Chinese banks cement lead in brand rankings, UK report says

Chinese banks have maintained their dominance in a global ranking of the top banking brands, according to a report that has them entrenched in the top four spots.

Brand Finance, a London-based brand valuation consultancy, released the Top 500 Most Valuable Banking Brands report for the 15th year this past week.

Chinese banks accounted for one-third of the total brand value assessed in the report and claimed seven of the 10 top climbers by absolute brand value. Industrial and Commercial Bank of China retained the title of the world's most valuable banking brand with an assessed value of $72.8 billion.

In 2007, there were no Chinese banks within the Top 100 of the global ranking. This year, Chinese banks accounted for a total value of $388 billion, in comparison to $241 billion for US banks. At country level, the US was ranked second.

The research found Chinese banks have been largely impervious to the issues plaguing countries elsewhere in the world. Two-thirds of brands in the ranking have experienced losses while banks in China recorded a healthy 3 percent growth in average brand value.

This was largely attributable to the banking sector's role in China's timely and effective response to the COVID-19 pandemic, which includes regulatory policy adjustments for asset management, wealth management, and inter-banking services, as well as increased investment into digitalization strategies, the study noted.

David Haigh, chief executive of Brand Finance, said: "Chinese banks have scored extremely well in Brand Finance's Global Brand Equity Monitor research this year, ranking highly for attributes such as recommendation.

"This is undoubtedly an effect of China's management of the COVID-19 pandemic, which has allowed its economy to continue functioning relatively unscathed, allowing space for banks to grow further."

Despite a nearly 10 percent drop in brand value from $80.79 billion, ICBC remained the country's biggest bank. It continues to fare well with consumers, regardless of the bank's depreciating brand value. The pandemic has hurt returns on the bank's investment portfolio.

The brand maintained a healthy lead ahead of China Construction Bank (down 5 percent to $59.6 billion) and Agricultural Bank of China (down 3 percent to $53.1 billion), which came in at second and third in the ranking, respectively.

Remarkable addition

China Guangfa Bank was described as a remarkable addition to the country's bank brand portfolio, entering the ranking for the first time in 84th spot and valued at $3.3 billion, according to the report. The Hong Kong Monetary Authority recently granted China Guangfa Bank a banking license, widening its footprint outside the Chinese mainland.

Five US banks ranked in the top 10, with Bank of America the highest in fifth place, and JP Morgan being the only bank in the top 10 to record brand value growth, up 3.2 percent.

As governments around the world have scrambled to stimulate economic growth in the face of the global health crisis, and as profits and interest rates take a hit, nearly two-thirds of the world's 500 most valuable banking brands have recorded brand value losses.