Wells Fargo Tops List of Most Valuable Banking Brands

One interesting piece of data that emerged from the survey is the emergence and strength of some of the major Chinese banks. Two banks, ICBC and the China Construction Bank, made the top 10 this year, and both moved up from last year’s rankings. With the world’s second largest economy, the banking system in China is expanding rapidly to better serve business and consumers, not only in China and Asia, but around the world as well.

U.S.-based banks are well represented in the top 10. In fact, the American brands are so strong in the survey that they capture four out of the top five slots. That is a significant showing again, considering the struggles the major U.S. banking firms have dealt with since the massive bankruptcy and fall of Lehman Brothers in 2008.

The top five brands for 2014 are:

1. Wells Fargo & Co. Inc. (NYSE: WFC)
2. HSBC Holdings PLC (NYSE: HSBC), which is based in Great Britain
3. Bank of America Corp. (NYSE: BAC)
4. Citigroup Inc. (NYSE: C)
5. J.P. Morgan Chase & Co. (NYSE: JPM)

The analysts at Brand Finance employ a very strict methodology in their selection of the top brands. They use a discounted cash flow technique to discount future royalties at an appropriate discount rate. This helps them arrive at a net present value of the trademark and associated intellectual property, ultimately arriving at the brand’s current value.

“The brand values very much mirror banks’ share prices and market capitalisations,” says Bryn Anderson, chief operating officer of Brand Finance, the consultancy that did the research for the ranking. He believes that banks increasingly recognize the need to enhance the value of their brands. “Over the past year, banks have really been focusing on the customer,” Anderson says. “They are beginning to understand that their brand is a valuable asset that needs to be managed. With the focus on customer satisfaction and competitiveness of the products they are offering, I think we will see brand strengths grow.”

One thing is for sure, the banking industry, especially in the United States, will continue to rebuild its tarnished image. Brand awareness and positioning will remain extremely critical. It is a given that this will remain a top-level priority for high-profile CEOs like J.P. Morgan’s Jamie Dimon and Bank of America’s Brian Moynihan, now and in the foreseeable future.