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The 3 Singapore banks, DBS, OCBC and UOB contributed 30% of the total brand value out
of 39 ASEAN banks, showcasing the dominance in the region.The 3 banks were also
amongst the top 100 bank brands globally, with DBS clinching the 40th spot in the top 500
banks globally, up from 52nd last year. OCBC and UOB retained the 2nd and 3rd position in
ASEAN, with global ranking of 64th and 66th. With a brand value growth of over USD$ 1.1
bn, this also makes DBS the first ASEAN bank to be the Top 50 most valuable bank brands
worldwide.At 12.6% year-on-year brand value growth, the Singapore banks outperformed
the industry which total value increased 11.5% globally.ASEAN banks recorded a 16.8%
growth, signifying the importance of brand management in the region.In terms of brand
strength, as measured by Brand Finance’s Brand Strength Index (BSI), the top 3 spots
belonged to the Indonesian banks. BCA is still the strongest bank brand in ASEAN with the
only AAA brand rating, followed by Bank Mandiri and BRI, both with AAA- brand rating.The
3 new entrants this year from ASEAN are EastWest Bank from Philippines, AffinBank from
Malaysia and OCBC NISP from Indonesia.VietinBank and Vietcombank from Vietnam have
the largest percentage increase of brand value with 51% and 41%.The Top 10 ASEAN
banks have maintained the ranking except Bank Mandiri overtaking CIMB for the 7th spot.
Every year, leading global brand valuation and brand strategy consultancy Brand Finance
values the brands of thousands of the world’s biggest companies. The results of this
analysis are then ranked, with the world’s 500 most valuable banking brands featured in the
Brand Finance Banking 500, also published in The Banker magazine.
Singapore bank brands remained crowned as the top 3 ASEAN bank brands in the global
brand rankings for the top 500 bank brands. DBS retained its status as the ASEAN’s most
valuable banking brand and managed to improve 12 places globally. The brand value for
DBS has improved significantly over 2017, reaching US$6.5 billion. DBS has become the
first ASEAN bank to be the Top 50 most valuable bank brand worldwide and also the first
ASEAN bank to cross US$6 billion.
OCBC and UOB retained the 2nd and 3rd position in ASEAN, with global ranking of 64th
and 66th. The strong growth for DBS and OCBC can be partly attributed to their recent
acquisitions which provided the boost to the revenue base.
Commenting on the brand value growth and rankings, Samir Dixit, Managing Director of
Brand Finance Asia Pacific highlighted that “It’s very heartening to see the rise of ASEAN
brands amongst the global rankings and the dominance of Singaporean banks both globally
and in ASEAN. The Malaysian, Indonesian and Vietnamese banks however have also been
rising steadily both in value and in brand strength and this will likely pose some threat in the
future to the 3 Singapore banks.”
Samir added that, “Our annual brand equity research for the banks indicates that there still
exist wide gaps for banks brand strength due to higher product focus and very little brand
differentiation. Therefore, banks that will focus on the brand will benefit disproportionately.”
Samir highlighted that “The # 2 and # 3 always have to try harder and it’s worth highlighting
that unlike DBS and OCBC, UOB had a more organic, non-acquisition based growth of
revenues and brand value and remains highly competitive in the region as the 3rd most
valuable ASEAN bank brand”. If not for the acquisition by OCBC, UOB would have been in
a strong position to challenge them at #2.”
Brand Finance’s research further indicates that ASEAN’s consumers growing affinity for
brands and branded goods is helping set a solid foundation for competitive brands from the
region. This is evident by the 3 Indonesian banks (BCA, Mandiri and BRI) squeezing their
way to being the Top 3 Strongest bank brand in ASEAN and further demonstrated by BCA
being the 9th Strongest bank brand globally.
Of the total 41 AAA- rated (brand strength rating) bank brands globally, 8 are from ASEAN
with DBS being AAA- rated brands from Singapore followed by the 3 Indonesian banks
which are Mandiri, BRI and BNI, which also leaves BCA as the only ASEAN bank brand to
have attained the AAA rated brand.
It’s the strong growth of ASEAN region as a whole and coupled with a consumer preference
for home grown brands that is driving the phenomenal increase in brand values of the
ASEAN bank brands which the western banks cannot hope to match.
ASEAN bank brands more recent growth has also been due to accelerating M&A activities
in the region. These have been providing opportunities for the ASEAN banks beyond its
growing domestic market.
Globally, the Industrial and Commercial Bank of China (ICBC) at US$59.1 bn and China
Construction Bank at US$56.7 bn have taken out 1st and 2nd place respectively as the
world’s most valuable bank brands for 2018. China Construction Bank rose from 3rd place
to 2nd, overtaking US bank Wells Fargo at US$44.1 bn, which slipped to 3rd despite itself
growing by 6%.
“Globally, the value of the world’s 500 biggest bank brands increased by 11.6% over the last