2 February 2012
South Africa’s Standard Bank Group is ranked the most valuable banking brand in Africa in the 2012 global Top 500 Banking Brands report – the second year in a row it has received the accolade.
The definitive report is published in the leading global banking journal The Banker and compiled by valuation consultancy and asset management company Brand Finance.
“We are delighted to receive this recognition, which adds to a growing list of prestigious awards in recognition of building a successful brand on the African continent,” Standard Bank Group deputy CEO Ben Kruger said in a statement this week.
“Standard Bank acknowledges the relationship between brand equity and the key value drivers in the business, and we view brand management as a key element to enhance value for all stakeholders.”
Jump in brand value
According to the report, the Standard Bank brand alone is worth US$2.17-billion, helping the bank to maintain its position as the highest ranked banking brand on the continent, as well as a jump up in world rankings by three places from 76th in 2011 to 73rd.
Brand Finance calculates the value of brands by using a “royalty relief method” that estimates the notional price a company would have to pay for the brand.
The methodology employed uses a discounted cash flow technique to discount estimated future royalties at an appropriate discount rate to arrive at a net present value of the trademark and associated intellectual property: the brand value.
“This ranking is a reflection of the value created through the focus and dedication of our people in delivering what is important to our customers in different segments and markets, as we strongly believe that is what ultimately differentiates banks and builds value in a brand,” said Kruger.
Strong commitment to Africa
As a South African headquartered bank with subsidiaries in 17 African countries, Standard Bank Group is uniquely positioned to service clients doing business on the continent.
“The benefit of our strong commitment to Africa is increasingly evident and injects extra value into our relationship with customers,” said Kruger. “This enhances brand value, a measure of commitment and loyalty to Standard Bank.
“Whatever we do should help the customer advance in some way. Merely completing a routine activity or facilitating a complex transaction is only really worth something if we are assisting our customers and clients in their needs and delivering on their expectations.”
Brand Finance’s Top Banking 500 directly compares the values of the world’s banking brands, making it the only direct comparison of brand value in the banking industry.
The consultancy produces a study that illustrates how the methodology, findings and value-based marketing techniques can be used for decision-making and to determine the impact of brand equity on business performance.
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