Study of the World’s Most Valuable Banking Brands reveals Chinese Brands Threaten America’s Primacy
- Bank brand study shows Chinese banks overtaking major US names
- Wells Fargo remains the world’s most valuable bank brand
- European banks lost significant value between 2014 & 2015
- GCC and emerging economy bank brands show strongest growth
The Brand Finance Banking 500, conducted by leading brand valuation consultancy Brand Finance, and published in the February edition of The Banker, is a league table of the world’s biggest banks, ranked by their brand value. America’s banks remain the most valuable in the world. 60 American bank brands feature in the global top 500, with a cumulative brand value of $201bn. Wells Fargo is not just the most valuable banking brand in the US, but across the world. Its brand value now stands at just short of $35 billion. However, there is no room for complacency. JP Morgan chief executive Jamie Dimon recently expressed concerns that the western banks that dominate global banking might be superseded by Chinese brands. The results of this year’s Brand Finance Banking 500 would appear to bear Dimon’s fears out; Chinese brands have well and truly arrived. Citi, BoA and Chase, America’s 2nd, 3rd and 4th most valuable bank brands have been overtaken by both ICBC and China Construction Bank. When the world’s bank brands are ranked by the brand value they have added this year, five of the top six are Chinese. China Construction Bank has added more than any other, $7,463 billion since the 2014 study, to reach a total of $26.4 billion. Many other banking brands from emerging economies have performed strongly this year. State Bank of India’s brand value is 62% up of last year, reinforced by its pioneering use of technology. Bradesco has defied the Brazilian economy to post strong growth of 17%. Looking at the change in total bank brand value from last year, the top ten fastest growing countries are Morocco (+98%), India (+61%), Nigeria (+52%), UAE (+45%), Colombia (+44%), Qatar (+44%), the Philippines (+43%), Saudi Arabia (+40%), China (+29%) and Bahrain (+29%). These results highlight the rapid expansion of GCC brands this year. QNB, the most valuable bank from the Middle East or Africa, exemplifies the trend. Its brand value is up 44% to $2.6bn. European banks have been far less successful. Hampered by slow growth in the Eurozone, a majority of brands from Western Europe have actually lost value and some have dropped out of the global top 500 altogether. The total brand value of Spanish brands in the table is ?2%, the UK ?3%, Italy ?5%, Germany ?6% and France ?19%.