2012 Edelman Trust Barometer: U.S. Financial Services and Banking Industries

2012EDELMAN TRUST BAROMETER:U.S. FINANCIAL SERVICES ANDBANKING INDUSTRIESWinning back the license to operate

2012 Edelman Trust Barometer METHODOLOGY OVERVIEW GENERAL INFORMED INFORMED PUBLIC PUBLIC PUBLIC 25-64 35-64 Twelfth Annual Study Online survey in 25 countries 30,000+ respondents 1,000 general population respondents per country Ages 18+ Oversample of informed publics* 500 respondents in U.S. and China & 200 in all other countries Ages 25-64  (Trending data among Ages 35-64) 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 * This year Informed Publics were surveyed via online methodology instead of telephone Regions APAC: Japan, South Korea, China, India, Australia, Indonesia, Singapore, Hong Kong, Malaysia EMEA: France, Germany, Ireland, Italy, Netherlands, Poland, Spain, Sweden, U.K., UAE, Russia North America: United States, Canada Latin America: Mexico, Brazil, Argentina EU: France, Germany, Ireland, Italy, Netherlands, Poland, Spain, Sweden, U.K.2 © Edelman, 2012. All rights reserved.

WHY ACTIVATE TRUST? WHY NOT JUST FOCUS ON REPUTATION? > TRUST and REPUTATION are inter-relational, not hierarchical. > REPUTATION is invaluable, but doesn’t inherently provide license to lead. REPUTATION TRUST is an aggregate is an expectation of future "analysis" of behavior based on past past behavior performance3 © Edelman, 2012. All rights reserved.

The U.S. is still more trusting of the Financial Services Industry than other developed economies; however, the Industry is only trusted by a majority of GENERAL PUBLIC respondents in nine markets TRUST IN THE FINANCIAL SERVICES INDUSTRY APAC APAC U.S. Latin America 72% North America 67% 66% 64% EMEA 61% 59% 57% 57% 56%50% 49% 46% 43% 44% 41% EMEA 39% 39% 37% 34% 32% 31% 31% 29% 20% 18% 17% 16%Q16-26. [Financial Services 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 donot trust them at all and nine means that you trust them a great deal. (Top 4 Box, Trust), General Population, 25-Country Global Total 5 © Edelman, 2012. All rights reserved.

Trust in Financial Services is higher than trust in Business in 9 of 25 markets; the U.S. however, is more trusting of Business than Financial Services GENERAL PUBLIC TRUST IN THE FINANCIAL SERVICES INDUSTRY & TRUST IN BUSINESS – HEAT MAP INDEX *Negative and positive numbers are difference between industry and business. Positive numbers and darker colors represent countries where the Financial Services Industry is trusted more than Business overall Netherlands Hong Kong Singapore Argentina Indonesia Germany Malaysia Australia S. Korea Sweden Canada Mexico Ireland Poland France Russia Japan China Brazil Spain India Italy UAE U.K. U.S. Financial Services 39 46 49 56 72 20 17 57 59 66 18 32 39 67 61 37 31 34 44 64 16 31 57 29 41 Business 49 45 55 51 62 27 33 42 61 63 36 50 40 58 68 52 37 32 30 59 35 45 54 38 44 Difference -10 1 -6 5 10 -7 -16 15 -2 3 -18 -18 -1 9 -7 -15 -6 2 14 5 -19 -14 3 -9 -3Q16-26. [Financial Services 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 nottrust them at all and nine means that you trust them a great deal. (Top 4 Box – Trust), General Population, Global 25-Country Total; Q11 -14. [Business in General 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. (Top 4 Box, Trust),General Population, 25-Country Global Total 6 © Edelman, 2012. All rights reserved.

