Australia’s Big 4 banks are global unknowns
February 4, 2014 Leave a comment
Australia’s Big 4 banks are global unknowns
February 3, 2014 – 1:21PM
Australia’s big four banks may rank among the most profitable in the developed world, but when it comes to brand value they trail their better known foreign peers.
Aggressive expansion into Asia has put Australia and New Zealand Banking Group at the top of the list for Australia’s most valuable bank brands, however the bank’s global rank held steady from last year at 39, with a brand value of $6.8 billion.
The brand value of US-based bank Wells Fargo, the world’s most valuable, is $US30.2 billion ($34.5 billion), according to The Brand Finance Banking 500 study.
Commonwealth Bank of Australia, which some analysts expect will post of half year profit of $4 billion next week, comes in second among Australian bank brand value and is ranked 42nd in the world, up two places from last year, worth $6.3 billion.
National Australia Bank, Australia’s third most valuable bank brand, recorded 46th position amongst its global counterparts, valued at $5 billion.
Westpac Banking Corp, last among local banks with a brand worth of $4.9 billion, was 48th in the world rankings.
All of Australia’s big four banks improved their brand value, according to the annual study, but only CBA and Westpac improved their world ranking.
Collectively this financial year, Australia’s big four banks are expected to lock in profits above last year’s record of $27.3 billion.
The market dominance of the big four in Australia has seen them ranked among the developed world’s most profitable for the last three years.
According to figures published by the Switzerland-based Bank for International Settlements, pre-tax profits for the big four were equal to 1.18 per cent of their total assets.
Only major banks in Brazil, China, India and Russia rank higher in returns.
Many major banks around the developed world have struggled with the global financial crisis in recent years.
Australia’s economy has remained relatively shielded thanks to the mining boom, although a slowdown in credit growth has forced lenders to embark on cost cutting, including job losses.
Several smaller lenders were taken over during the GFC, allowing the big four to lift its dominance of the mortgage market to 83 per cent.
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