2014 Edelman Trust Barometer: Financial Services Industry

1. 2014 TRUST BAROMETER EDELMAN FINANCIAL SERVICES INDUSTRY RESULTS

2. EDELMAN'S 14TH ANNUAL SURVEY, LARGEST GLOBAL EXPLORATION OF TRUST 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 2

3. 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

4. ONE | The State of Trust

5. FINANCIAL SERVICES CONTINUES TO BE THE LEAST TRUSTED INDUSTRY GLOBALLY TRUST IN INDUSTRIES, 2013 VS. 2014 2013 2014 77% Technology Consumer electronics manufacturing 73% 69% Automotive 2013 VS. 2014 79% Technology Consumer electronics manufacturing 75% 70% Automotive +2 +2 +1 Food and beverage 66% Food and beverage 66% 0 Consumer packaged goods 65% Consumer packaged goods 65% 0 Entertainment 65% Entertainment 65% 0 Brewing and spirits 62% Brewing and spirits 64% +2 Telecommunications 62% Telecommunications 63% +1 Consumer health companies 59% Consumer health companies 60% +1 Energy 59% Energy 59% 0 Pharmaceuticals 58% Pharmaceuticals 59% +1 Chemicals 56% Chemicals Media 53% 55% -1 Media 51% -2 Banks Banks 51% +1 Financial services 5 50% 50% Financial services 50% 0 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.

6. WHEN LOOKING AT SECTORS, BANKS AND CREDIT CARDS/PAYMENTS ARE MOST TRUSTED GLOBALLY, WHILE FINANCIAL ADVISORY/INSURANCE ARE LEAST TRUSTED TRUST IN FINANCIAL SERVICES INDUSTRY – GLOBAL 48% Financial services Industry 6 52% 52% 47% Banks Credit cards/payments 46% Insurance Financial advisory/asset management 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

7. APAC AND BRICS ARE MOST TRUSTING OF THE INDUSTRY TRUST IN FINANCIAL SERVICES INDUSTRY – BY REGION 62% 61% 54% 48% 51% 29% GLOBAL 7 APAC BRIC Latin America North America 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 EU

8. APAC COUNTRIES ARE MOST TRUSTING OF THE INDUSTRY TRUST IN FINANCIAL SERVICES INDUSTRY – 27 MARKET OVERVIEW APAC Latin America North America EMEA 76% 71% 70% 69% 68% 66% 63% 62% 57% 57% 56% 55% 50% 48% 46% 44% 42% 40% 39% 37% 36% 32% 31% 31% 25% 24% 23% 23% 8 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 76% 74% 74% 71% 71% 72% 70% 69% 60% 68% 66% 66% 59% 63% 62% 59% 57% 53% 57% 53% 56% 56% 55% 50% 48% 47% 46% 43% 38% 44% 42% 46% 42% 40% 42% 40% 39% 37% 37% 36% 35% 32% 33% 31% 31% 31% 30% 26% 25% 24% 21% 28% 23% 23% 18% 0% 9 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.

10. GLOBALLY, TRUST IN THE FINANCIAL SERVICES INDUSTRY IS ONLY SLIGHTLY LOWER THAN TRUST IN BUSINESS TRUST IN FINANCIAL SERVICES INDUSTRY VS. TRUST IN BUSINESS - GLOBAL 48% TRUST IN THE FINANCIAL SERVICES INDUSTRY 100% 90% 80% 70% 60% 49% TRUST IN BUSINESS 10 50% 40% 30% 20% 10% 0% 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 FINANCIAL SERVICES Industry Trust (48%) Business Trust (49%)

11. TRUST IN FINANCIAL SERVICES IS HIGHER THAN TRUST IN BUSINESS IN 12 OF 27 MARKETS, MANY OF WHICH ARE DEVELOPING TRUST IN FINANCIAL SERVICES INDUSTRY VS. BUSINESS IN GENERAL – 27 MARKET OVERVIEW Financial Services Industry Business 76% 71% 70% 69% 68% 68% 65% 66% 64% 63% 62% 62% 63% 62% 60% 57% 57% 56%57% 55% 55% 55% 54% 50% 48% 49% 46% 44% 48% 49% 41% 32% 56% 49% 45% 45% 42% 39% 40% 38%37% 36% 33% 43% 32% 33% 31% 31% 41% 34% 26% 25% 24% 11 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 41% 23% 23%

