The Brand Finance Banking 500, conducted by leading brand valuation and strategy consultancy Brand Finance, and published in the February edition of The Banker, is a league table of the world’s bank brands, ranked by their brand value.
The UK’s bank brands collectively lost 3% of their value this year. NatWest, RBS and Nationwide all saw their brand values fall. Coutts was the worst affected; The Queen’s bank has lost 42% of its brand value in a year.
Standard Chartered was fined $327m by US authorities for violating sanctions against Iran but the reputational impact has clearly had an even bigger impact on its financial position; brand value is down by nearly $2 billion (£1.3bn).
HSBC remains the UK’s most valuable bank brand, with a value of $27.3bn (£17.5bn). Both HSBC and 2nd placed Barclays have registered negligible growth rates of 1.5% and 0.1% respectively. They, along with most UK banks, have been significantly affected by a toughening regulatory regime.
Lloyds was the only one of the Big Four to show strong growth, having increased 16% to $6.9bn (£4.4bn). Brand Finance’s results suggest that CEO Antonio Horto-Osorio has masterminded a successful turnaround. Renovated branches and a refreshed image suggest a new confidence, helping to distance Lloyds from the problems of the company’s recent past.
Recently revived TSB has fared even better and is the UK’s most successful bank brand this year, having grown by over 21%. Its marketing has emphasized not only its competitive rates but also the importance of straightforwardness, trust and heritage. It leads a field of increasingly successful challenger banks, putting more pressure on the established players.
Brand Finance CEO David Haigh comments, “A strong brand builds loyalty, helping to reduce churn. As switching becomes easier and with nimble competitors emerging, some banks may have to rely on the power of their brand ever more heavily to hold onto customers.”
The UK’s Most Valuable Banking Brands
Global Results – Chinese Brands Threaten America’s Banking Primacy
Wells Fargo remains the world’s most valuable bank brand. Following growth of 15%, its total value stands at $34.9bn. Some other US banks have registered respectable brand value growth such as Citi and Chase (both up 7%) while others such as Bank of America (-4%), Goldman Sachs (-7%) and JP Morgan (-15%) are in the doldrums.
JP Morgan chief executive Jamie Dimon recently expressed concerns that overregulated western banks might be superseded by Chinese brands. Brand Finance’s research would appear to bear that out. ICBC has moved from 6th to 2nd place in the rankings, overtaking HSBC which is now in 3rd globally. China Construction Bank, which has already overtaken HSBC in terms of market capitalisation, has grown its brand by 39% to overtake Citi, BoA and Chase. Spain’s Santander has been pushed to the bottom of the top ten by Bank of China and Agricultural Bank of China.
European banks have had an even less successful year than those from the US. Total Spanish bank brand values are down 2%, for the UK the figure is -3%, Italy -5%, Germany -6% and France -19%.
QNB is the most valuable bank from the Middle East or Africa. Its brand value is up 44% to $2.6bn. It exemplifies the rapid growth of many Gulf and developing world bank brands. The top ten fastest growing countries are Morocco (total bank brand value +98%), India (+61%), Nigeria (+52%), UAE (+45%), Colombia (+44%), Qatar (+44%), the Philippines (+43%), Saudi Arabia (+40%), China (+29%) and Bahrain (+29%).
Global Results – The World’s Most Valuable Banking Brands
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