Bank casts off shadow of crisis
Horta-Osorio’s turnaround boosts Lloyds’ brand value
Lloyds was the only one of the big four banks to see a rise in its ‘brand value’, which increased by 16% to £4.4 billion, and that is put down to the Portuguese chief executive’s revival strategy.
Its subsidiaries, Bank of Scotland and Halifax, each rose 13% to £900m and £2.5bn respectively to complete a positive outcome for the Lloyds group.
The authors of the Brand Finance Banking 500 Report said renovated branches and a refreshed image suggest a new confidence, helping to distance Lloyds from the problems of the company’s recent past.
The survey, published in the February edition of The Banker, is a league table of the world’s biggest banks, ranked by their brand value.
Total UK brand value for the banks is down by 3% and while Lloyds was a notable success because of its recent trouble, it was another former subsidiary – TSB – that was the best performer with its value up 21% to £507m.
Its rise was attributed to it straightforwardness, trust and heritage. TSB’s brand reputation is followed by the increasingly successful challenger banks, putting more pressure on the established players.
HSBC remains Britain’s most valuable bank brand, with a value of £17.5bn. Both HSBC and 2nd placed Barclays (£9.1bn) have registered negligible growth rates of 1.5% and 0.1% respectively. They, along with most UK banks, have been significantly affected by a toughening regulatory regime.
RBS’s brand value fell 6% to £2.4bn and the RBS-owned private bank Coutts, the Queen’s bank, was the worst affected, losing 42% of its brand value in a year. Standard Chartered plummeted 28%.
Brand Finance CEO David Haigh said: “A strong brand builds loyalty, helping to reduce churn. As switching becomes easier and with nimble competitors emerging, some banks may have to rely on the power of their brand ever more heavily to hold onto customers.”
The full table: