• Tuesday, March 05, 2024
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BusinessDay

First Bank, GTB, Zenith named among World’s most valuable 500 banks

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First Bank, Guaranty Trust Bank and Zenith Bank are among the World’s 500 most valuable bank brands in 2014 global rankings by Brand Finance plc, the World’s leading Brand Valuation Consultancy.

A statement made available to financial journalists in Lagos by The Banker/Brand Finance Banking 500, rated First Bank as Nigeria’s most valuable bank brand, the seventh most valuable bank brand in Africa and 382nd globally.

The Banker/Brand Finance Banking 500 is an annual study conducted by Brand Finance Plc.

The Worlds’ biggest banks are ranked by their brand value with the results reflecting industry trends and indication of future developments.

The statement explained that First Bank in 2014 recorded a brand value of US$228 million, following a 13.44 per cent increase over its US $201 million brand value by ranking in 2013. Guaranty Trust Bank is 10th on the African ladder with a brand value of US$191 million, declining by nearly 5 per cent compared to its brand value of US$201 million recorded in 2013.

Zenith Bank made 11th Africa’s most valuable banking brand with a brand value of US$174 million in 2014, representing a marginal increase of 1.21 per cent over US$172 million it recorded in 2013.

According to the statement, Standard Bank holds its position as Africa’s most valuable banking brand.

It said that Standard Bank of South Africa recorded a brand value growth of over 15 per cent which took its total value to nearly US$ 1.6 billion.

The US$ 211 million increase is by far the biggest improvement of many African banks and stands in marked contrast to other brands from South Africa.

ABSA, Nedbank, and First National bank have all seen their brand values fall.

“As a result, despite Standard Bank’s success, the total brand value of South Africa’s top banks is down 4 per cent to US$5.68 million,’’ the statement said.

The statement pointed out that “Togo’s Ecobank, which is Africa’s most valuable bank brand to be based outside South Africa, has grown by 14.51 per cent to a total of US$243 million and improved its global rank by 32 places’’.

It said that Morocco Banque Populaire re-entered The Banker/Brand Finance Banking 500 to bring the total number of African banks in the table to 12.

On the Global Scene, Well’s Fargo held its position as the World’s most valuable banking brand with a total brand value of over US$30billion. HBSC’s brand value has grown by US$4 billion, while UBS is up US$3.35billion, a 46 per cent increase.

Meanwhile, results from elsewhere in the world included the halting of rapid growth in some BRIC countries, namely Russia, India and Brazil.

“Their national brand value totals are down 6 per cent, 13 per cent and 23 per cent respectively.China, however, continues to grow strongly. Its banks have added a total of nearly US$19 billion and there are now three Chinese bank brands (ICBC, China Construction Bank and Agricultural Bank of China) in the global top 10,’’ the statement said.

The Chief Executive Officer of Brand Finance Plc, David Haigh, said, “Nigerian banks have put in another impressive performance in the Brand Finance Banking 500 this year’’.

According Haigh, a bank such as FBN (First Bank of Nigeria Plc) has benefitted from prudent financial management and Nigeria’s economic growth.

“However the most important factor has been an understanding that banks must prioritise their intangible assets, measuring, monitoring and managing their brands to achieve sustainable growth and maximise value,’’ the CEO said.

The Country Representative, Brand Finance, Babatunde Odumeru said, “The fact that First Bank of Nigeria continues to grow its brand value and move up the global ranking is a welcome news’’.

Odumeru said that other banks, such as GTB and Zenith fared well.

“However this year’s global result indicates that Nigerian banks really need to do more in channelling their orientation towards managing and exploiting their intangible assets which are fast becoming the key driver of their business.”