Chinese banks score well in annual brand ranking

Chinese banks have maintained their dominance of the world's most valuable banking brands, continuing to occupy the top four spots in the global ranking, according to a new report.

Brand Finance, a London-based brand valuation consultancy, launched the Top 500 Most Valuable Banking Brands report for the 15th year this week.

Chinese banks accounted for one-third of total brand value and claimed seven of the 10 top climbers by absolute brand value. ICBC retained the title of world's most valuable banking brand with a value of $72.8 billion.

In 2007, there were no Chinese banks within the Top 100 most valuable. This year, Chinese banks made up a total value of $388 billion, in comparison to $241 billion for the US banks, the second-highest ranked country.

The research found Chinese banks have been largely impervious to the issues plaguing countries elsewhere in the world, as two-thirds of brands in the ranking have experienced losses while banks in China recorded a healthy 3 percent average brand value growth.

This was largely attributable to the banking sector's role in China's timely and effective response to the COVID-19 pandemic, which includes regulatory policy adjustments for asset management, wealth management, and inter-banking, as well as increased investment into digitalization, the study noted.

David Haigh, CEO of Brand Finance, said: "Chinese banks have scored extremely well in Brand Finance's Global Brand Equity Monitor research this year, ranking highly for attributes such as recommendation.

"This is undoubtedly an effect of China's management of the COVID-19 pandemic, which has allowed its economy to continue functioning relatively unscathed, allowing space for banks to grow further," he added.

Despite a nearly 10 percent drop in brand value from $80.79 billion, ICBC remained the country's biggest bank. It continued to fare well with consumers, regardless of the bank's depreciating brand value due to the pandemic's negative impact on its investment portfolio return.

The brand maintained a healthy lead ahead of China Construction Bank (down 5 percent to $59.6 billion) and Agricultural Bank of China (down 3 percent to $53.1 billion), which came in at 2nd and 3rd place in the ranking, respectively.

China Guangfa Bank is also a remarkable addition to the country's portfolio, entering the ranking for the first time at an impressive 84th position and valued at $3.3 billion, according to the report. The Hong Kong Monetary Authority recently granted China Guangfa Bank a banking licence, widening its footprint outside of Chinese mainland.

Five US banks ranked in the top 10, with Bank of America the highest in 5th, and JP Morgan being the only bank in the top 10 to record brand value growth, up 3.2 percent.

As governments around the world have scrambled to stimulate economic growth in the face of the ongoing global health crisis, and as profits and interest rates take a hit, nearly two-thirds of the world's 500 most valuable banking brands have recorded brand value losses.