The total brand value of the world’s 500 most valuable banking brands has surged by 13% year-on-year to reach USD1.6 trillion, marking the first double-digit increase in four years, according to the latest report by Brand Finance, the world's leading brand valuation consultancy. This follows two years of sluggish 2% brand value growth and reflects the banking sector's ability to sustain momentum despite market volatility.
Annie Brown, Valuation Director at Brand Finance, commented:
“The high-interest rate environment in many major economies has undoubtedly driven growth in banking brand values, boosting profits and share prices in 2024. However, longer-term brand value growth is being shaped by four key trends: regulation, digital innovation, a shift towards fee-based income over interest margins, and a renewed focus on brand building to sustain competitive advantage.”
Digital-first challenger banks are now seeing the benefits of years investment into building their brands. UK neobank Revolut is the fastest-growing banking brand globally, with a 795% increase in brand value to USD1.9 billion, driven by marketing investment, customer expansion and new market entry. Coutts is the UK’s strongest banking brand, with a Brand Strength Index (BSI) score of 85.6 out of 100.
HSBC remains the most valuable banking brand in the UK, and in wider Europe, a position it has held for more than a decade, and places 11th in the overall ranking. The UK bank, which celebrates its 160th anniversary this year, grew its brand value by 39% to USD27.8 billion.
While banking brands have seen significant brand value growth, overall business value has increased even more sharply (+43%), leading to a drop in brand value as a proportion of market capitalisation from 19% to 14%. This could signal either an upcoming market correction or a conservative valuation of banking brands relative to their financial performance.
