L
LequteMan
Guest
According to The Top 500 Banking Brands report by Brand Finance, three Nigerian banks out of the 24 banks in the country are among the 500 most ranked global bank brand. The three banks are First Bank Plc (382), GTbank Plc (422) and Zenith Bank Plc(453).
Ecobank Transnational Incorporated was however ranked the most valuable brand in Africa – outside South Africa – in the annual ranking of the global banking and financial magazine ‘The Banker’ in its special edition Brand Finance Banking 500 of February 2014.
The top 10 banking brands in the world remain in America, Europe and Asia. The 2014 number one banking brand in the world is Wells Fargo (USA) which was second last year. It is followed by HSBC (UK) Bank of America, Citi, JP Morgan Chase (all from USA), ICBC (China), BNP Paribas (France), Santander (Spain), China Construction Bank and Agricultural Bank of China.
Although there are numerous ways of calculating brand value, Brand Finance which compiled the ranking used royalty relief method that values the brand based on what would be paid to use the brand if it were owned by a third party. The method is recognised by courts and tax authorities.
The valuations of the brand take into account brand-specific financial and revenue data, model the market to identify market demand and the position of individual banks in the context of all other market competitors, establish the royalty rate for each bank, calculate the discount rate specific to each bank (taking account of its size, geographical presence, reputation, gearing and brand rating) and discount future royalty stream to a net present value, that is, the brand value.
Ecobank Transnational Incorporated was however ranked the most valuable brand in Africa – outside South Africa – in the annual ranking of the global banking and financial magazine ‘The Banker’ in its special edition Brand Finance Banking 500 of February 2014.
The top 10 banking brands in the world remain in America, Europe and Asia. The 2014 number one banking brand in the world is Wells Fargo (USA) which was second last year. It is followed by HSBC (UK) Bank of America, Citi, JP Morgan Chase (all from USA), ICBC (China), BNP Paribas (France), Santander (Spain), China Construction Bank and Agricultural Bank of China.
Although there are numerous ways of calculating brand value, Brand Finance which compiled the ranking used royalty relief method that values the brand based on what would be paid to use the brand if it were owned by a third party. The method is recognised by courts and tax authorities.
The valuations of the brand take into account brand-specific financial and revenue data, model the market to identify market demand and the position of individual banks in the context of all other market competitors, establish the royalty rate for each bank, calculate the discount rate specific to each bank (taking account of its size, geographical presence, reputation, gearing and brand rating) and discount future royalty stream to a net present value, that is, the brand value.
