5 Nigerian banks - First Bank of Nigeria Limited, Zenith Bank Plc, Guaranty Trust Bank Plc (GTBank), United Bank for Africa (UBA) Plc and Access Bank Plc - have been named one of the 500 largest banking brands in the world.
FirstBank was named as the most valuable bank trademark in Nigeria in the report.
According to the country representative of The Banker magazine, Mr. Kunle Ogedengbe, FirstBank has led four other Nigerian banks in the world ranking.
With a brand value of $ 301 million, FirstBank ranked 357, followed by GTBank, which was ranked 395 with a brand value of $ 258 million. Zenith Bank was ranked at 414 with a brand value of $ 247 million, Access Bank is ranked 476 with a brand value of $ 182 million, while UBA with a brand value of $ 172 million 487 dollars worldwide.
According to Brand Finance CEO David Haigh, the value of the brand is the amount that a third party will pay for the use of the brand.
Explain the methodology for ranking, Brian Caplen, Editor-in-Chief of The Banker, said: "Brand Finance uses an updated cash flow technique to discount estimated future royalties at an appropriate rate to arrive at a net present value of Brand of a bank and associated intellectual property - its brand value ".
Caplen pointed out that the process involved five steps to obtain specific financial and revenue data from the brand; Shaping the market to identify market demand and the position of different banks in the context of all other competitors in the market; Set the royalty rate for each bank; Calculate the specific discount for each bank, given its size, geographic presence, reputation, rating and brand; And the updating of the future flow of royalties (explicit forecasts and perpetuity) to a net present value - the value of the brand.
He said the approach has been used for two reasons: "It is favored by the tax authorities and the courts because it calculates the value of the mark by reference to documented third party transactions and can be done on the basis of Financial information accessible to the public ".
Joy Macknight, deputy director of the magazine, said the Industrial and Commercial Bank of China was number one with a brand value of $ 47.832 million, followed by Wells Fargo United States with a brand value of $ 41.618 million.
The four major banking brands in the world were shared by four countries, China and the United States, with four each, while Great Britain and Spain scored one each.
The eight other banks in the top ten were China Construction Bank, JP Morgan Chase & Co., Bank of China, Bank of America, Citibank (United States), HSBC (United Kingdom) and Satander Spain).
Of the top 50 countries, only four African countries have listed. It is South Africa (26), Nigeria (42), Egypt (46) and Morocco (47).
FirstBank was the only Nigerian bank in the top 10 banking brands in Africa and nine other banks in South Africa, Egypt and Morocco.