hsbc most valuable bank brand

The annual study was first published in 2006 and incorporates data from listed companies globally, awarding ratings based on the strength, risk and future potential of brands relative to their competitors.

It also calculates “brand values”, which reflect the financial strength of brands.

This year’s report awarded a brand value of $27.59bn to HSBC, taking it ahead of Wells Fargo on $23.23bn and Bank of America, which fell two places to third, on $22.9bn (see table below).

A change in focus from developed to developing markets and a series of cost-cutting measures at HSBC leave it “well-prepared for the shift in economic power between the different regions of the world,” the study noted. “As a result its brand value could well grow over the next year.”

Despite HSBC’s strong performance, the report painted a bleak picture for European institutions more generally. Just five banks from the region appear in the top 20, compared with eight from North America, and seven from the Bric countries (Brazil, Russia, India and China) combined.

“2012 is set to be a landmark year politically with the US election in November and polls in Germany and France too,” said David Haigh, the chief executive officer of Brand Finance.

“In this context the eyes of the world will be examining the brand value of financial institutions, as an indicator of broader financial health of their respective nations.”

A copy of the report is available here.