Chinese banks are now global leaders not just by asset base but also brand value, according to the latest version of Brand Finance Banking 500, which shows the combined value of Chinese banks has surpassed that of US banks for the first time.

A man speaks on the phone outside the Bank of China head office building in Beijing, China, March 30, 2016.?[Photo/Agencies]

The report, released on Wednesday by the London-based business valuation consultancy, has placed the Industrial and Commercial Bank of China as the world’s most valuable bank with a brand value worth $47.8 billion, representing a 32 percent year on year growth.

Brand Finance's CEO David Haigh, said: "Chinese banks are being carried along in the slipstream of industrial giants as they grow and expand into international markets. Facilitating international deals boosts revenues, but more importantly, enables the banks to build their reputations with potential clients across the world."

Marketing investment and the brand's credibility with customers, staff and shareholders, among other factors, are all taken into consideration in calculating brand value. Essentially, the ranking rates how a bank's soft values translate into performance.

The report also shows Chinese banks as having an aggregate total brand value of $258 billion, accounting for 24 percent of the total brand value of the top 500 global banks by brand value, in comparison to 23 percent of aggregate US banks.

In addition to the Industrial and Commercial Bank of China, the China Construction Bank and Bank of China also showed rapid brand value growth of 17 percent and 13 percent respectively. Harbin Bank’s brand has trebled in value in the course of 2016 to $811 million, representing the fastest-growing bank by brand value in 2016.

The success of the Chinese banks came at the expense of US banks, such as Wells Fargo, which once topped this list. Wells Fargo's fake account scandal, which led to court fines in 2016, contributed to a 6 percent fall in brand value to $41.6 billion.