As many as five Nigerian banks have made an entry into the top 500 banking brands in the world.
First Bank of Nigeria
It has been revealed that First Bank of Nigeria Limited has been
named the most valuable banking brand in Nigeria in the Top 500 Banking
Brands of The Banker magazine of the Financial Times and Brand Finance,
London, United Kingdom.
Premium Times reports that the bank, which is also the only
Nigerian bank in the top 10 banking brands in Africa, along with nine
other banks from South Africa and Morroco, is being named for the sixth
consecutive time.
According to a press release issued on Sunday by the Country
Representative, Nigeria, The Banker magazine, Kunle Ogedengbe, First
Bank leads four other Nigerian banks in the global ranking.
With $301 million brand value, First Bank ranked 357 led Guaranty
Trust Bank, GTB, ranked 395 with a brand value of $258 million, and
Zenith Bank 414 with a brand value of $247 million.
Access Bank followed at 476 with a brand value of $182 million and
the United Bank for Africa (UBA) with a brand value of $172 million
ranked 487 in the world.
While explaining the methodology of the ranking, the Editor, The
Banker, Brian Caplen, said that Brand Finance employs a discounted cash
flow technique to discount estimated future royalties at an appropriate
rate to arrive at a net present value of a bank’s trademark and
associated intellectual property.
Mr. Caplen explained that the process involved five steps which
include obtaining brand-specific financial and revenue data; modelling
the market to identify market demand and the position of individual
banks in the context of all other market competitors.
He added further that it will also establish the royalty rate for
each bank; calculate the discounted rate specific to each bank, taking
account of its size, geographical presence, reputation, gearing and
brand rating; and discount future royalty stream (explicit forecast and
perpetuity periods) to a net present value.
Mr. Caplen disclosed that the approach is used for two reasons,
noting that it is favoured by tax authorities and the courts because it
calculates brand values by reference to documented third-party
transactions, and it can be done based on publicly available financial
information.
The deputy editor of the magazine, Joy Macknight, said on the
global front, Industrial and Commercial Bank of China is number one with
a brand value of $47,832 million followed by Well Fargo of the United
States of America with a brand value of $41,618 million.
The remaining eight banks in the top ten are China Construction
Bank, Chase (JP Morgan & Co of the USA), Bank of China, Bank of
America, Agricultural Bank of China, Citibank (USA), HSBC (UK), and
Satander (Spain) noted Macknight.
According to the realease, in the top 50 countries in the world,
only four African countries made the list. These are South Africa (26),
Nigeria (42), Egypt (46) and Morocco (47).
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