2014 EDELMAN TRUST BAROMETER FINANCIAL SERVICES INDUSTRY

RESULTS

EDELMAN'S 14TH ANNUAL SURVEY, LARGEST GLOBAL EXPLORATION OF TRUST

2

ONLINE SURVEY

IN 27 COUNTRIES

• 33,000+ respondents

• 6 years in 20+ markets

• 9 years in 10+ markets

GENERAL

POPULATION

• 1000 respondents per

country surveyed

• Ages 18+

• 3 years of data

INFORMED

PUBLICS

• 500 respondents in U.S. and

China & 200 in other countries

• Ages 25-64

• College-educated

• In top 25% of household

income per age group in each

country

• Report significant media

consumption and engagement

in business news and public

policy

• 14 years of data

FINANCIAL SERVICES INDUSTRY

Comparison Trust in Industries

Trust in FINANCIAL SERVICES Industry Sector

Trust in the FINANCIAL SERVICES Industry Over Time

Trust in the FINANCIAL SERVICES Industry by Region

Trust in the FINANCIAL SERVICES Industry by Country

Industry Global Bird’s

Eye View

Trust in the FINANCIAL SERVICES Industry (2013 vs. 2014)

Trust in the FINANCIAL SERVICES Industry & Trust in Business

Trust in the FINANCIAL SERVICES Industry vs. Trust Companies

Trusters and Distrusters FINANCIAL SERVICES Industry Trusters vs. Distrusters

Credible Spokespeople

Trusted Sources of Information

Trust Building Business Trust Attributes

2014 FINANCIAL SERVICES Industry Trust Attributes

3

ONE | The State of Trust

79%

75%

70%

66%

65%

65%

64%

63%

60%

59%

59%

55%

51%

51%

50%

Technology

Consumer electronics

manufacturing

Automotive

Food and beverage

Consumer packaged goods

Entertainment

Brewing and spirits

Telecommunications

Consumer health companies

Energy

Pharmaceuticals

Chemicals

Media

Banks

Financial services

+2

+2

+1

0

0

0

+2

+1

+1

0

+1

-1

-2

+1

0

TRUST IN INDUSTRIES, 2013 VS. 2014

Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics, 20-country global total.

5

2014 2013 2013 VS. 2014

FINANCIAL SERVICES CONTINUES TO BE THE LEAST TRUSTED INDUSTRY GLOBALLY

77%

73%

69%

66%

65%

65%

62%

62%

59%

59%

58%

56%

53%

50%

50%

Technology

Consumer electronics

manufacturing

Automotive

Food and beverage

Consumer packaged goods

Entertainment

Brewing and spirits

Telecommunications

Consumer health companies

Energy

Pharmaceuticals

Chemicals

Media

Banks

Financial services

48% 52% 52%

47% 46%

Financial services

Industry

Banks Credit cards/payments Insurance Financial advisory/asset

management

6

TRUST IN FINANCIAL SERVICES INDUSTRY – GLOBAL

Q61C-64C. [SPLIT SAMPLE] Now thinking about specific sectors within the Financial Services industry, please indicate how much you trust businesses in each of the following sectors to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. General Population in 27 -country global total

WHEN LOOKING AT SECTORS, BANKS AND CREDIT CARDS/PAYMENTS ARE MOST TRUSTED GLOBALLY, WHILE FINANCIAL ADVISORY/INSURANCE ARE LEAST TRUSTED

48%

62% 61%

54% 51%

29%

GLOBAL APAC BRIC Latin America North America EU

7

APAC AND BRICS ARE MOST TRUSTING OF THE INDUSTRY TRUST IN FINANCIAL SERVICES INDUSTRY – BY REGION

Q43-60. Financial Services Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population in 27 -country global total and across APAC, BRIC, Latin America, North America and EU region

