Top 500 Banking Brands: See the 5 Nigerian Banks that Made the List

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Five Nigerian banks have been named among ‘The Top 500 Banking Brands’ of the Financial Times and Brand Finance’s, ‘Banker magazine’, United Kingdom.

The five banks are First Bank of Nigeria Limited, Guaranty Trust Bank Plc, Zenith Bank Plc, Access Bank Plc and the United Bank for Africa Plc.

The Banker magazine’s Country Representative, Mr. Kunle Ogedengbe, speaking on Sunday said First Bank led the four other Nigerian banks in the global ranking. First Bank was named The Most Valuable Banking Brand in Nigeria.

Top 500 Banking Brands

This will be the sixth consecutive time, First Bank of Nigeria Limited will be named the most valuable banking brand in Nigeria in the global ranking.

First Bank is the only Nigerian bank in the top 10 banking brands in Africa along with nine others banks from South Africa, Egypt and Morocco.

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With $301m brand value, First Bank ranked 357th, leading GTB which ranked 395th with a brand value of $258m; Zenith Bank ranked 414th with a brand value of $247m; Access Bank ranked 476th with a brand value of $182m; and UBA with a brand value of $172m ranked 487th in the world.

David Haigh, the Chief Executive Officer of Brand Finance, explains that the brand value is the amount a third party will need to pay in using the brand name.

Explaining the methodology of the rankings, The Banker magazine’s editor, Brian Caplen, was quoted as saying;

“Brand Finance employs a discounted cashflow technique to discount estimated future royalties at an appropriate rate to arrive at a net present value of a bank’s trademark and associated intellectual property – its brand value.”

He noted that the approach was used for two reasons: it is favoured by the 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.

Caplen stressed that the process involved five steps of obtaining brand-specific financial and revenue data; modeling the market to identify market demand and the position of individual banks in the context of all other market competitors; establishing the royalty rate for each bank; calculating the discounted rate specific to each bank, taking account of its size, geographical presence, reputation, gearing and brand rating; and discounting future royalty stream (explicit forecast and perpetuity periods) to a net present value – the brand value.

He said the approach was used for two reasons: ‘It is favoured by the tax authorities and the courts because it calculates brand value by reference to documented third-party transactions and it can be done based on publicly available financial information.’

Globally, deputy editor of the magazine, Joy Macknight said the Industrial and Commercial Bank of China was number one with a brand value of $47.832 billion followed by Wells Fargo of the United States with a brand value of $41.618 million.

The top ten banking brands in the world were shared by four countries, China and the U.S. with four each while the United Kingdom and Spain got one each.

The other eight banks in the top ten banking brands were China Construction Bank, JP Morgan Chase & Co., Bank of China, Bank of America, Agricultural Bank of China, Citibank (USA), HSBC (UK), and Satander (Spain).

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Of the top 50 countries in the world, only four African countries made the list. These are South Africa (26), Nigeria (42), Egypt (46) and Morocco (47).