top 10 most valuable banking brands in the world - Brand Finance

AUSTRALIA
Despite ongoing problems in Europe and the
United States, Australia’s economy continues
to power ahead - led by strong Asian demand
for resources. In 2010 interest rates increased
by a percentage point and the Australian dollar
reached parity against the U.S. Dollar for the
first time since it was floated in 1983. Despite
the strong economic fundamentals, share
prices declined over the course of the year –
the financial sector dipped by almost 10%.
Against this backdrop, the value of banking
brands in Australia rose about by US$2.3
billion to US$23.2 billion. In prior years the
big 4 banks - ANZ, Commonwealth Bank,
NAB and Westpac - benefited from the ‘flight
to quality’ sentiment caused by the credit
crisis, together with the withdrawal of some
international competitors from the corporate
market. The performance of the big 4 brands
varied during 2010, and all banks were subject
to considerable negative publicity resulting
from rate rises in excess of the Reserve Bank.
The best performer was Commonwealth Bank
which increased its brand value by 11% to US$
3.9 billion. This was driven by high advertising
spend, refurbishment of outlets and a focus on
customer service. The increase in brand value
and improved customer satisfaction provide a
good platform for future market share gains.
Commonwealth Bank has closed NAB’s lead
as Australia’s most valuable brand to US$320
million, and will doubtless be challenging for
the title in 2011.
The NAB brand, valued at US$4.2 billion, only
grew by 2.5%. It remains at the top of the table
due to its strength in the business market. In
order to strengthen its consumer performance,
NAB has positioned the brand as being fairer
than the other big banks - ‘More Give, Less
Take’. Its efforts have been gaining traction,
but received a major setback when an IT
failing prevented millions of customers from
Country Focus
accessing their accounts for several days at
cash-hungry month end.
Of all Australian banks, ANZ has the most
coherent international expansion strategy.
Although it was outbid for Korea Exchange
Bank other transactions are bound to follow.
The value of the ANZ brand has increased by
3.6% to $US3 billion. Despite Commonwealth
Bank narrowing the gap, ANZ retains higher
levels of customer satisfaction than the rest
of the big 4. Brand equity has been enhanced
by a popular advertising campaign stressing
ANZ’s commitment to ‘Live in Your World’.
Westpac bore the brunt of public fury over
interest rises that were perceived as excessive.
Despite this, it achieved modest growth of
3.2% to reach a brand value of US$3.4 billion.
Westpac’s brand portfolio includes St.George
which has a brand value of US$1.7 billion.
Separate brand teams are maintained to
protect the differentiation of each brand, but
the jury is still out as to whether St.George’s
‘Big Enough, Small Enough’ positioning can
withstand the shadow of Westpac ownership.
On the investment banking front, Macquarie
Bank has been a quiet performer gaining
US$350 million to reach US$2.2 billion.
Tim Heberden
Managing Director
Brand Finance Australia
+61 2 8256 1688
t.heberden@brandfinance.com
19 © Brand Finance plc 2011