Brand Finance sets the standard on the strength, brand value, risk and future potential of brands in finance

The London-based world’s leading band valuation consultant, Brand Finance, published the Top 500 Global Banking Brands for 2009 last month. TopForeignStocks.com has published an abstract and gives access to the full report.

What follows below is the Top 500 Global Banking post on the subject matter, which interest me as I am starting to work on new ideas for the Annual Report in 2009. Questions to be raised are: shall I consider the top 5 or go down to the top 10? what about testing the reporting of these blessed ones against those in other sectors that were doing a magnificent work before the crisis arose? Your comments are most welcomed on this.

“Brand Finance has published this annual report since 2006 in partnership with The Banker magazine, entailing a list released annually and based on data from the world’s largest stock exchanges. Each brand is assigned a ” brand rating: a benchmarking study of the strength, risk and future potential of a brand relative to its competitor set as well as a brand value: a summary measure of the financial strength of the brand”.

HSBC LogoBrand Names – Why are they important?

According to Brand Finance:

“Brands are the most valuable intangible assets in business today. They drive demand, motivate staff,secure business partners and reassure financial markets. Leading edge organisations recognise the need to understand brand equity and brand value when making strategic decisions.”

The following table lists the Top 20 Global Banking Brands for 2009:

Rank Bank Ticker Country Brand Rating
1 HSBC HBC UK AAA+
2 Bank of America BAC USA AAA
3 Wells Fargo WFC USA AA
4 Santander STD Spain AA
5 ICBC N/A China A+
6 Ameican Express AXP USA AA
7 Citibank C USA A
8 BNP Paribas BNPQY France AA-
9 China Construction Bank CICHF China AA
10 Chase JPM USA A+
11 J.P. Morgan JPM USA AA-
12 Banco Bradesco BBD Brazil AA
13 Credit Suisse Group CS Switzerland AA+
14 Barclays BCS UK A-
15 UBS UBS Switzerland AA-
16 Bank of China BACHF China AA
17 Goldman Sachs GS USA AAA-
18 Deutsche Bank DB Germany AA-
19 BBVA BBV Spain A+
20 Societe Generale SCGLY France A-

Note: AAA = Extremely Strong, AA = Very Strong, A = Strong

Key points from this year’s report:

1.Chinese bank brands are becoming powerful as two of these brands are in the list above.

2. The brand value of developed market banks have fallen more than other banks. US and UK banks have lost 40% and 15% of their brand value respectively.

3. The total number of US banks in the top 500 list has dropped to 95 banks this year.Seven US banks are in the top 20 list which is very interesting since the credit crisis started here many more banks have been shutdown by regulators than any other country.

4. HSBC (HBC) received the highest ranking with a brand value estimate of $25.3 billion and the highest brand rating of AAA+. As the “World’s Local Bank”, HSBC provides customized high quality services in its retail division tailored to each region where it operates. After holding up relatively well compared to other British banks, HBC last week announced a cut in dividend payout by 29% for the year and a rights issue.

5.The only emerging markets bank in the top 20 is Banco Bradesco (BBD) from Brazil other than the two Chinese banks.

6.Spanish bank Santander(STD) will become the 3rd largest private sector bank in Brazil after merging its operations with Banco Real.

7. Financial institutions such as American Express(AXP), Citibank(C), Bank of America (BAC) still have high brand premiums though their market capitalizations have reduced significantly.”

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