Interbrand names Credit Suisse the most valuable Swiss bank brand
Zurich, 13 January 2011
– Credit Suisse leads the list of most valuable Swiss bank brands, followed by UBS and Kantonalbank, according to a study published by Interbrand in collaboration with the Swiss business magazine BILANZ. With a brand value of 4050 million CHF, Credit Suisse is the Swiss bank with the most valuable brand. In second place is UBS with a brand value of 3850 million CHF, followed by Kantonalbank in third place, with a brand value of 2218 million CHF.
"Investing in brands is worthwhile – especially in the banking sector,” said Nik Stucky, Global Practice Leader for Brand Valuation at Interbrand. "The fact that Credit Suisse tops the list is no coincidence. It shows just how important consistent brand management is for success,” he added. "Credit Suisse did not escape the global financial crisis undamaged, but because the bank has made a commitment to strengthening its brand, it was able to regain consumers’ confidence much faster – especially because it focuses on customers as opposed to itself or its products,” Stucky explained.
UBS also suffered heavy losses as a result of the banking crisis and forfeited its first-place ranking. "It remains to be seen how the realignment of UBS and its radical departure from its old values will affect its credibility and long-term position,” said Stucky.
The Kantonal banks, which came in third in the ranking, have profited from the loss of confidence in the large banks. The Kantonal banks fared favorably thanks to their local moorings, their proximity to customers and their likable image. Fourth-placed Julius Bär, valued at 1619 million CHF, ensures added value for customers through its commitment to excellent service and the confidence it inspires, while fifth-placed Vontobel weathered the crisis unscathed and established itself as a “small big bank” and a solid, stable preserver of wealth by consistently delivering on its brand promise, “Performance creates trust.” The Raiffeisen bank, with its “close to the people” image, profited from the crisis like no other brand. Credibility, grassroots popularity and stringent brand management put it on the “fast track” to added brand value.
PostFinance is another bank that is trusted by a majority of consumers. Although not a licensed bank, this financial institution has a brand value of 888 million CHF and appears – somewhat surprisingly – in eighth place on the ranking. Nik Stucky, who was responsible for the Swiss bank study, said, “We were amazed just how valuable this brand is, since it belongs to an institution without a banking license. Although it has emancipated itself from the Swiss postal service, the core values of the parent brand – reliability, security and trust – still reflect positively on it.
“Proximity to customers, high esteem, solidarity, credibility and transparency – these values afforded essential benefits in the effort to win customer confidence during the crisis. “Together with consistent brand management that delivers on the brand promise, they were able to create real added value for consumers,” Stucky concluded.
These and other findings will be published exclusively in the 14 January 2011 edition of BILANZ.
Brand evaluation by Interbrand
The ranking of the “20 most valuable Swiss bank brands” considers band brands with a value of at least 35 million Swiss franks. To be included, banks must fulfill two criteria: The bank must be headquartered in Switzerland, and sufficient marketing and financial data about the bank must publically accessible.
Using financial analysis techniques, Interbrand first calculates the “economic value added,” i.e. the forecast business volume of the brand over the next five years. Subsequently, with the help of publically available data, Interbrand assesses the degree to which the brand itself influences customer purchase decisions and business dealings. In this case, the question amounts to the extent the brand influences people’s decision to do business with a given bank. These calculations result in the expected brand revenue; whether this potential will be fulfilled depends on a number of factors (risks) that must likewise be taken into consideration. The strength or weakness of a brand is derived with the help of additional market research data such as awareness and recognition, perception and reputation. The sum of these various factors is the current value of the brand.
The listed brand value thus corresponds to the current value of future revenue that can be attributed to the presence of the brand itself.
Interbrand’s brand evaluation techniques are the first in the world to have been certified for compliance with ISO 10668:2010, an international standard that sets out procedures and methods for calculating the monetary value of brands.
Interbrand is a pioneer in the field of brand evaluation. Over the past 25 years the company has conducted more than 5000 brand evaluations worldwide on behalf of clients representing a wide range of industries. Unlike the “20 most valuable Swiss bank brands” study, the data used in most of these commissioned evaluations comes from internal sources as well as primary market research surveys. Interbrand’s brand evaluation studies are beneficial in a number of situations including financial transactions, value-adding brand management, controlling and reporting. The ISO certification assures clients that the methodology Interbrand uses conforms to the requirements of monetary brand evaluation.
Interbrand is one of the world’s leading brand consulting companies with a total of 37 offices in 26 countries. Interbrand Central and Eastern Europe, with offices in Hamburg, Cologne, Moscow, Munich and Zurich, is part of the worldwide Interbrand Group network and advises renowned clients from Germany, Austria, Switzerland and other central and eastern European countries on all their brand identity needs, from strategic brand processes to creative consulting for visual identities and value-adding brand management. Our clients include ABB, BMW (with the BMW, MINI and Rolls-Royce brands), Deutsche Telekom, Deutscher Sparkassen- and Giroverband, Philips, Podravka, Rewe Group, Roche, SAP, Schindler, ThyssenKrupp, Unilever and Wrigley, among others.
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