12. TECH COMPANIES ARE MOST TRUSTED, WHILE FINANCIAL SERVICES AND PHARMA ARE THE LEAST TRUSTED TRUST IN FINANCIAL SERVICES INDUSTRY VS. BLINDED COMPANIES – GLOBAL 78% 69% 67% 64% 64% 61% 59% 55% 55% 52% 49% 48% 48% 32% Tech Co. 1 Pharma Co. Tech Co. 2 Food & Bev Food & Bev Energy Co. Energy Co. Food & Bev Pharma Co. Tech Co. 3 Food & Bev Pharma Co. Financial Pharma Co. 1 Co. 1 Co. 2 1 2 Co. 3 2 Co. 4 3 Services 4 Industry 12 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.

13. FINANCIAL SERVICES INDUSTRY TRUSTERS AND DISTRUSTERS ARE MOST TRUSTING OF ONLINE SEARCH ENGINES; DISTRUSTERS ARE LESS TRUSTING OF MEDIA SOURCES GENERALLY TRUST IN MEDIA SOURCES – FINANCIAL SERVICES INDUSTRY TRUSTERS VS. DISTRUSTERS TRUSTERS IN FINANCIAL SERVICES INDUSTRY 75% DISTRUSTERS IN FINANCIAL SERVICES INDUSTRY 75% 62% 42% 61% 59% 46% 29% 27% 22% TRADITIONAL MEDIA ONLINE SEARCH ENGINES HYBRID MEDIA OWNED MEDIA SOCIAL MEDIA 13 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.

14. EXPERTS & PEERS REMAIN THE MOST CREDIBLE SPOKESPEOPLE CREDIBLE SPOKESPEOPLE – FINANCIAL SERVICES INDUSTRY TRUSTERS VS. DISTRUSTERS TRUSTERS IN FINANCIAL SERVICES INDUSTRY DISTRUSTERS IN FINANCIAL SERVICES INDUSTRY A technical expert within the company, such as an engineer or scientist 74% 57% 73% An academic or expert on that company's industry or issues 58% 65% A person like yourself 58% 65% A financial or industry analyst 40% 57% A non-profit organization or ngo representative 44% 57% A ceo of a company 28% 56% A company's board of directors 27% A regular employee of a company 55% 51% An entrepreneur 54% A government official or regulator A blogger 14 32% 45% 23% 29% 19% 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

15. TWO | Building Trust

16. 16 ATTRIBUTES KEY TO BUILDING TRUST ENGAGEMENT LISTENS TO CUSTOMER NEEDS AND FEEDBACK TREATS EMPLOYEES WELL PLACES CUSTOMERS AHEAD OF PROFITS COMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITS BUSINESS Edelman Trust Barometer research reveals 16 specific attributes which build trust. INTEGRITY HAS ETHICAL BUSINESS PRACTICES TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR CRISIS HAS TRANSPARENT AND OPEN BUSINESS PRACTICES These can be grouped into five performance clusters listed here in rank order of importance. PRODUCTS & SERVICES OFFERS HIGH QUALITY PRODUCTS OR SERVICES IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS PURPOSE 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 OPERATIONS HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP RANKS ON A GLOBAL LIST OF TOP COMPANIES 16 DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS

17. ENGAGEMENT AND INTEGRITY: PRIORITY AREAS FOR COMPANIES TO BUILD TRUST BUSINESS IMPORTANCE VS. BUSINESS PERFORMANCE ON 16 TRUST DRIVERS - GLOBAL TRUST-BUILDING OPPORTUNITY QUADRANT UNDER-PERFORMING ON HIGH PRIORITIES HIGH-PERFORMING ON HIGH PRIORITIES ENGAGEMENT STATED IMPORTANCE PRODUCTS & SERVICES INTEGRITY PURPOSE UNDER-PERFORMING ON LOWER EXPECTATIONS OPERATIONS Now tablestakes, in 2008 Operations were much higher in importance for building trust. HIGH-PERFORMING ON LOWER PRIORITIES STATED PERFORMANCE 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 17 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 9point 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.

