Two of the big six are not only in the elite top 10 among banks but rank alongside other super-valuable brands across all sectors
Two of Canada’s largest financial institutions are rubbing shoulders with the world’s banking elite.
RBC and TD have both been included in the Kantar BrandZ Top 10 Most Valuable Bank Brands 2021. The rankings assess the contribution of brands to financial performance and are considered a key metric of brand value.
China’s ICBC leads the banking brands league. Its brand value is calculated as almost $38 billion, more than $10 more than Wells Fargo in second place and RBC in third. RBC’s brand value ($27.6bn) has gained 33% in the last year, growth only surpassed by Commonwealth Bank of Australia in 9th place and with 48% growth.
TD is ranked 7th, behind HDFC, JPMorgan, and Chase. TD’s brand value is assessed as more than $20 billion.
The two Canadian banks in the top 10, also feature among the overall BrandZ rankings which considers all sectors. RBC sits at number 63 with TD at 90.
"Canadian Banks showed an impressive rebound after the setbacks of 2020," said Scott Megginson, President of Kantar Canada, adding "The Brand Value of both RBC and TD is now higher than we've seen in our past five valuations, which is a testament to the resilience of these institutions and their strong equity with Canadian consumers. Many global banks saw further declines to Brand Value in 2021."
Most valuable brands
This year’s BrandZ rankings reflect the continued clout of big tech companies. Seven of the top 10 are technology companies.
Amazon is the world’s most valuable brand at almost $639bn, up 64% in the last year, beating Apple ($612bn), Google ($458bn), and Microsoft ($410bn).
Tencent, Facebook, Alibaba, Visa, McDonald’s, and Mastercard complete the top 10.
Tesla is the fastest growing brand and became the most valuable car brand, growing its value by 275% year-on-year to $42.6bn.
Overall, the world’s biggest brands grew their value by 42% to $7.1 trillion – that’s the equivalent of the GDP of France and Germany!
Aside from RBC and TD, Lululemon fell just $1 billion short of the top 100 with a brand value of almost $18 billion. However, the Canadian firm is the 4th most valuable apparel brand globally, beaten only by Zara, Adidas, and top-ranked Nike.
Growing sectors
The rankings give an insight to investors as to where the growth markets are.
"2020-1 has been a record year for brand growth, and despite many facing a difficult year, our research has again proven that strong brands deliver superior shareholder returns, are more resilient and recover more quickly," said Nathalie Burdet, CMO of Kantar. "With global ecommerce growing from 12% to 15% of all sales in 2020, it has been a positive year for brands involved in that value chain – from the retailers through to the couriers like FedEx and UPS.
Burdet added that the pandemic has impacted which sectors have outperformed with apparel brands collectively growing even more than media and entertainment brands in the ranking, and luxury brands, despite reduced travel and lockdowns globally, having refocused their energies and seen growth as a result.
