South Africa’s best and worst bank brands

A new report identifies which of the big five banks in South Africa commands the most valuable brand.

Brand South Africa and Brand Finance Africa published its third annual study of the Top 50 corporate brands in the country, which are valued at approximately R1.5 trillion.

It found Standard Bank to have the most valuable brand, ahead of FNB, Nedbank and Absa, who all featured in the top 10 brands overall.

And while Capitec was seen to have the least valuable brand out of the five, featuring in 30th place overall, its value over the past 12 months has surged.

“Few brands in the history of the Brand finance Top 50 Brands have achieved a 63% rise in Brand Value over the course of 12 months,” the report said.

The report noted that in 2015, the bank’s 2.8 million full banking clients represent 18.3% of the 15.3 million employed South Africans and its earnings stood at R2.563 billion.

FNB saw a 31% swing in its brand value from 2014, while Nedbank endured a 2% slide in brand value from 2014.

Most valuable banking brands in South Africa

# Brand Enterprise Value (ZAR m) Brand Value (ZAR m) BV/EV
1 Standard Bank 112 949 17 506 15%
2 FNB 152 756 14 496 9%
3 Nedbank 103 020 12 235 12%
4 Absa 69 037 10 857 16%
5 Capitec 61 213 3 845 63%

Brand Finance calculates brand value using the Royalty Relief approach. This approach involves estimating the likely future sales that are attributable to a brand and calculating a royalty rate that would be charged for the use of the brand.

Top 10 most valuable brands in South Africa

# Brand Enterprise Value (ZAR m) Brand Value (ZAR m) BV/EV
1 MTN 382 718 54 027 14%
2 Vodacom 227 042 20 029 9%
3 Sasol 291 057 18 232 6%
4 Standard Bank 112 949 17 506 15%
5 FNB 152 756 14 496 9%
6 Woolworths 62 721 14 396 23%
7 Nedbank 103 020 12 235 12%
8 Absa 69 037 10 857 16%
9 Investec 87 688 10 155 12%
10 Mediclinic 128 728 10 072 8%

The full report can be found here.

More on banking in SA

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South Africa’s best and worst banks list

Best and worst banks in SA

 

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South Africa’s best and worst bank brands