Think Bank of America (NYSE:BAC) will never recover after hitting rock bottom following the financial crisis? Actually, one fresh study shows its recovery is moving ahead.
Last week, Millward Brown released its BrandZ ranking of the world's 100 most valuable brands, which calculates the dollar value of brands across the globe through research spanning over 30 counties, 2 million customers, and 10,000 brands.
The research firm's calculation seeks to quantify how much of a company's earnings can be tied to the actual brand that customers see and interact with, and as a result, what the true value of that brand is.
In 2008, Bank of America had a brand value of $33.1 billion, an increase of 15% over 2007. It overtook Citigroup (NYSE:C) -- which saw its brand value fall 10% during the year to $30.3 billion -- as the most valuable banking brand. Overall, B of A was ranked 14th among the top 100 global brands.
But that all changed in 2009. As the BrandZ report for the year noted, "The sub-prime debacle, which originated in North America and rippled around the world, caused a year of enormous challenges and changes for the banks." Both Bank of America and Citigroup saw their brand values plummet by more than 50%, respectively to $15.5 billion and $14.6 billion.
While Citigroup's brand value limped along after 2009, Bank of America's continued to plummet as the years progressed, and it was entirely unranked in both 2012 and 2013. The least valuable brand among the top 100 last year was Volkswagen at $8.8 billion, so you can see how bad BofA's situation had become.
The takeaway for investors
Of the biggest banks, Bank of America has undergone the longest and the most painful recovery as a result of its actions during the financial crisis, as well as those of the companies it acquired.
But pieces of data like this show that, while it hasn't fully shaken off the troubles that once plagued it, the bank is moving in the right direction, which could mean big things for it in the years ahead.
Patrick Morris owns shares of Bank of America. The Motley Fool recommends Bank of America. The Motley Fool owns shares of Bank of America and Citigroup. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.