Standard Bank Group has for the second year in a row been independently ranked the most valuable banking brand in Africa, according to the 2012 global Top 500 Banking Brands report.
The definitive report is published in the leading global banking journal The Banker and is compiled by the valuation consultancy and asset management company Brand Finance.
According to the report, the Standard Bank brand is worth US$2.17-billion. This saw Africa's biggest banking group jump up three places in the world rankings, from position 76 in 2011 to position 73 in the world. It also means that Standard Bank Group maintains its top spot as the highest ranked brand on the continent.
BrandFinance 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 (DCF) technique to discount estimated future royalties at an appropriate discount rate to arrive at a net present value (NPV) of the trademark and associated intellectual property: the brand value.
Standard Bank Group Deputy CEO Ben Kruger says: "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 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."
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. Mr Kruger says this latest recognition bears testimony to this competitive advantage.
"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," says Mr Kruger.
"The benefit of our strong commitment to Africa is increasingly evident and injects extra value into our relationship with customers. 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. It is 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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