48%

76%

71% 70% 69% 68% 66%

63% 62%

57% 57% 56% 55%

50% 46%

44% 42% 40% 39%

37% 36%

32% 31% 31%

25% 24% 23% 23%

Latin America APAC North America EMEA

8

APAC COUNTRIES ARE MOST TRUSTING OF THE INDUSTRY TRUST IN FINANCIAL SERVICES INDUSTRY – 27 MARKET OVERVIEW

Q43-60. Financial Services Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population in 27 -country global total and across 27 countries

9

TRUST IN FINANCIAL SERVICES HAS INCREASED OVER THE PAST YEAR IN 15 OF 27 MARKETS – GLOBALLY, TRUST IS ONE PERCENTAGE POINT HIGHER IN 2014 VS. 2013 2013 VS. 2014 TRUST IN FINANCIAL SERVICES INDUSTRY – 27 MARKET OVERVIEW

2013 2014

Q65-79. [TRACKING] Below is a list of companies. Please indicate how much you trust each company or organization to do what is right, using the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal” to do what is right. (Top 4 Box, Trust) General Population in 27 -country global total and across 27 countries.

47%

74% 74% 71% 72%

60% 59%

66%

59%

53% 53%

56%

0%

43%

38%

42%

46%

40%

42%

35% 37%

26%

33%

30%

31%

21%

28%

18%

48%

76%

71% 70% 69% 68%

66%

63% 62%

57% 57% 56% 55%

50%

46% 44%

42% 40%

39% 37%

36%

32% 31% 31%

25% 24% 23% 23%

49% TRUST IN BUSINESS

48% TRUST IN THE FINANCIAL

SERVICES INDUSTRY

Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”.; Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population in 27-country global total

GLOBALLY, TRUST IN THE FINANCIAL SERVICES INDUSTRY IS ONLY SLIGHTLY LOWER THAN TRUST IN BUSINESS

10

TRUST IN FINANCIAL SERVICES INDUSTRY VS. TRUST IN BUSINESS - GLOBAL

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%FINANCIAL

SERVICES

Industry Trust

(48%)

Business Trust

(49%)

11

TRUST IN FINANCIAL SERVICES INDUSTRY VS. BUSINESS IN GENERAL – 27 MARKET OVERVIEW

48%

76%

71% 70% 69% 68% 66%

63% 62% 57%

57% 56% 55%

50%

46% 44%

42% 40% 39%

37% 36%

32% 31% 31%

25% 24% 23% 23%

49%

64%

68%

63% 62% 62% 60%

65%

41%

55%

32%

57% 55%

48% 49%

54%

45%

33%

38%

45%

56%

49%

33%

43%

26%

34%

41% 41%

Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”.; Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population in 27-country global total and across 27 countries

TRUST IN FINANCIAL SERVICES IS HIGHER THAN TRUST IN BUSINESS IN 12 OF 27 MARKETS, MANY OF WHICH ARE DEVELOPING

Financial Services Industry Business

78%

69% 67%

64% 64% 61% 59%

55% 55% 52% 49%

48% 48%

32%

Tech Co. 1 Pharma Co.

1

Tech Co. 2 Food & Bev

Co. 1

Food & Bev

Co. 2

Energy Co.

1

Energy Co.

2

Food & Bev

Co. 3

Pharma Co.

2

Tech Co. 3 Food & Bev

Co. 4

Pharma Co.

3

Financial

Services

Industry

Pharma Co.

4

Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population in 27-country global total.

12

TRUST IN FINANCIAL SERVICES INDUSTRY VS. BLINDED COMPANIES – GLOBAL

TECH COMPANIES ARE MOST TRUSTED, WHILE FINANCIAL SERVICES AND PHARMA ARE THE LEAST TRUSTED

75% 75%

62% 61% 59%

42% 46%

29%

22%

27%

TRADITIONAL MEDIA ONLINE SEARCH ENGINES HYBRID MEDIA OWNED MEDIA SOCIAL MEDIA

Q178-182. When looking for general news and information, how much would you trust each type of source for general news and information? Please use a 9-point scale where one means that you "do not trust it at all" and nine means that you "trust it a great deal". (Top 4 Box, Trust) General Population in 27-country global total.

