South Africa’s banks have seen their brand value slip in 2014, according to new data out from Brand Finance and The Banker.<\/p>\n
Asset valuation consultancy,\u00a0Brand Finance, in association with The Banker, has released its 2014 Banking 500 list, which ranks the world’s top 500 banking brands according to their brand value.<\/p>\n
Brand value is determined through the “royalty relief” method, which determines the value a company would be willing to pay to license its brand as if it did not own it.<\/p>\n
“This approach involves estimating the future revenue attributable to a brand and calculating a royalty rate that would be charged for the use of the brand,” the group said.<\/p>\n
Standard Bank remains South Africa’s top banking brand, with a brand value of US$1.6 billion (R17.7 billion) – but has slipped from an overall 103rd position down to 114th.<\/p>\n
Standard Bank is currently engaged in a strategy to downscale its international presence.<\/p>\n
As part of its strategy the group is selling off 60% of its London operations to the Industrial and Commercial Bank of China (ICBC) in a US$765 million (R8.5 billion) deal, with further options for the Chinese giant to acquire a further 20%.<\/p>\n
ICBC acquired a 20% stake in Standard Bank Group in 2007, for US$5.5 billion (R60.9 billion).<\/p>\n
The rank-slip trend was experienced across all but two of South Africa’s financial institutions, with the only exceptions being Rand Merchant Bank (RMB)\u00a0and Investec.<\/p>\n
RMB – South Africa’s lowest-ranked bank – saw its brand value increase from US$203 million (R2.2 billion) to US$219 million (R2.4 billion).<\/p>\n
Investec climbed to a brand value of US$908 million (R10 billion) from US$682 million (R7.5 billion) before.<\/p>\n
WesBank, a\u00a0provider of vehicle finance and car insurance solutions,\u00a0increased its brand value by US$28 million to US$391 million (R4.3 billion), but still slipped in ranking.<\/p>\n
| 2014 rank \n<\/strong><\/td>\n 2013 rank | \n<\/strong><\/td>\n Bank<\/strong><\/td>\n | 2013 Brand Value | \n<\/strong><\/td>\n 2014 Brand Value | \n<\/strong><\/td>\n<\/tr>\n 114<\/span><\/td>\n | 103<\/td>\n | Standard Bank<\/td>\n | 1.705<\/td>\n | 1.595<\/td>\n<\/tr>\n | 132<\/span><\/td>\n | 115<\/td>\n | Absa<\/td>\n | 1.491<\/td>\n | 1.233<\/td>\n<\/tr>\n | 136<\/span><\/td>\n | 119<\/td>\n | Nedbank<\/td>\n | 1.312<\/td>\n | 1.196<\/td>\n<\/tr>\n | 146<\/span><\/td>\n | 133<\/td>\n | First National Bank<\/td>\n | 1.139<\/td>\n | 1.056<\/td>\n<\/tr>\n | 155<\/span><\/td>\n | 185<\/td>\n | Investec<\/td>\n | 0.682<\/td>\n | 0.908<\/td>\n<\/tr>\n | 281<\/span><\/td>\n | 269<\/td>\n | WesBank<\/td>\n | 0.363<\/td>\n | 0.391<\/td>\n<\/tr>\n | 390<\/span><\/td>\n | 410<\/td>\n | RMB<\/td>\n | 0.203<\/td>\n | 0.219<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n | World’s best bank brands<\/h3>\nUnsurprisingly, the world’s biggest bank by market capitalisation, Wells Fargo, is also the world’s most valuable banking brand according to Brand Finance.<\/p>\n Wells Fargo claimed the top spot as the world’s biggest in mid-2013 – a position it has retained since – moving past the Industrial and Commercial Bank of China (ICBC) who dominated before.<\/p>\n According to Brand Finance, the world’s number one bank brand has a value over US$30.2 billion – up from 2013’s valuation of US$26 billion.<\/p>\n The top 5 most valuable bank brands feature the United States’s “big four”, with Wells Fargo followed by Bank of America (third, at US$26.6 billion), Citi Bank (fourth, at US$24.5 billion) and Chase (fifth, at US$23.1 billion).<\/p>\n Chase, of JPMorgan Chase, dropped from 2013’s number 2, to 2014’s number 5, replaced by the UK’s HSBC, which climbed to a brand value of US$26.8 billion.<\/p>\n Top 10 world bank brand values (in US$ billions)<\/h3>\n
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