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, whach showed an
increase of $4.7bn.
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