UK banks weather the branding storm better than US counterparts

Last Updated on Thursday, 18 February 2010 16:55 Thursday, 18 February 2010 16:43

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According to BrandFinance the total decline in brand value of the Global Banking 500 is US$209bn since January 2009. But the U.K. has fared better than some, losing just 15% of its value as opposed to 40% in the U.S. HSBC retains its position at the top of the pile despite losing over US$3bn in brand value.

Executive Summary

* 84% of the total loss in brand value is among the top 100 brands.

* 198 brands drop out of the study, reflecting an extremely turbulent year in markets where once famous brands like Lehman Brothers are no more.

* New arrivals perform with greater consistency than the multinational giants; indicative of this report's finding that smaller, more localised financial services are surviving better. The 401st to 500th ranked brands register a US$1.7bn rise in value, in marked contrast to the drastic tumbling in values above them.

* Consumer banks have higher market capitalisation to brand value ratio than investment banks, reflecting the need to connect with the high-street consumer.

* Banks in developed economies register the greatest falls with US brands losing 40% of their overall value and the UK, 15%. The US stranglehold on the Global 500 is loosened; the number of US banks in the study drops by 29 to 95.

* The greatest sector losses are among credit card brands, where the top five lost 34% of their value during 2008.

* Combined, Turkey and South Korea contribute five of the most improved financial brands. * BRIC brands once again performed well. Brazil, Russia and China were three of only five countries whose combined value of brands increased.

Rank					Brand Value (USD $ Millions)		Brand Rating		Market Cap (USD $ Millions)
2010	2009		Name	Country	2010	2009	2010	2009	2010	2009
1	1		HSBC		28,472	25,364	AAA	AAA	-	131,577
2	2		Bank of America		26,047	21,017	AAA	AAA-	111,754	71,228
3	4		Santander		25,576	10,840	AAA	AA-	-	54,881
4	3		WELLS FARGO		21,916	14,508	AA-	AA-	-	108,691
5	7		Citi		14,362	9,810	A	A-	-	36,498
6	8		BNP Paribas		14,060	9,360	AA-	A+	-	49,480
7	17		Goldman Sachs		13,887	6,753	AAA	AA+	-	36,361
8	10		Chase		13,400	8,747	AA-	A	-	52,571
9	12		Bradesco		13,299	7,698	AA+	AA-	-	29,794
10	14		Barclays		13,134	7,583	AA-	BBB+	-	19,998
11	6		American Express		12,737	9,944	AA-	AA-	-	25,866
12	5		ICBC		12,083	10,031	AA	A	-	186,089
13	9		China Construction Bank		12,076	9,024	AA	AA-	-	127,443
14	11		JP Morgan		11,732	8,072	A+	A+	-	48,571
15	26		Sberbank		11,729	4,531	AA	A+	-	19,616
16	20				11,580	5,852	A+	BBB+	-	25,288
17	19		BBVA		10,727	6,008	A+	A	-	39,039
18	18		Deutsche Bank		9,862	6,703	A+	A+	-	19,781
19	16		Bank of China		9,615	7,053	AA-	AA-	-	107,672
20	13		Credit Suisse		8,430	7,668	AA-	AA	-	32,484
21	31		UniCredit		8,342	3,103	A	BBB-	-	15,389
22	15		UBS		8,261	7,568	A+	A+	-	37,889
23	25		Morgan Stanley		7,907	4,775	A	A	-	15,399
24	24		Standard Chartered		7,332	4,780	AA+	AA	-	16,820
25	22		Banco do Brasil		6,911	5,593	AA+	AA	-	32,230

For the full listing, visit The Brand Directory