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Best and worst bank brands in South Africa 2016

Best and worst bank brands in South Africa 2016

The latest Brand Finance report on banking shows which South African banks have the most valuable brands in 2016.

Standard Bank has overtaken Absa and FNB as the most valuable banking brand in the country, climbing two spots since the 2015 ranking – increasing its brand value by 4.4% to $1.32 billion (R20.6 billion) over the past 12 months.

This is still down from the $1.6 billion brand value it scored in 2014, however.

Except for Standard Bank, and Capitec as a new entry, all South African banks lost brand value over the past 12 months.

Absa, which was the number one bank in South Africa in 2015, has dropped to third in the country at a brand valuation of $1.02 billion (R15.9 billion), down from $1.6 billion last year.

The Brand Finance report was released before the recent announcement by Barclays that it would be selling off its majority stake in Barclays Africa (Absa), thus this new information was not factored into the group’s overall brand positioning.

What was likely factored in was the much maligned “9/12”, where president Jacob Zuma fired then finance minister Nhlanhla Nene on an apparent whim, resulting in the South African economy losing as much as R500 billion in manner of weeks.

The South African finance sector was one of the hardest hit by the crumble.

First National Bank retained its position as the second most valuable bank in the country, worth $1.05 billion (down from $1.4 billion), with Nedbank and Wesbank rounding off the top 5 banking groups.

Capitec made its debut on the top 500 ranking, listed as the sixth most valuable bank in South Africa, and coming in at 347th overall.

These are the most valuable banks in South Africa:

2016 2015 Bank 2015 Brand Value ($m) 2016 Brand Value ($m) Change
134 136 Standard Bank 1 264 1 319 +4.4%
154 129 FNB 1 385 1 050 -24.2%
158 117 Absa 1 585 1 016 -35.9%
170 140 Nedbank 1 169 934 -20.1%
173 175 Investec 883 900 +1.9%
292 283 Wesbank 416 384 -7.7%
347 New Capitec New 280 New
469 408 Rand Merchant Bank 221 177 -19.9%

Investec, which was previously listed under South Africa, is now listed as a UK banking group. The bank saw an overall climb in the rankings from 175th in 2015, to 173rd in 2016.

Brand Finance determines its brand value rankings by looking at all things related to a banking group and its brand – defined as, but not limited to, “names, terms, signs, symbols, logos and designs, or a combination of these, intended to identify goods, services or entities”.

It specifically looks at the brand contribution, which refers to the total economic benefit that a business derives from its brand, from volume and price premiums over generic products to cost savings over less branded competitors.

The group also looks at the proportion of brand value that banks derive from particular sub-sections of the industry.

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BusinessTech's Staff Writer is directly plugged into the South African Internet backbone, and spits out press releases and other news as they receive it. They are believed to be cl...
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  • Konstabel Koekemoer

    FNB will be dropping a llt more and should be in last place. The F obviously stands fir fraud since their customers are affected badly by this and tthey do nothing to help prevent it or assist customers in recovering the stilen money. We have been hit and aee changing banks and I would advise all FNB customers to do the same before you become a victim.

    • John Wilson

      You talking nonsense. FNB has very good anti fraud measures in place and the breaches mostly happen due to negligent or ignorant customers. Seems you are a perfect candidate for Capitec especially if I look at your spelling. Good riddance.

      • 4M

        Tell him John. These people are only here on blogs to complain. Nothing positive ever comes from their mouths

      • Carl Nel

        And what’s wrong with Capitec? Not being part of the “big 4” does not mean inferior!
        Why pay R90+ per month just for the sake of having an account at FNB when R5 gives the same functionality, better interest rate and better service?
        I did the move to Capitec 3 years ago after almost 30 years with FNB and Nedbank and what a pleasure to be rid of them!

  • bengine

    … competition to see which stool gets to float on top of the sewer ….

  • Frank Payne

    I always wondered how Nedbank claimed to be the best in their promotional blurb. I have been a client for well over 40 years and have seen their service deteriorate steadily over that time to be almost unrecognisable as the same institution. If it wasn’t such a hassle, I would have already moved. I see they are at the bottom of the big four list here. There seems to be a big disconnect between this ranking and where they believe themselves to be. In fact I’m surprised that they are as high as that.

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