FirstBank, GTBank, Zenith in global list of top 500 brands
Three Nigerian banks have been listed among 'The Top 500 Banking Brands' of the world in 2014, in an annual ranking of global banking and other financial institutions.
A release by the Banker Magazine Country Representative Nigeria, Mr Kunle Ogedengbe, said First Bank of Nigeria Limited, for the third consecutive year was ranked as Nigeria's number one banking brand in the 2014 Top 500 Banking Brands Ranking of the world just released by The Banker Magazine a publication of Financial Times Group in its February edition and Brand Finance in the United Kingdom.
FirstBank is ranked 382 in the world from 414 last year. The brand value of the bank also increased to $228 million from $201 million from the preceding year. Guaranty Trust Bank ranked 422 from 415 while Zenith Bank is ranked 453 from 454 last year. Apart from the three banks, no other Nigerian bank made the ranking.
Brand Finance is the world's leading brand valuation consultancy which advises branded organisations on how to maximise their value through the effective management of their brands and intangible assets.
According to The Top 500 Banking Brands report, though there are numerous ways of calculating brand value, Brand Finance which complied 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.
According to the Africa Editor of the magazine, Mr Paul Wallace, brand value of Nigerian banks increased by three per cent to $593 million. This made Nigeria to be among the Top 50 countries of the world by total brand value.