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As it turns out, the death of the Western banking sector has been greatly exaggerated. Several of the leading victims of the subprime crisis continue to haemorrhage money, but other banks in the US and western Europe have rebounded with vast increases in profits: Wells Fargo up an extraordinary $65.4bn, with Credit Suisse and Deutsche Bank both returning to profit in dramatic style. Two banks that have broken into the top 10, Barclays and BNP Paribas, are also among the biggest gainers in terms of profits. Even those that are still losing money, such as Citigroup, Royal Bank of Scotland (RBS) and UBS, have pared back losses significantly.
In fact, the top 25, which recorded an unprecedented $32.4bn loss in last year’s rankings, have returned to make a positive contribution of $19.1bn this year.