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NEWS2 February 2015

UK bank brands lose out to Chinese

Finance News UK

UK — The UK’s bank brands collectively lost 3% of their value according to the Brand Finance Banking 500 while Chinese brands overtook many major western brands.

NatWest, RBS and Nationwide all saw their brand values fall, although the worst affected was Coutts, which lost 42% of its brand value last year according to the ranking from brand valuation and strategy consultancy Brand Finance.

HSBC remains the UK’s most valuable bank brand, with a value of £17.5bn. Both HSBC and second placed Barclays have registered negligible growth rates of 1.5% and 0.1% respectively. The consultancy said most UK banks have been affected by a toughening regulatory regime.

Lloyds was the only one of the Big Four to show strong growth, having increased 16% to £4.4bn.

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%).

Chinese brands have been gaining ground. Brand Finance’s research found ICBC had moved from sixth to second 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.

Brand Finance CEO David Haigh said: “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 full Brand Finance Banking 500 can be found here.

@RESEARCH LIVE

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