• Wednesday, July 17, 2024
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Stanbic IBTC emerges Nigeria’s fastest-growing brand

Stanbic IBTC emerges Nigeria’s fastest-growing brand

Stanbic IBTC, a financial service holding company, emerged as the fastest-growing brand in Nigeria, a new report by Brand Finance, a London-based brand valuation consultancy, has said.

The report, which analysed data from March 2023 to March this year, said the bank’s brand value almost tripled within the period.

“The bank spiked interest income and improved profits also contributed to a brand value increase of 184 percent to N75 billion, making it the fastest-growing brand in the ranking,” the report said.

It also revealed that Access Bank maintains its dominance as the country’s most valuable brand, with a 73 percent increase in brand value to N355.3 billion.

“This makes it the 31st most valuable brand across Africa in the Brand Finance Africa 200 2024. The brand value increase stems from improved revenues, primarily driven by significant growth in its interest-based income,” the report said.

It noted that Guaranty Trust Holding Company, with brand value up 31 percent to N186.8 billion, was Nigeria’s strongest brand with impressive scores across consideration, reputation, and price premium.

“Perceptions of its price premium further highlight the strong position of banking brands in Nigeria, and their ability to command higher prices in response to inflationary pressures.”

Brand value is understood as the net economic benefit that a brand owner would achieve by licensing the brand in the open market. Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors.

Brand Finance analysed banking brands’ internationality to better understand their positioning and performance in an increasingly globalised market. It adopted the royalty relief approach in measuring organisation brand value. The method involves a combination of the market and income valuation approaches.

Authors of the report also revealed that banking brands dominated Nigeria’s brand landscape despite currency devaluation and rising inflation. The banking brands made up half the total brand value of the nation’s top 25 brands, with five banks ranking among the top seven.

“Within the ranking, the most valuable, strongest, and fastest-growing brands belong to the banking sector. Despite the declining value of the naira, Nigeria’s top banking brands have successfully raised prices without harming their brand strength, as shown by improved Brand Strength Index scores for all brands across the ranking,” the report said.