UK-based bank tops global value league
HSBC has leapfrogged Bank of America to become the world’s most valuable banking brand in 2012, according to a report.
The Brand Finance Banking 500 report found that the strong performance by the London-based banking giant stood out in its region with a brand value of $27.59bn (£17.41bn). In comparison European banks performed miserably and made up 16 of the 20 brands that moved down the table.
David Haigh, chief executive of Brand Finance, said: “The past 12 months have proved to be a very turbulent period for banking brands.
“This year is set to be a landmark year politically with the US election in November and polls in Germany and France too. In this context, the eyes of the world will be examining the brand value of financial institutions as an indicator of the broader financial health of their respective nations.”
Chris Clark, group head of marketing for HSBC, said: “The resilience of our brand and our new strategy have come together to generate a very compelling position for us. Being named the number-one brand by Brand Finance is a great way for us to be recognised for the manner in which we manage the brand and the firm.”
The 55-page report found that while Europe continued to be beset by economic uncertainty and the ongoing troubles of the eurozone, last year saw the meteoric rise of emerging economies reach a crucial tipping point.
US banks continued to fare well when compared with their European counterparts, with Wells Fargo holding firm in second position and strong performances from Citigroup and American Express, in sixth and seventh place respectively.
Five of the top 10 most-valuable banking brands have headquarters in North America, and the report claimed the US was recovering from the financial crisis much faster than Europe.
Joss Harwood, director of County Durham-based Eldon Financial Planning, said although she had recommended some HSBC funds to clients, not all of its offering were suitable.
She said: “As independent advisers we keep an open mind and have used HSBC index tracking funds. The interest bearing accounts, such as cash Isas, have not been competitive enough to warrant diverting client cash to HSBC.”