13

TRUST IN MEDIA SOURCES – FINANCIAL SERVICES INDUSTRY TRUSTERS VS. DISTRUSTERS

TRUSTERS IN FINANCIAL SERVICES INDUSTRY DISTRUSTERS IN FINANCIAL SERVICES INDUSTRY

FINANCIAL SERVICES INDUSTRY TRUSTERS AND DISTRUSTERS ARE MOST TRUSTING OF ONLINE SEARCH ENGINES; DISTRUSTERS ARE LESS TRUSTING OF MEDIA SOURCES GENERALLY

CREDIBLE SPOKESPEOPLE – FINANCIAL SERVICES INDUSTRY TRUSTERS VS. DISTRUSTERS

19%

23%

32%

51%

27%

28%

44%

40%

58%

58%

57%

29%

45%

54%

55%

56%

57%

57%

65%

65%

73%

74%

A blogger

A government official or regulator

An entrepreneur

A regular employee of a company

A company's board of directors

A ceo of a company

A non-profit organization or ngo representative

A financial or industry analyst

A person like yourself

An academic or expert on that company's industry or issues

A technical expert within the company, such as an engineer or

scientist

Q130-143. [TRACKING] Below is a list of people. In general, when forming an opinion of a company, if you heard information about a company from each person, how credible would the information be--extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box, Very/ Extremely Credible) General Population in 26-country global total

14

EXPERTS & PEERS REMAIN THE MOST CREDIBLE SPOKESPEOPLE

TRUSTERS IN FINANCIAL SERVICES INDUSTRY DISTRUSTERS IN FINANCIAL SERVICES INDUSTRY

TWO | Building Trust

Edelman Trust Barometer research

reveals 16 specific attributes which

build trust.

These can be grouped into

five performance clusters listed here

in rank order of importance.

16 DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS

HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP

RANKS ON A GLOBAL LIST OF TOP COMPANIES

OPERATIONS

WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT

ADDRESSES SOCIETY’S NEEDS IN ITS EVERYDAY BUSINESS

CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITY

PARTNERS WITH NGOs, GOVERNMENT AND 3RD PARTIES TO ADDRESS SOCIETAL NEEDS

PURPOSE

IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS

OFFERS HIGH QUALITY PRODUCTS OR SERVICES

PRODUCTS & SERVICES

TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR CRISIS

HAS TRANSPARENT AND OPEN BUSINESS PRACTICES

HAS ETHICAL BUSINESS PRACTICES

INTEGRITY

COMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITS BUSINESS

LISTENS TO CUSTOMER NEEDS AND FEEDBACK

TREATS EMPLOYEES WELL

PLACES CUSTOMERS AHEAD OF PROFITS

ENGAGEMENT

16 ATTRIBUTES KEY TO BUILDING TRUST

TRUST-BUILDING OPPORTUNITY

QUADRANT

BUSINESS IMPORTANCE VS. BUSINESS PERFORMANCE ON 16 TRUST DRIVERS - GLOBAL

17

STA

TE

D IM

PO

RTA

NC

E

STATED PERFORMANCE

ENGAGEMENT

INTEGRITY

OPERATIONS PURPOSE

PRODUCTS & SERVICES

HIGH-PERFORMING ON HIGH PRIORITIES UNDER-PERFORMING ON HIGH PRIORITIES

UNDER-PERFORMING ON LOWER EXPECTATIONS HIGH-PERFORMING ON LOWER PRIORITIES

Now tablestakes, in 2008

Operations were much higher

in importance for building trust.

ENGAGEMENT AND INTEGRITY: PRIORITY AREAS FOR COMPANIES TO BUILD TRUST

Q80-Q95. [TRACKING] How important is each of the following actions to building your TRUST in a company? Use a nine-point scale where one means that action is “not

at all important to building your trust” and nine means it is “extremely important to building your trust” in a company. (Top 2 Box, Very/Extremely Important) General

Publics, 27-country global total.; Q114-129. Please rate businesses in general on how well you think they are performing on each of the following attributes. Use a 9-

point scale where one means they are "performing extremely poorly" and nine means they are "performing extremely well". (Top 2 Box, Performing Extremely Well)

General Publics, 27-country global total.

