FirstBank of Nigeria Limited,
Zenith Bank Plc,
Guaranty Trust Bank Plc (GTBank) and
Access Bank Plc
have been ranked number one banking
brand in Nigeria among the ‘Top 500 Banking
Brands’ by The Banker magazine of the Financial
Times and Brand Finance, London, in 2015.
A report on Monday revealed that for the fourth
consecutive year, FirstBank of Nigeria has been
ranked number one banking brand in Nigeria.
Country Representative of The Banker magazine -
Nigeria, Mr. Kunle Ogedengbe, explained that
FirstBank moved from being number 382 in 2014
to 336 in the 2015 edition.
Other Nigerian banks that also made the ranking
are Zenith Bank, which moved to number 388
from 453 in 2014, GTBank, which moved to 417
from 422, while Access Bank made first entry into
the ranking.
It showed that the Brand value of FirstBank
increased to $300 million in 2015 from $228 in
2014 and according to the Economics editor of
the magazine, Silvia Pavoni, the brand value is
“the licensing rate that a third-party would need
to pay to use that company's brand.”
Commenting on the methodology of the ranking,
Pavoni said Brand Finance obtained brand-
specific financial and revenue data; modeled the
market to identify market demand and the position
of individual banks in the context of all other
market competitors; established the royalty rate
for each bank; calculated the discount rate
specific to each bank, taking account of its size,
geographical presence, reputation, gearing and
brand rating and discounted future royalty stream
(explicit forecast and perpetuity periods) to a net
present value which is the brand value.
This approach, the Economics editor noted, “is
used for two reasons: 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.”
Globally, Wells Fargo of the United States of
America retained the number one banking brand
in the world for the third consecutive year and
was followed by banks in China, United Kingdom
and Spain in the first ten.
Wells Fargo’s brand value for 2015 is $34.9
billion as against $30.2 billion in 2014, an
increase of $4.7 billion.
According to the report, the first 10 banks in the
world are Well Fargo (USA); ICBC (China); HSBC
(UK); China Construction Bank; Citibank, Bank of
America, Chase (USA); Agricultural Bank of China;
Bank of China; and Santander (Spain).
On the rise of Chinese banks, the chief operating
officer of Brand Finance, Mr. Bryn Anderson noted
that “the Chinese economy has been doing well
for a number of years but I think this has been
the first year, in terms of brand value, when
Chinese banks have climbed up the tables and
stood out.”
Tags: Business , Nigeria , Featured , Banks