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Toronto-Dominion Bank has dethroned Royal Bank of Canada as the country’s top brand, according to Brand Finance PLC’s annual report on the most valuable and strongest Canadian brands.
TD’s brand value — up 27 per cent to $27.5 billion — was driven by a positive re-evaluation of its revenues and forecasts. The bank previously held the title in 2013, 2020 and 2021. RBC slipped to second spot as its brand value decreased by 15 per cent to $19.9 billion due to a dampened outlook and forecasted revenues.
The brand value gap between TD and its competitors could widen further in the coming years, the report said, as “every move TD makes matters.”
However, the recent collapse of Silicon Valley Bank has exposed the fragility of the worldwide banking system.
“Increased interconnectedness between Canadian and American banking sectors will tie the fate of the Canadian economy and banking closer to that of its American neighbours’,” the report said.
The third most valuable Canadian brand was Bank of Nova Scotia, followed by Canada Life Assurance Co., Bank of Montreal, Circle K (which is owned by Alimentation Couche-Tard Inc.), Brookfield Corp., Canadian Imperial Bank of Commerce, Bell and Telus Corp.
But Agnico Eagle Mines Ltd. is the fastest-growing Canadian brand as its value increased 115 per cent to $738.8 million.
Increases in brand value are visible across the board at Canadian mining companies and could continue in the next few years. Continued supply chain disruptions have contributed to this rise by commanding higher prices for gold and other minerals.
Brand Finance also determined the strength of brands, with A&W claiming the No. 1 spot. The fast-food restaurant chain received a brand strength index score of 87 out of 100, with a corresponding AAA rating, despite its brand value decreasing two per cent to $647.3 million.
A&W is still in its post-pandemic recovery stage, but the rating suggests it’s succeeding in building a strong level of brand equity and will return to brand value growth in the coming years.
Last year’s strongest brand, Canada Life, slid to spot two, followed by Intact Financial Corp., Scotiabank, Tim Hortons, Canadian Tire Corp. Ltd., TD, Shoppers Drug Mart Corp., Sun Life Financial Inc. and Maple Leaf Foods Inc.
On the other hand, Rogers Communications Inc. and Shaw Communications Inc. were among the companies that have taken a considerable hit to their brand value and strength as their controversial merger still awaits approval from federal regulators.
Canadian tech brands also took a hit, with Shopify Inc.’s brand value slumping 23 per cent to $1.1 billion. However, the tech slump is expected to stabilize in the near future.
Sustainability is another one of the attributes Brand Finance uses to assess the overall value of a brand. IT services firm CGI Inc. had the highest sustainability perceptions score — 5.89 out of 10 — with the company on track to achieve its net-zero target by 2030.
Other brands with high sustainability perception scores, in order, were Agnico Eagle, Nutrien Ltd., Hydro One Ltd., Canada Post, Toromont Industries Ltd., Suncor Energy Inc., Constellation Software Inc., Colliers International Group Inc. and Stantec Inc.
TD received the highest sustainability perception value (the value it has tied up in the sustainability perception of stakeholders) at $1.9 billion.
