According to the annual Brand Finance Banking 500 survey, the UK bank has justified its advertising slogan 'the world's local bank' by knocking Bank of America from the number one spot. HSBC was voted the most valuable banking brand, worth £17.3bn, and outperformed its US and Chinese rivals.
Bank of America fell to third place, valued at £14.4bn, in this year's survey, with the US giant Wells Fargo remaining in second place with a brand value of £14.6bn. Chinese banks such as China Construction Bank, ICBC, Bank of China and Agricultural Bank of China, held strong positions in the 2012 list.
The shift of economic power from Europe to the expanding BRICs states (Brazil, Russia, India and China) is evident with six banks in the Top 20. The report described European banks as performing "miserably" in the past 12 months.
David Haigh, CEO of Brand Finance, said: "The past 12 months have proved to be a very turbulent period for banking brands. We have seen a collective decline in brand value amongst the 500 banks in our report of $94.78bn.
Despite this, the total value of the top 500 banking brands was US$746.7 billion. The size of this number – which is equivalent to the GDP of Turkey – underlines the importance of brand value to the global financial sector."
Barclays dropped out of the top 10 this year, down five places to 12th from 7th, though Standard Chartered climbed up two places to 24th position.
Unsurprisingly after the public uproar surrounding bankers' bonuses, the UK banks underwritten by the taxpayer slipped down the table. Northern Rock plummeted to 356th place, down from 233th. Its brand value has crashed to £147m in 2012, compared to £331m last year.
RBS brands Natwest and Coutts, the 'Queen's Bank', both fell to 88th (79th: 2011) and 275th (222th: 2011) place respectively ,while Lloyd's TSB is now 58th (54th: 2011).
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