Annual league table of Europe's top 100 banks has not yet been hit by the 2007 financial crisis. - French newspaper 'Les Echos' published the first section of its annual league table of the top 100 European banks on Friday 11 July 2008, compiled from Fitch Ratings. The first section lists the top 100 banks according to their return on sales, in other words their operating income/equity ratio, which distinguishes between revenue and operational costs and the risk burden. This is the most suitable indicator for comparison purposes because it rules out operational elements. The study explains that 2007 saw a double whammy for European banks with the end of easy credit and the return of the spectre of bankruptcy. The repercussions of the financial crisis spread beyond 2007 into the first half of 2008. Concern has now spread to housing, raw materials and the economy in general. Despite this downturn, the league table remains 'strangely optimistic' with 14 banks whose return on sales is still above 25%. Anglo Irish Bank (Ireland, second in 2007, is at the top of the league with 36.11%, followed by PKO Bank Polski (Poland; 32.53%), which did not feature in the top 100 last year, Sal Oppenheim Jr. & Co. (Germany; 31.94%), 85th last year, and the Bank of Cyprus (Cyprus; 31.39%) which did not enter the list last year. In total, the net profits of the top 15 banks remain around the €110 billion mark, as in the record year of 2006. Twelve banks earned more than €5 billion, a billion less than a year ago but still four billion more than in 2005. This is explained by the fact that the first half of 2007 was extremely profitable. In general, retail banking in Eastern countries and emerging economies, have weathered the storm that has damaged the star businesses of investment banks. The crisis has rocked the credit markets and the interbank markets, with banks being reluctant to lend to one another. German banks that invested in 'toxic subprime' have been brought back from the brink by their shareholders, for example IKB, Sachsen LB (bought up in the meantime by LBBW) and WestLB. Northern Rock, a British bank not aided by US investment, had to be nationalised because of its reliance on market funding and has slipped from 4th to 96th place. British banks have tended to slip off their pedestal. Lloyds TSB in particular has gone from 1st to 8th. This does not apply to Spanish banks. BBVA, 5th with 30.86%, is the most profitable big European bank, ahead of giant Santander (23.19%), which has climbed up 22 places and is very present in international retail banking. Spanish savings banks, however, which focus more on the domestic market, have lost ground, with the exception of Ibercaja. The economic slowdown and housing slump may change the outlook for Spanish banks. Swiss banking giant UBS is losing money and has slipped from 13th to 97th in the league. Like Barclays and Deutsche Bank, French bank BNP Paribas is weathering the storm well, moving from 30th to 33rd position. French bank Société Générale also made sufficient profits in the first half of the year to carry it through but the impact of the Kerviel scandal sent it from 8th in 2006 to 31st in 2007. Among Dutch banks, ING rose from 21st to 11th. ABN AMRO disappeared from the league after it was bought out by Fortis, Santander and the Royal Bank of Scotland. Fortis has slipped from 28th to 64th due to the sheer scale of the acquisition. Italian banking heavyweights are not shining examples but have emerged relatively unscathed from the financial crisis. Unicredit has gone from 46th to 48th and Intesa Sanpaolo has climbed twelve positions to 76th. Portugal's Banco BPI, not among the top 100 in 2006, jumped straight in at 12th place with returns on sales of 25.68%. (I.L.)