-
Chinese brands hold top 4 spots in new ranking
-
Africans brands report high scores
-
But Nigeria’s top brands absent
Ben Eguzozie
The combined value of the world’s top 500 most valuable banking brands has reached a record level of $1.44 trillion, almost double what it was a decade ago, according to a new report from Brand Finance, the world’s leading brand valuation consultancy.
Chinese banking brands recover in value, holding on to top four most valuable banking brands spots and increasing in brand value.
Brand value is understood as the net economic benefit that a brand owner would achieve by licensing the brand in the open market. Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors.
Local banking brands prove stronger than global brands: Indonesia’s BCA is ranked the world’s strongest banking brand and regional African players report high scores for brand strength.
The Chinese banking sector demonstrates a notable recovery, with the ‘big four’ banks remaining well ahead of their US counterparts. ICBC (Industrial and Commercial Bank of China) maintains its position as the world’s most valuable banking brand for the eighth consecutive year, boasting a three percent rise in brand value to $71.8 billion. China Construction Bank, Agricultural Bank of China, and Bank of China secure second, third, and fourth positions respectively, following single-digit percentage increases in each of their brand values.
Despite experiencing a minor decline (4%) in brand value, Bank of America retains the title as the leading US banking brand for the fourth consecutive year, and is ranked fifth position overall, boasting a value of $37.3 billion.
Meanwhile, Wells Fargo, positioned sixth overall, is narrowing the margin with its American competitor, marking a nine percent increase to achieve a brand value of $35.8 billion.
According to David Haigh, chairman and chief executive officer of Brand Finance: “As the world’s top banking brands reach new heights, China’s mega-banks continue to dominate at the top of the brand value ranking. Another key insight from our 2024 data is that local banks increasingly outshine their larger counterparts in brand strength. Dominant brands thrive in singular markets with limited competition, while banks expanding into multiple markets may successfully augment their brand value but risk diluting brand strength”.
However, brand values of Russian banks continue to plummet, perhaps due to the European country’s war of aggression against its neighbour, Ukraine.
Brand Finance’s research indicates that local and regional banks are performing as well as – and, in many cases, outperforming – global banks in terms of positioning their brand in the hearts and minds of customers. Indonesia’s BCA is the world’s strongest banking brand with a brand strength index (BSI) score of 93.8/100 and elite AAA+ rating.
Three African brands, Equity Bank, First National Bank, and Kenya Commercial Bank, as well as Romanian Banca Transilvania all rank amongst top 5 strongest brands globally, earning AAA+ ratings.
However, Nigeria’s top brands like Dangote Industries Limited, which emerged Nigeria’s most valuable brand in 2023, was not ranked among the African top brands.
Only 11 of the top 50 countries experienced decreases in aggregate value, led by Russia (69%), Malaysia (20%), and Nigeria (14%). Unsurprisingly due to the international sanctions imposed on Russia, the country’s two largest bank brands – VTB and SBER – have suffered the biggest falls in brand value by percentage, with 91 percent and 63 percent plunges, respectively.
Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the biggest brands to the test, and publishes over 100 reports, ranking brands across all sectors and countries. The world’s top 500 most valuable and strongest Banking brands are included in the Brand Finance Banking 2024 ranking.
Brand Finance, headquartered in London with offices in 20 countries, is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance for more than 25 years, the outfit evaluates the strength of brands and quantifies their financial value to help organisations of all kinds make strategic decisions.
