Canadian Treasurer
 
 

February 8, 2012

Royal Bank of Canada named Canada’s most valuable banking brand

TORONTO--Brand Finance released its annual Banking 500 report, a study analyzing the financial value of the world’s top banking brands. First published in 2006, the Brand Finance Banking 500 in association with The Banker, incorporates data from all listed companies globally.

Highlights from the report include:

·  Royal Bank of Canada is named as Canada’s top banking brand and becomes the first Canadian bank to rank among the top 20 as 13 Canadian banks place among the Brand Finance Banking 500 most valuable banking brands.

·  TD, Scotia, RBC and BMO all rank among the top 5 global banking brands to have gained the most value, with best-performing TD increasing its value by $2.7 billion (all figures USD)

·  CIBC and National Bank each increased their value by more than a third

·  The 5 biggest Bay Street banks collectively gained $7.9 billion; representing a 32% increase over their 2011 figure

· This increase occurs despite North American banking brand value falling by 5% on the back of very poor performances in America

·  HSBC, the only British bank among the ten of most valuable banking brands, knocks the Bank of America off the top spot in the Brand Finance Banking 500.

RBC is the only Canadian banking brand to place in the top 20 and Canada’s top Banking Brand. All of the Bay Street big five were among the best performing. TD saw the second largest increase in its brand value, gaining $ 2.7 billion over the year. The list of most improved banking values was dominated by the Canadian banks; Scotia, RBC, and BMO all joined TD on the table, with American Express the only non-Canadian bank to make the top five. CIBC and National have smaller brand values, but grew faster than the larger banks - with each seeing brand value grow by more than a third.

Canada ’s reputation for solid regulation and dependable banking is rapidly remaking the image of Canadian banks, and transforming Toronto into a major banking centre. Canadian banks have a strategic opportunity to leverage their strong brands by expanding into new markets and building themselves into truly global players.

The Brand Finance Banking 500 shows that HSBC has leapfrogged Wells Fargo and Bank of America to become the world’s most valuable brand in 2012. This strong performance from the London-based banking giant was a regional exception; European banks performed miserably, making up 16 of the 20 “fallers” on the table.

While Europe continues to be beset by economic uncertainty and the ongoing troubles of the Eurozone; 2011 saw the meteoric rise of the emerging economies reach a crucial tipping point.  Today’s table shows brands from BRIC ( Brazil, Russia, India and China) countries now outnumber their European counterparts among top 20 banking brands.

US banks continued to fare well when compared to their European counterparts, with Wells Fargo holding firm in second position and strong performances from both Citi Group and American Express in sixth and seventh place respectively. With five of the top 10 most valuable banking brands headquartered in North America, the US is recovering from the financial crisis much faster than Europe.

Commenting on this year’s report, David Haigh, CEO of Brand Finance, said: “The past 12 months have proved to be a very turbulent period for banking brands. We have seen a collective decline in brand value amongst the 500 banks in our report of $94.78bn, which means that successes in markets like Canada are not going unnoticed. T he total value of the top 500 banking brands was US$746.7 billion. The size of this number – which is equivalent to the GDP of Turkey – underlines the importance of brand value to international banks and their Governments.”

Edgar Baum, General Manager of Brand Finance Canada added: “Canadian banks have had their brand value increase through a combination of continued profit growth, successful diversification into insurance and wealth management, and expansion into the US and rest of the Americas. The strength that Canadian banks have exhibited in the past 12 months put them on the international stage as leaders.  Now is their opportunity to take advantage of their strength, reputation, and reliable practices to expand their offerings worldwide.  Cautiously of course, but this is one of the ‘once in a century’ opportunities for them to expand from regional institutions to international ones.”

The Brand Finance Banking 500 Top 20 Most Valuable Banking Brands In Association with The Banker  

Rank 2012

Rank 2011

Bank

Country

Brand Value (USD)

Brand Rating

1

3

HSBC

Britain

$27.59 billion

AAA

2

2

Wells Fargo

United States

$23.23 billion

AA+

3

1

Bank of America

United States

$22.9 billion

AA+

4

4

Santander

Spain

$19.97 billion

AAA-

5

5

Chase

United States

$18.96 billion

AA+

6

9

Citi

United States

$18.64 billion

AA+

7

13

American Express

United States

$18.23 billion

AAA-

8

12

BNP Paribas

France

$16.8 billion

AA+

9

6

Bradesco

Brazil

$15.69 billion

AAA-

10

10

China Construction Bank

China

$15.46 billion

AA

11

8

ICBC

China

$15.16 billion

AA+

12

7

Barclays

Britain

$13.55 billion

AA+

13

11

Itaú

Brazil

$13.17 billion

AA

14

14

Deutsche Bank

Germany

$12.9 billion

AA+

15

17

Bank of China

China

$12.86 billion

AA-

16

18

J.P. Morgan

United States

$11.6 billion

AA+

17

19

Sberbank

Russia

$10.77 billion

AA+

18

23

Agricultural Bank Of China

China

$9.93 billion

A+

19

16

Goldman Sachs

United States

$9.33 billion

AA+

20

28

Royal Bank Of Canada

Canada

$8.65 billion

AA+

21

31

TD

Canada

$8.55 billion

AA-

31

44

Scotiabank

Canada

$5.72 billion

AA

33

47

Bank of Montreal

Canada

$5.36 billion

AA-

40

55

CIBC

Canada

$4.56 billion

AA-

 

 

 

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