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The global banking industry has witnessed a significant downturn in the past two years due to the pandemic. The total brand value in the annual Brand Finance Banking 500 ranking increased by 10 per cent in 2018 (from $1.07 trillion to $1.18 trillion) and again by 15 per cent in 2019 ($1.36 trillion) but decreased by 2 per cent and 5 per cent in 2020 ($1.33 trillion) and 2021 ($1.27 trillion), respectively.
However, the banking industry with the highest increase in brand value was Vietnam, which has risen by 146 per cent, according to Brand Finance Banking 500 list.
Vietcombank's brand value climbed 99 per cent to $800 million, the second-highest growth rate globally.
“Since the Vietnamese government introduced its strategy to boost accountability and the strength of the banking sector, including more stringent capital requirements and greater transparency, customer perception has improved,” Brand Finance noted. “Growing confidence in the sector – reputation measures have improved 8 per cent in our research – has translated into higher revenues and a more positive outlook from equity analysts.”
Of the nine Vietnamese banks on the Brand Finance Banking 500 list, Agribank was the highest-ranked, placing 173th globally from 190th in 2019. Following are Vietcombank, VietinBank, VPBank, BIDV, Techcombank, MB, Sacombank, and ACB ranked 180th, 216th, 243th, 246th, 270th, 374th, 392nd, and 397th, respectively.
Previously, Brand Finance stated that Vietnam is the fastest-growing nation brand in 2020 ranking, its brand value skyrocketed by 29 per cent to $319 billion.
“Emerging as a Southeast Asian haven for manufacturing, Vietnam defies the global trend, with its brand value up an impressive 29 per cent,” Brand Finance noted.
Furthermore, US banks account for almost a quarter of the total brand value in the ranking – the nation’s 74 banks reaching a cumulative brand value of $274.8 billion.
Five US brands feature in the top 10, including Bank of America (down 7 per cent to $33 billion), Citi (down 3 per cent to $32 billion), Wells Fargo (down 22 per cent to $32 billion), Chase (down 8 per cent to $29 billion), and JP Morgan (up 3 per cent to $24 billion). Bank of America remains the most valuable banking brand in the US, placing fifth overall, and JP Morgan is the only brand in the top 10 to record a positive value change.
Currently holding the lowest reputation score among all banks in the US, Wells Fargo experienced the largest drop in brand value – falling two places to seventh overall, and third in the US – as a result of failing to rebuild favour among consumers in the wake of several past scandals, according to the report.
Citi, the third-largest US bank by assets, has emerged as the strongest retail bank in the US with a BSI score of 80.7 out of 100 and AAA- rating (up from AA+ in 2020). Citi has also climbed one place in the ranking to the 6th position, following a rapid rebound in its profits in the third quarter of last year.
Meanwhile, Chinese banks maintain dominance of the ranking, accounting for 33 per cent of total brand value and seven of the 10 top climbers. ICBC – the largest Chinese bank – remains the world’s most valuable banking brand.