Financial Services and Banking remain least trusted industries in the world TRUST IN INDUSTRIES – GLOBAL AND UNITED STATES 2011 2012 Technology Technology 80% 79% Automotive Telecommunications 67% 66% Food and beverage Automotive 67% 64% Consumer packaged goods Food and beverage 64% 62% Telecommunications Pharmaceuticals 61% 60% Brewing and spirits Energy 60% 59% Consumer packaged goods Pharmaceuticals 57% 56% Brewing and spirits Energy 57% 53% Media Media 52% 51% Banks Banks 50% 47% Financial services Financial services 48% 45% *Significant difference at the 95% confidence level vs. 2012 global Q16-26. [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 ages 25-64 in 20 country global total (excludes Argentina, Hong Kong, Malaysia, Singapore and UAE) and U.S. & Informed Publics ages 35-64 in 18 country global total7 © Edelman, 2012. All rights reserved.

In the U.S., Financial Services and Banking have gained trust but remain at the bottom TRUST IN INDUSTRIES – UNITED STATES 2011 2012 Technology 73% Technology 83% + 10 Food and beverage 54% Consumer packaged goods 74% + 26 Brewing and spirits 53% Food and beverage 74% + 20 Telecommunications 51% Brewing and spirits 71% + 18 Automotive 49% Automotive 66% + 17 Consumer packaged goods 48% Telecommunications 64% + 13 Energy 43% Energy 56% + 13 Pharmaceuticals 38% Pharmaceuticals 56% + 18 Financial services 25% Media 48% + 26 Banks 25% Financial services 46% + 21 Media 22% Banks 41% + 16Q16-26. [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 onemeans that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed publics ages 25-64 in the U.S.8 © Edelman, 2012. All rights reserved.

U.S. trust in banks did rise last year, but is still significantly below 2007-2008 levels TRUST IN BANKS US UK/France/Germany China India 100% 88% 90% 84% 85% 90% 83% 77% 87% 82% 80% 72% 83% 81% 75% 70% 69% 34 point decline 68% since 2008 60% 50% 40% 36% 41% 29% 39% 29% 35% 30% 20% 27% 24% 22% 21% 10% 0% 2007 2008 2009 2010 2011 2012 Q16-26. [Banks 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 ages 35-64 in the U.S., UK/France/Germany, China, India, Japan and South Korea9 © Edelman, 2012. All rights reserved.

In the U.S., the Financial Services Industry must win back trust among distrusters ages 30-64 GENERAL PUBLIC FINANCIAL SERVICES INDUSTRY TRUSTERS VS. DISTRUSTERS BY SEGMENT (AGE, GENDER, EDUCATION, INCOME) – UNITED STATES SEGMENT INDUSTRY TRUSTERS INDUSTRY DISTRUSTERS 18-29 30-44 45-64 65+ 18-29 30-44 45-64 65+ Age 32% 31% 26% 11% 19% 30% 40% 10% Gender 52% Male 53% Male  48% Female  47% Female Bachelors+ Education 49%  48%  $10,000-$49,999 $50,000-$99,999 $100,000+ $10,000-$49,999 $50,000-$99,999 $100,000+ Income $ 34% 35% 19% 41% 30% 14%Q1. What is your current age?; Q6. Are you male or female?; Q7. What is the last grade in school you completed? [Trusters=Top 2 Box (8-9), Swing =5, Distrusters=Bottom 2 Box (1-2) on a 1-9 scale], GeneralPopulation, U.S 11 © Edelman, 2012. All rights reserved.

U.S. Financial Services Industry trusters and distrusters are most trusting of traditional media; distrusters are less trusting of corporate sources GENERAL PUBLIC TRUST IN INFORMATION SOURCES – UNITED STATES Financial Services Industry Trusters Financial Services Industry Distrusters 83% 79% 77% 67% 64% 57% 39% 31% TRADITIONAL ONLINE MULTIPLE SOCIAL MEDIA CORPORATE SOURCES Q149-160. [TRACKING] Below is a list of places where you might get information about a company. For each, please indicate if you trust it a great deal, somewhat, not too much, or not at all as a source of information about a company. (Trust, Top 3-4), General Population, 25 country global total; [Trusters=Top 2 Box (8-9), Swing =5, Distrusters=Bottom 2 Box (1-2) on a 1-9 scale], General Population, U.S.12 © Edelman, 2012. All rights reserved.