21%

32% 31%

24%

30% 27%

50%

37%

32%

26%

34% 36%

30%

17%

27%

31%

23% 25%

15%

21%

25% 23%

22% 21%

12%

21%

13%

19%

14% 16%

COMPANY'S CEO COMPANY'S EMPLOYEE ACTIVIST CONSUMER ACADEMIC MEDIA SPOKESPERSON

18

MOST TRUSTED INFLUENCER TO COMMUNICATE EACH TOPIC - INFLUENCER MESSAGE MAPPING

INTEGRITY PURPOSE OPERATIONS PRODUCTS &

SERVICES

ENGAGEMENT

A COMPANY EMPLOYEE IS THE MOST TRUSTED SPOKESPERSON TO PROVIDE CREDIBLE AND HONEST INFORMATION

TOTALS

Q197-201(Global Summary). We would now like you to think about different types of information you may read, see or hear about a company. For each topic, please select which person you trust MOST to provide you with credible and honest information about a company. General Publics, 27-country global total.

47%

79% 82%

79%

60%

58%

53% 53%

29%

50%

36%

43%

48%

32%

38%

24%

32%

53%

25%

31%

26%

51%

91% 87%

85%

80%

78% 77%

74%

68%

64% 62%

59% 58%

53% 52%

52%

46% 42%

40%

38%

34% 33% 32%

28% 26% 23%

16% 15%

TRUST IN BANKS, 2009 VS. 2014

19

TRUST IN THE BANKING INDUSTRY HAS INCREASED IN DEVELOPING MARKETS BUT DECREASED IN MANY DEVELOPED MARKETS

Q11-14. [BUSINESS IN GENERAL] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you 'do not trust them at all' and nine means that you 'trust them a great deal'. (Top 4 Box, Trust) Informed Publics, 20-country global total.

N.A.

2009

2014

42%

60% 57% 56% 55%

52% 49% 49%

48% 47%

43% 42% 42%

38% 38% 38%

34% 33% 33% 31% 30% 29%

26% 26% 23%

53%

64% 63%

51%

81%

60% 58%

71%

62%

73%

51%

44%

64%

49%

38%

47% 45% 44%

57%

47%

36%

66%

32%

52% 49%

37%

61%

39%

20

INFORMED PUBLICS FAVOR INCREASED REGULATION OF THE FINANCIAL SERVICES INDUSTRY

Not Enough Regulation of Business

Not Enough Regulation for Financial Services

Q148. [TRACKING] When it comes to government regulation of business, do you think that your government regulates business too much, not enough or the right amount? (Not Enough, Too much) Informed Publics, 27-country global total. Q262. When it comes to government regulation of the financial services industry, do you think that your government regulates it too much, not enough or the right amount? (Not Enough, Too much) Informed Publics, 27-country global total. Q263. When it comes to government regulation of the energy industry, do you think that your government regulates it too much, not enough or the right amount? (Not Enough, Too much) Informed Publics, 27-country global total. Q264. When it comes to government regulation of the food and beverage industry, do you think that your government regulates it too much, not enough or the right amount? (Not Enough, Too much) Informed Publics, 27-country global total.

TRUST IN FINANCIAL SERVICES VS. DESIRE FOR MORE REGULATION OF FINANCIAL SERVICES

21

COUNTRIES WITH HIGHER TRUST IN THE INDUSTRY HAVE LESS DESIRE FOR INCREASED REGULATION

Q11-14. [BUSINESS IN GENERAL] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you 'do not trust them at all' and nine means that you 'trust them a great deal'. (Top 4 Box, Trust) Informed Publics, 20-country global total.

