“<strong>Brand</strong>s are <strong>the</strong> <strong>most</strong> <strong>valuable</strong> intangible assets in business today. <str<strong>on</strong>g>The</str<strong>on</strong>g>y drive demand, motivate staff, secure business partners and reassure financial markets. Leading edge organisati<strong>on</strong>s recognise <strong>the</strong> need to understand brand equity and brand value when making strategic decisi<strong>on</strong>s” David Haigh, CEO, <strong>Brand</strong> <strong>Finance</strong> plc Since it was first compiled in 2005, <strong>the</strong> <strong>Brand</strong><strong>Finance</strong>® Banking 500 has been <strong>the</strong> <strong>most</strong> comprehensive published table of banking brand values in <strong>the</strong> world. <str<strong>on</strong>g>The</str<strong>on</strong>g> study is released <str<strong>on</strong>g>annual</str<strong>on</strong>g>ly and incorporates data from banks in over 50 markets, listing <strong>the</strong> world’s <strong>most</strong> <strong>valuable</strong> 500 banking brands. Each brand has been accorded a brand rating: a benchmarking study of <strong>the</strong> strength, risk and future potential of <strong>the</strong> brand relative to its competitor set as well as a brand value: a summary measure of <strong>the</strong> financial strength of <strong>the</strong> brand. Foreword With <strong>the</strong> <strong>on</strong>-going European sovereign debt crisis compounded by ec<strong>on</strong>omic instability in Asia and political deadlock in America, it has been a very difficult time for banking brands around <strong>the</strong> world. <str<strong>on</strong>g>The</str<strong>on</strong>g> 500 banking brands in this year’s study saw <strong>the</strong>ir collective brand value fall by US$94.78 billi<strong>on</strong>. Even so, <strong>the</strong> total value of <strong>the</strong> top 500 banking brands was US$746.7 billi<strong>on</strong>. <str<strong>on</strong>g>The</str<strong>on</strong>g> size of this number – which is equivalent to <strong>the</strong> GDP of Turkey – underlines <strong>the</strong> importance of brand value to internati<strong>on</strong>al banks. <str<strong>on</strong>g>The</str<strong>on</strong>g> pain was not, however, distributed evenly. <strong>Brand</strong> value generated in Europe fell by 23% and that in North America by 5%, while Asia and <strong>the</strong> Middle East saw increases of 12% and 17% respectively. Europe, <strong>the</strong> centre of <strong>the</strong> damaging sovereign debt crisis, now generates <strong>on</strong>ly 24% of brand value, less than Asia or North America. This is represented in our tables of <strong>the</strong> best and worst performing banks. European banks - especially Greek, British, and Italian <strong>on</strong>es – made up 14 of <strong>the</strong> 20 brands to have lost <strong>the</strong> greatest percentage of <strong>the</strong>ir brand value, though in absolute terms <strong>the</strong> worst performing brand was Bank of America, which lost over US$11 billi<strong>on</strong> in brand value. At <strong>the</strong> o<strong>the</strong>r end of <strong>the</strong> scale, <strong>the</strong> best-performing brands were dominated by banks from <strong>the</strong> emerging markets and Canada. A combinati<strong>on</strong> of prudent regulati<strong>on</strong> and c<strong>on</strong>servative investment practices have made <strong>the</strong> Canadian banking system <strong>on</strong>e of <strong>the</strong> world’s <strong>most</strong> trusted, with Royal Bank of Canada (‘RBC’) entering <strong>the</strong> top 20 <strong>most</strong> <strong>valuable</strong> banking brands for <strong>the</strong> first time. RBC is joined at <strong>the</strong> top of <strong>the</strong> table by a collecti<strong>on</strong> of <strong>the</strong> world’s largest banks, with L<strong>on</strong>d<strong>on</strong>-based HSCB taking <strong>the</strong> positi<strong>on</strong> of <strong>the</strong> world’s <strong>most</strong> <strong>valuable</strong> banking brand. <str<strong>on</strong>g>The</str<strong>on</strong>g> Western giants are however, being joined by more challengers from <strong>the</strong> emerging markets. China C<strong>on</strong>structi<strong>on</strong> Bank and Brazil’s Bradesco both placed in <strong>the</strong> top 10 <strong>most</strong> <strong>valuable</strong> banking brands, with five o<strong>the</strong>r banks from <strong>the</strong> BRIC countries placing in <strong>the</strong> top 20. <str<strong>on</strong>g>The</str<strong>on</strong>g> <strong>Brand</strong><strong>Finance</strong> ® Banking 500 analyses <strong>the</strong> health of <strong>the</strong> world’s <strong>most</strong> powerful banking brands. At unstable and challenging times for <strong>the</strong> global financial industry, it provides a perspective <strong>on</strong> which banks are developing <strong>the</strong> str<strong>on</strong>g brands that <strong>the</strong>y will need to maintain and expand <strong>the</strong>ir businesses. David Haigh, CEO, <strong>Brand</strong> <strong>Finance</strong> plc 1 © <strong>Brand</strong> <strong>Finance</strong> plc 2012 © <strong>Brand</strong> <strong>Finance</strong> plc 2012 2