Financial Services distrusters turn first to traditional media, are more likely than trusters to use online search engines for company announcements GENERAL PUBLIC FIRST SOURCE FOR COMPANY ANNOUNCEMENTS – UNITED STATES 40% 40% 36% 31% 28% 22% 18% 13% 11% 9% 7% 7% 7% 7% 4% Traditional Media Online Search Engines Owned Media Hybrid Media Social Media Financial Services Industry Trusters Financial Services Industry Swing Financial Services Industry DistrustersQ183. And when a company makes an announcement, such as a new CEO or financial earnings, which type of source would you go to first to find information about the companysannouncement? [Trusters=Top 2 Box (8-9), Swing =5, Distrusters=Bottom 2 Box (1-2) on a 1-9 scale], General Population, U.S. 13 © Edelman, 2012. All rights reserved.

Credibility of “person like me” and regular employee surges over the past year in the U.S.; CEO falls to the bottom two in 2012 CREDIBLE SPOKESPEOPLE – UNITED STATES 2011 2012 Academic or expert 67% Academic or expert 74% +7 Technical expert in the company 63% A person like yourself 71% + 39 NGO representative 35% Technical expert in the company 68% CEO 34% Regular employee 62% + 39 Financial or industry analyst 33% NGO representative 58% + 23 A person like yourself 32% Financial or industry analyst 47% + 14 Government official or regulator 28% CEO 34% Regular employee 23% Government official or regulator 31%Q119-126. [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, Credible: Very + Extremely Credible) Informed Publics ages 25-64 in United States14 © Edelman, 2012. All rights reserved.

A technical expert in a company is the most credible spokesperson among Financial Services trusters, while a “person like yourself” is most credible GENERAL PUBLIC among distrusters CREDIBLE SPOKESPEOPLE – UNITED STATES - 50 Gap - 49 Gap - 32 Gap - 35 Gap 65% 76% 80% 48% Industry 49% 27% Trusters most 15% trusted 14% #3 #6 #1 #4 #8 #5 #7 spokesperson #8 CEO Financial or Industry Technical Expert in Government Official Analyst the Company or Regulator Financial Services Industry TRUSTERS Financial Services Industry DISTRUSTERS 79% 74% - 26 Gap - 18 Gap 65% - 8 Gap 68% - 6 Gap 60% 57% 53% 42% Industry Distrusters #4 #1 #2 #3 #7 #5 #5 #2 most trusted spokesperson Academic or Expert NGO Representative Regular Employee Person Like YourselfQ119-126. 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? Total Credible (3-4), [Trusters=Top 2 Box (8-9), Swing =5, Distrusters=Bottom 2 Box (1-2) on a 1-9 scale], General Population, U.S.15 © Edelman, 2012. All rights reserved.

Skepticism requires repetition MAJORITY NEEDS TO HEAR INFO 3-5 TIMES TO BELIEVE UNITED STATES Ten or more times (10+), Once (1), 6% 10% Six to nine times (6-9), Twice (2), 12% 6% Three times (3), 34% Four or five times (4 - 5), 32% Three to five times (3-5) 66%Q148. [TRACKING] Think about everything you see or hear every day about companies, whether it is positive or negative. How many times in general do you need to beexposed to something about a specific company to believe that the information is likely to be true? Please enter the number of times below. (Excludes ‘Don’t Know’ responses)Informed publics ages 25-64 in the U.S. 16 © Edelman, 2012. All rights reserved.

