According to a recent report released by The Banker Magazine of Financial Times and Brand Finance in the United Kingdom, First Bank of Nigeria, Guaranty Trust Bank and Zenith Bank have been named in the list of top 500 bank brands in the world.
First Bank was ranked 382 from 414th position last year. Guaranty Trust ranked 422 from 414 last year while Zenith inched up to 453 from 454 last year.
The top 3 bank brands are Wells Fargo (USA), HSBC (UK)and Bank of America (USA).
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.