18. A COMPANY EMPLOYEE IS THE MOST TRUSTED SPOKESPERSON TO PROVIDE CREDIBLE AND HONEST INFORMATION MOST TRUSTED INFLUENCER TO COMMUNICATE EACH TOPIC - INFLUENCER MESSAGE MAPPING COMPANY'S CEO COMPANY'S EMPLOYEE ACTIVIST CONSUMER ACADEMIC MEDIA SPOKESPERSON 50% 37% 31% 32% 32% 30% 31% 27% 25% 21% 21% 21% 30% 27% 23% 23% 22% 19% INTEGRITY PRODUCTS & SERVICES 25% 21% 16% 14% 13% 12% ENGAGEMENT 26% 24% 17% 15% 36% 34% PURPOSE OPERATIONS 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 18 select which person you trust MOST to provide you with credible and honest information about a company. General Publics, 27-country global total. TOTALS

19. TRUST IN THE BANKING INDUSTRY HAS INCREASED IN DEVELOPING MARKETS BUT DECREASED IN MANY DEVELOPED MARKETS TRUST IN BANKS, 2009 VS. 2014 2009 2014 91% 87% 85% 79% 82% 79% 80% 78% 77% 74% 68% 64% 62% 60% 59% 58% 53% 51% 47% 58% 53% 53% 53% 52% 52% 50% 48% 46% 43%42% 36% 40% 38% 32% 38% 34% 33% 32% 32% 29% 24% 31% 28% 26% 25% 23% 26% 16% N.A. 19 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. 15%

20. INFORMED PUBLICS FAVOR INCREASED REGULATION OF THE FINANCIAL SERVICES INDUSTRY Not Enough Regulation of Business Not Enough Regulation for Financial Services 81% 71% 73% 64% 63% 62% 60% 60% 58% 57% 56% 55% 53% 52% 51% 49% 49% 48% 42% 66% 64% 61% 57% 51% 47% 49% 44% 52% 47% 43% 42% 42% 38% 44% 45% 38% 38% 38% 47% 36% 34% 33% 33% 49% 37% 32% 31% 30% 29% 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 20 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, 27country 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. 26% 26% 39% 23%

21. COUNTRIES WITH HIGHER TRUST IN THE INDUSTRY HAVE LESS DESIRE FOR INCREASED REGULATION TRUST IN FINANCIAL SERVICES VS. DESIRE FOR MORE REGULATION OF FINANCIAL SERVICES Trust in Financial Services Not Enough Regulation for Financial Services 53% 21 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.

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 …it will have its greatest impact in these clusters If companies exhibit these positive behaviors... ENSURES QUALITY CONTROL IN PRODUCTS 86% ENGAGEMENT INTEGRITY PRODUCTS & SERVICES 85% PROTECTS CUSTOMER DATA ENGAGEMENT INTEGRITY PRODUCTS & SERVICES 85% RESPECTS EMPLOYEE RIGHTS RESPONSIBLE SUPPLY CHAIN MANAGEMENT PAYS APPROPRIATE LEVEL OF TAX 83% 80% ENGAGEMENT INTEGRITY ENGAGEMENT INTEGRITY ENGAGEMENT INTEGRITY PURPOSE 22 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.

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 …it will have its greatest impact in these clusters If companies exhibit these negative behaviors... 81% UNETHICAL BUSINESS PRACTICES ENGAGEMENT FAILS TO KEEP CUSTOMER INFORMATION SECURE 80% INTEGRITY IRRESPONSIBLE DURING A CRISIS 80% INTEGRITY INTEGRITY SUB-STANDARD WORK CONDITIONS 79% ENGAGEMENT INTEGRITY MISREPRESENTS THE COMPANY 79% ENGAGEMENT INTEGRITY 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 23 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.

24. A NEW TRUST ENVIRONMENT 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. Operations and CSR programs are now tablestakes. Business must focus on Engagement and Integrity to build trust. 84% believe a company can take specific actions that both increase profits improve the economic and social conditions in the and communities where it operates. CEO must become Chief Engagement Officer 24

25. WE NEED TO EVOLVE… From only to include Micro Macro Transactional Shared Value(s) Legal Requirements Societal Expectations What How and Why

26. BUSINESS TO LEAD THE DEBATE FOR CHANGE Participate Advocate Offer a clearly articulated strategy that delivers context. Engage and enable to amplify. Create mass movement. Evaluate 26 Partner, listen and build relationships to inform strategy. Establish transparent metrics. Report frequently. Acknowledge performance and amend as needed.

27. 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