Government performance is not meeting public’s expectations in the U.S. GENERAL PUBLIC UNITED STATES Government Importance Government Performance Gap 74% -57 LISTENS TO CITIZENS NEEDS AND FEEDBACK 17% 74% -56 COMMUNICATES FREQUENTLY AND HONESTLY 18% 72% -55 HAS TRANSPARENT AND OPEN PRACTICES 17% EFFECTIVELY MANAGES THE FINANCIAL AFFAIRS OF THE 71% -54 COUNTRY 17% CREATES INNOVATIVE PROGRAMS THAT POSITIVELY IMPACT 55% -37 LOCAL COMMUNITIES 18% 54% -34 WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT 20% PROVIDES NATIONAL TRAINING PROGRAMS TO CREATE 51% -35 EMPLOYMENT OPPORTUNITIES 16% PARTNERS WITH BUSINESS NGOS, AND THIRD PARTIES TO 37% ADDRESS SOCIETAL ISSUES -21 16%Q132-139. How important is each of the following actions to building your trust in government? Please use a nine-point scale where one means that action is not at all important to building your trustand nine means it is extremely important to building your trust. (Top 2 Box , Very/Extremely Important) General Population in United States; Q140-147. Please rate your government on how well youthink they are performing on each of the following attributes using a nine-point scale where one means they are performing "extremely poorly" and nine means they are performing "extremely well".(Top 2 Box , Performing Very/Extremely Well) General Population in the U.S.18 © Edelman, 2012. All rights reserved.

Financial Services distrusters feel business is not regulated enough by government; over one quarter of trusters believe business is regulated the GENERAL PUBLIC right amount VIEWS OF GOVERNMENT REGULATION OF BUSINESS – UNITED STATES 47% - 20 Gap 33% 31% 31% 27% 7% Too Much Right Amount Not Enough Financial Services Industry Trusters Financial Services Industry Distrusters Q130. When it comes to government regulation of business, do you think that your government regulates business too much, not enough or the right amount? [Trusters=Top 2 Box, Swing =5, Distrusters=Bottom 2 Box (1-2) on a 1-9 scale], General Population, U.S.19 © Edelman, 2012. All rights reserved.

Calls for greater protection and responsible behavior THINKS THE MOST IMPORTANT ROLE THAT GOVERNMENT SHOULD PLAY IN BUSINESS IS: GLOBAL 31% PROTECT CONSUMERS from irresponsible business practices 33% 25% REGULATE BUSINESS ACTIVITIES to ensure companies are behaving responsibly 24% 19% 11% BUILD INFRASTRUCTURE that promotes and facilitates business opportunities 16% 21% Work to ENSURE FREE MARKET ACCESS AND OPEN COMPETITION within industries 4% 1% GIVE OR LOAN MONEY TO BUSINESS when it experiences financial crisis 4% 8% Government SHOULD NOT PLAY A ROLE in businessQ131. Which of the following is the most important role that government should play in business? Informed Publics ages 25-64 in 25 country global total and U.S. 20 © Edelman, 2012. All rights reserved.

Business not meeting public’s expectations in the U.S. GENERAL UNITED STATES PUBLIC Gap Business HAS ETHICAL BUSINESS PRACTICES 76% -37 Importance 39% Company Performance LISTENS TO CUSTOMER NEEDS AND FEEDBACK 76% -34 42% OFFERS HIGH QUALITY PRODUCTS OR SERVICES 73% 56% -17 TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR A CRISIS 72% -34 38% TREATS EMPLOYEES WELL 71% -38 33% PLACES CUSTOMERS AHEAD OF PROFITS 70% -38 32% HAS TRANSPARENT AND OPEN BUSINESS PRACTICES 66% -34 32% COMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITS 65% -31 BUSINESS 34%CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITY 57% -26 IN WHICH THE COMPANY OPERATES 31% WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT 55% -21 34% ADDRESSES SOCIETYS NEEDS IN ITS EVERYDAY BUSINESS 54% -19 35% 51% -16 HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP 35% IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS 49% -2 47% DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS 48% -21 27% RANKS ON A GLOBAL LIST OF TOP COMPANIES, SUCH AS BEST 44% COMPANIES TO WORK FOR OR MOST ADMIRED COMPANIES 31% -13PARTNERS WITH NGOS, GOVERNMENT AND THIRD PARTIES TO ADDRESS 31% SOCIETAL ISSUES 21% -10 Q52-69. 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 Population in the US (excludes ‘Don’t Know’ responses);Q103-118. Please rate [INSERT COMPANY] on how well you think they are performing on each of the following attributes. Use a nine-point scale where one means they are performing “extremely poorly” and nine means they are performing “extremely well”. (Top 2 Box, Performing Very/ Extremely Well) General Population in the U.S.22 © Edelman, 2012. All rights reserved.

