Page 49 - BrandZ Top 100 Most Valuable Global Brands 2014

Section 03 | The Categories
Financial | Banks

Banks – Global

US and European resurgence

drives growth as BRICs slow

More revelations erode trust

It felt like Ground Hog Day for banks.
Regionalization After being stalled by

the Euro crisis, the regulatory reform
Global banks beneited from improving necessary for the formation of pan
economic conditions in North America European banks may now resume.
and Europe. Overall brand value for the
category rose 15 percent. But even as Disruption Banks faced disruptive

inancial results improved and banks technological changes, like mobile
strengthened their organizations, payments and the entry of non-
problems surfaced that slowed renewal banking entities into the category.
of trust.
Reorganizing
Consumers expected that coming out of
and rebuilding
the inancial crisis, and accepting
government rescue, banks would change.
And many did, restructuring their mix of Geography was an important
consumer, commercial and investment consideration as banks considered
banking, reforming internal culture and how to restructure and strengthen

improving customer communication.
their businesses. The Dutch-based
ING separated its insurance and
But even banks that conscientiously banking businesses and reduced its
attempted to reform were hurt by presence in the US and South America
revelations of past misdeeds and the to focus on its operations in Europe and

public rebuke that followed when on certain opportunities in fast growing Top 10 Global Banks
announcements of quarterly results came Asian markets.
with new warnings attached. The public
also expressed anger at banks over high ING’s underlying net earnings improved
levels of executive compensation.
22.2 percent in 2013. Having repaid most Brand
Brand Value
of the bailout received from the Dutch Value Brand
% Change
2014 $M Contribution
2014 vs 2013
When US regulators reviewed the stress government, and nearing completion of
test results that assess a bank’s ability to a restructuring strategy, the bank shifted 1
HSBC
27,051
3
13%
withstand crisis, it failed the US 15%
to a posture it termed, “Think Forward.”
operations of several European banks As many banks narrowed their 2 Citi 17,341 2
30%
and Citi, even as the bank reported its HSBC also streamlined. After trimming geographic reach and business focus,
3
J.P. Morgan
12,356
2
28%
highest annual net income since the 63 businesses over the past few years, France’s BNP Paribas took the opposite
inancial crisis. These other trends also the bank was well positioned in the fast approach, deciding to remain in diverse 4 Santander 11,060 3
20%
impacted the category:
growing markets and in Europe. HSBC lines of banking and accelerate expansion
improved proits, dividends and outside of Europe, particularly to North 5
ING Bank
9,771
3
29%
Regulations The growth of post-crisis capitalization. Net proit increased 16 America and Asia Paciic. BNP Paribas 6 UBS 9,683 2
30%

regulations continued to shape the percent in 2013.
appears in the BrandZM Global banking 7
Barclays
9,536
2
19%
banking industry, with banks category ranking for the irst time
struggling to predict and organize
With the strengthening of Spain’s this year.
8 BNP Paribas 9,453 2
New
for the implications.
economy, Santander planned to expand
its loans to small and medium-size Investment Bank Goldman Sachs Deinition
9
Standard Chartered
9,150
2
-10%

businesses. Based on the improved rebounded with its highest proit in 10 Goldman Sachs 8,400 3
14%
economy in Spain and other core three years, which drove an increase
The bank category, which
markets, including Brazil, Mexico,
in stock price. Standard Chartered, includes both retail and Source: Valuations include data from BrandZM and Bloomberg.
the US and UK and Continental Europe, heavily invested in fast growing markets, investment institutions, is split Note: Global Banks are deined as those who generate more than 40% of revenues outside their home.
Santander reported a 90.5 percent proit experienced its irst proit decline in
into two tables, with the brands Brand contribution measures the inluence of brand alone on earnings, on a scale of 1 to 5, 5 highest.
increase in 2013.
a decade. Most of its income is generated classiied as either global or

by business in Asia, Africa and the
regional. Global banks are
Middle East.
deined as deriving at least 40
percent of revenue from business
outside their home country.

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BrandZM Top 100 Most Valuable Global Brands 2014
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