European banks continue to prosper in 2005. The French newspaper Les Echos published on 12 and13 July, as it does each year, an annual classification table of the 100 top European banks, based on statistics from the agency Fitch Rating. The general economic environment remained positive in 2005, according to the survey, with a demand for credit from retail banks that remained robust, a profitably situation in investment banking and the whole equation accompanied by a level of lending facilities at historically low levels. Banks were first of all classed according to their Operating return on average equity (ROAE) - the relationship between the operational result on own funds). According to this category, 37 banks are above the 20% profitability level based on operating return on average equity. In terms of net profits, the performance is even more spectacular: 43 establishments are in the black on Return On Equity - (ROE) the relationship between the net result and own equity) by more than 15%. As well as the Swiss giants CREDIT SUISSE and UBS, British and Spanish banks are best places while Italian and German establishments are over-represented at the bottom of the table. The ten top banks are as follows: 1) LLOYDS TSB (United Kingdom): 38.87% in operating return on average equity (ROAE); 25.30% in Return On Equity (ROE); €15.520 bn in own funds - BBVA (Spain): 38.13% in ROAE; 24.05% in ROE; 17.405 bn in own funds - 3) KAUPTHING (Iceland): 33.65% in ROAE; 28.25% in ROE and 2.693 bn in own funds - 4) NORTHERN ROCK (United Kingdom): 33.34% in ROAE; 23.57% of ROE and 2.300 bn in own funds - 5) BARCLAYS (United Kingdom); 29.53% in ROAE; 14.93% in ROE and 28.207 bn in own funds - 6) NATIONAL BANK OF GREECE (Greece); 29.51% in ROAE; 19.34% in ROE and 3.234 bn - 7) BANK OF IRELAND (Ireland): 29.13% in ROAE; 26.49% in ROE in 5.366 bn in own funds; - 8) BANCO POPULAR (Spain): 29.08% in ROAE; 16.51% in ROE and 5.363 bn in own funds; - 9) DEPFA BANK (Ireland): 28.51% in ROAE; 22.68% in ROE and 2,304 bn in own funds; - 10) SOCIETE GENERALE (France): 28.43% in ROAE; 20.90% in ROE and 24.855 bn in own funds. The banks were then classed according to their operating ratio (the ratio between overheads plus depreciation and net receipts from banking) which includes costs within the receipts. Growth in business has enabled banks to attain record profits and to invest and maintain cover for positive costs in 2005, explains Les Echos. The British and Spanish group maintain their reputations in cost control. All the Spanish banks (apart from LA CAIXA) are in the first fifty. The French, however, are underperforming and the major German banks are again at the bottom of the league, the same for the Swiss giants (heavyweights in investment banking in these two groups. The following category illustrates the first ten banks according to their ratio between overheads plus depreciation and net receipts from banking 1) BANK NEDERLANDSE GEMEENTEN (Netherlands): 14.29% of operating ratio; €322 million in operating receipts - 2) DEPFA BANK (Ireland): 26.38%; €815 million; - 3) ANGLO IRISH BANK (Ireland): 26.86%; €977 million; - 4) IKB (Germany): 32.35%; €837 million - 5) NORTHERN ROCK (United Kingdom): 33.23%; €1204 million - 6) MEDIOBANCA (Italy): 35.76% €981 million - 7) KAUPTHING (Iceland): 36.07%; €1306 million - 8) EUROHYPO (Germany): 36.10%, €1501 million - 9) HYPO REAL ESTATE BANK (Germany): 37.73%; €306 million; - 10) BANCO POPULAR (Spain): 39.44%, €2849 million. In conclusion, Alison Le Bras, head analyst rand financial director at Fitch Rating, stated that for 2005 "the most striking feature in 2005 is the gap between best banks, in terms of profitability, and the worst banks, has declined. The general trend was clearly positive for profits, similar to 2004…While improving their performances, the major German banks remain a little behind with regard to their European sister banks. The British are on average the most profitable”. She predicted profits being maintained for 2006 for the main banks, indeed, an improvement, if the environment does not change.