Ethical business practices and listening to customer needs and feedback are the most important attributes to building U.S. stakeholder trust in GENERAL PUBLIC Financial Services SOCIETAL FINANCIAL SERVICES INDUSTRY TRUST BUILDING ATTRIBUTES – UNITED STATES OPERATIONAL HAS ETHICAL BUSINESS PRACTICES 76% LISTENS TO CUSTOMER NEEDS AND FEEDBACK 74% PLACES CUSTOMERS AHEAD OF PROFITS 73% TAKES RESPONSIBLE ACTIONS TO ADDRESS ISSUE/CRISIS 71% TREATS EMPLOYEES WELL 70% COMMUNICATES FREQUENTLY & HONESTLY ON STATE OF ITS BUSINESS 69% OFFERS HIGH QUALITY PRODUCTS OR SERVICES 66% HAS TRANSPARENT AND OPEN BUSINESS PRACTICES 65% ADDRESSES SOCIETYS NEEDS IN ITS EVERYDAY BUSINESS 57% CREATES PROGRAMS TO POSITIVELY IMPACT LOCAL COMMUNITY 55% DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS 54% HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP 54% WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT 46% RANKS ON A GLOBAL LIST OF TOP COs/BEST COs 45% IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS 44%PARTNERS WITH NGOS, GOVT, THIRD PARTIES TO ADDRESS SOCIETAL ISSUES 38% Q70-85/Q86-101. Please think about businesses in the Financial Services Industry. How important is each of the following actions to building your trust in businesses in the Financial Services Industry? Please 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. [Top 2 Box, Trust - Very Important (8-9)], General Population, U.S. 23 © Edelman, 2012. All rights reserved.

U.S. Financial Services Industry: societal attributes are more important to GENERAL building future trust PUBLIC CURRENT TRUST BUILDING FUTURE TRUSTAttributes that Correlate with Current Trust Most Important Attributes that Build Trust 41% TRUST FINANCIAL SERVICES INDUSTRY 1) Has ethical business practices 1) Delivers consistent financial returns 2) Listens to customer needs and feedback 3) Places customers ahead of profits CURRENT TRUST 4) Takes actions to address issue or crisis DRIVEN BY OPERATIONAL ATTRIBUTES 5) Treats employees well 6) Communicates frequently and honestly 7) High quality products or services Societal 8) Has transparent and open business Operational 9) Addresses societys needs 10) Positively impacts the local community 11) Delivers consistent financial returns 11) Highly regarded, top leadership 13) Works to protect/improve environment 14) Ranks on a global list 15) Innovator of new products 16) Partners with third parties Q16-26. [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 the U.S.; Q70-85/Q86-101. Please think about businesses in the [INSERT INDUSTRY] industry. How important is each of the following actions to building your trust in businesses in the [INSERT INDUSTRY] industry? Please 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”. (Top 2 Box, Very/ Extremely Important) General Population in the U.S. (excludes ‘Don’t Know’ responses) * ‘Current Trust’ results based on regression analysis of the general population 24 © Edelman, 2012. All rights reserved.

Financial Services Industry needs to win back trust in order to re-earn license to operate Exercise principles-based leadership, not rules-based performance Recognize that operational factors responsible for current trust won’t build future trust; societal and engagement behaviors will Prepare for crisis, and if one occurs, do the right thing Use the channels and spokespeople who are most trusted Build trust among those who don’t trust you yet Exercise utilizing frequent communications channels25 © Edelman, 2012. All rights reserved.

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2012 Edelman Trust Barometer: U.S. Financial Services and Banking Industries

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