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Tuesday 28, February 2017 by Matthew Amlôt

The value of a good name...

Independent branded business valuation and strategy consultancy Brand Finance has released its latest annual report on the world’s most valuable banking brands, Banking 500 2017.

Brand Finance calculated the values of brands through a royalty relief approach that estimates likely future sales attributable to a brand and calculating a potential royalty rate that would be charged for the use of the brand if it were not already owned.

Why is a strong brand so important? According to David Haigh, CEO of Brand Finance, in his foreword to the report, “Brand Finance’s recently conducted share price study revealed the compelling link between strong brands and stock market performance. It was found that investing in the most highly branded companies would lead to a return almost double that of the average for the S&P 500 as a whole. Acknowledging and managing a company’s intangible assets taps into the hidden value that lies within it…”

The report notes that this year’s analysis sees a major milestone with, for the first time ever, a non-western brand topping the table. Brand Finance names Chinese bank ICBC as the world’s most valuable banking brand and notes that total Chinese banking brand value now outstrips that of the US.

UAE-based, Shari’ah-compliant institution Dubai Islamic Bank makes headlines too, showing the fourth largest increase in brand value 2016-2017 across the whole table, behind three Chinese banks. In fact, this year also marks the first time that Brand Finance has provided a ranking of Islamic banking by service brand value although the consultancy does say, “Though the most valuable contributions of Islamic banking are dwarfed by those from other areas, the industry is rapidly growing and will make an ever-increasing contribution to banks from the Middle East and the rest of the world too.

“Dubai Islamic Bank currently has the largest brand value contribution from Islamic banking: $580 million of its $1.9 billion total brand value. This has helped the bank to register the fastest growth rate in the Middle East and one almost unmatched globally of 136 per cent year-on-year.”

Elsewhere among banks in the Middle East, Qatar National Bank (QNB) remains the region’s most valuable banking brand overall, showing growth in value of 56 per cent, matched by second-placed Emirates NBD. National Bank of Abu Dhabi (3rd) and Abu Dhabi Commercial Bank (4th) rose 62 per cent and 77 per cent respectively.

The full Banking 500 2017 may be viewed at http://brandfinance.com/.

Africa

Brand Value 2017 ($m)



Standard Bank

1,512

ABSA

1,335

First National Bank

1,160

Investec

1,004

Nedbank

934

CIB

449

Capitec Bank

367

National Bank of Egypt

349

Attijariwafa Bank

323

First Bank of Nigeria

301



Source: Brand Finance


 

Middle East

Brand Value 2017 ($m)



QNB

3,826

Emirates NBD

3,406

National Bank of Abu Dhabi

2,497

Abu Dhabi Commercial Bank

2,186

Al-Rajhi Bank

2,133

NCB

1,972

Dubai Islamic Bank

1,882

First Gulf Bank

1,861

NBK

1,592

Bank Pasargad

978



Source: Brand Finance


 

Islamic Banking

Brand Value 2017 ($m)



Dubai Islamic Bank

580

Emirates NBD

502

Abu Dhabi Islamic Bank

435

Bank Melli Iran

252

Abu Dhabi Commercial

195

NBK

185

Qatar Islamic Bank

161

Sharjah Islamic

57

Union National Bank

45

Mashreq

31



Source: Brand Finance


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