that pursue globalization, today’s lower valuation of the global banking sector and the refocusing trend in some international banks provide a better M&A opportunity. Domestic banks can also be selective in expanding their businesses in emerging markets that enjoy a strong vitality.”

In light of economic slowdown and interest rate liberalisation, Huang further added that while China’s banking industry seeks new business growth opportunities, it is imperative for its banks to “reconsider their strategic direction and adjust their business models.”