Trust in Financial Services

Not Enough Regulation for Financial Services

53%

80%

83%

85%

85%

86%

PAYS APPROPRIATE LEVEL OF TAX

RESPONSIBLE SUPPLY CHAIN

MANAGEMENT

RESPECTS EMPLOYEE RIGHTS

PROTECTS CUSTOMER DATA

ENSURES QUALITY CONTROL IN

PRODUCTS

Q237-248. [SPLIT SAMPLE] How important are each of the following factors to building your TRUST in a company? Use a 9-point scale where one means that action is "not at all important to building your trust" and nine means it is "extremely important to building your trust" in a company. (Top 4 Box, Important in Building Trust) Informed Publics in 27-country global total.

22

TURNING ATTRIBUTES INTO ACTION: TOP RANKED POSITIVE BEHAVIORS WILL IMPACT ENGAGEMENT CLUSTERS

THE LINK BETWEEN THE TOP FIVE POSITIVE EFFECTS ON TRUST AND TRUST CLUSTERS

If companies exhibit these positive behaviors... …it will have its greatest impact in these clusters

ENGAGEMENT INTEGRITY

ENGAGEMENT INTEGRITY

ENGAGEMENT INTEGRITY

ENGAGEMENT INTEGRITY

ENGAGEMENT INTEGRITY

PURPOSE

PRODUCTS & SERVICES

PRODUCTS & SERVICES

79%

79%

80%

80%

81%

MISREPRESENTS THE COMPANY

SUB-STANDARD WORK CONDITIONS

IRRESPONSIBLE DURING A CRISIS

FAILS TO KEEP CUSTOMER

INFORMATION SECURE

UNETHICAL BUSINESS PRACTICES

Q226-236. [SPLIT SAMPLE] Please indicate whether each of the below actions would impact your trust in a company using a 9-point scale, where one means that action has "no impact on your trust in a company" and nine means it "has a significant negative impact on your trust in a company. " You can use any number from one to nine, the higher the number the more that action would have a negative impact on your trust in a company. (Top 4 Box, Negative Impact on Trust) Informed Publics in 27 -country global total.

23

NEGATIVE BEHAVIORS ARE MOST LIKELY TO AFFECT PERCEPTIONS OF HAVING AN ETHICAL BUSINESS PRACTICE THE LINK BETWEEN THE TOP FIVE NEGATIVE EFFECTS ON TRUST AND TRUST ACTIONS

ENGAGEMENT INTEGRITY

ENGAGEMENT INTEGRITY

ENGAGEMENT INTEGRITY

INTEGRITY

INTEGRITY

…it will have its greatest impact in these clusters If companies exhibit these negative behaviors...

A NEW TRUST ENVIRONMENT

24

84% believe a company can take

specific actions that both increase profits

and improve the economic

and social conditions in the

communities where it operates.

Operations and CSR programs are now

tablestakes. Business must focus on

Engagement and Integrity

to build trust.

CEO must become Chief Engagement Officer

There has been a significant change

in the trust environment since 2009.

Business must now lead the debate

for change.

People trust business to innovate,

unite and deliver across borders in a

way that government can’t. This trust

comes with the expectation and

responsibility to maintain it.

WE NEED TO EVOLVE…

Macro Micro

Shared Value(s) Transactional

Societal Expectations Legal Requirements

How and Why What

to include From only

BUSINESS TO LEAD THE DEBATE FOR CHANGE

26

Evaluate Establish transparent metrics. Report

frequently. Acknowledge performance

and amend as needed.

Advocate Offer a clearly articulated strategy that

delivers context. Engage and enable to

amplify. Create mass movement.

Participate Partner, listen and build relationships

to inform strategy.

On the cover, from top left: Japanese Prime Minister Shinzo Abe: REUTERS/Toru Hanai; Malala Yousefzai: REUTERS/Darren Staples; Brazilian Oil

and Gas Magnate Eike Batista: REUTERS/Fred Prouser; Anti-Government Protests in Turkey: REUTERS/Murad Sezer; Lord Justice Leveson, chair

of The Leveson Inquiry: REUTERS/Stefan Wermuth; Hong Kong Protests in Favor of Edward Snowden: REUTERS/Bobby Yip; U.S. Government

Shutdown: REUTERS/Mike Theiler