A new report has listed Zenith Bank Plc, First Bank of Nigeria Limited, Guaranty Trust Bank and Access Bank Plc among the top 500 banks in the world.
The United Kingdom-based magazine owned by the Financial Times, The Banker,and Brand Finance in London, in their annual 2015 top 500 banking brands, also ranked First Bank of Nigeria as the number one banking brand in the country for the fourth consecutive time.
According to a statement by the Country Representative of the magazine in Nigeria, Mr. Kunle Ogedengbe, First Bank moves from being number 382 in 2014 to 336 this year.
Zenith Bank moved from 453 in 2014 to 388th position; Guaranty Trust Bank from 422 to 417; while Access Bank made its first entry into the ranking.
The brand value of First Bank has increased to $300m this year from $228 in 2014. 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.”
Pavoni also commented on the methodology of the ranking, noting the Brand Finance obtained brand-specific financial and revenue data; modelled the market to identify the demand and the position of individual bank 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 said, “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.”
Wells Fargo of the United States, the report stated, retained the number one banking brand in the world for the third consecutive year and was followed by banks in China, the United Kingdom and Spain in the first 10. Wells Fargo’s brand value for 2015 was put at $34.9bn as against $30.2bn in 2014, which showed an increase of $4.7bn.
Zenith Bank Plc,