According to the report, which is published in global banking journal, The Banker, Standard Bank's brand is worth US$2.17billion. This saw the 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 maintains its top spot as the highest ranked brand on the continent.
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 (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 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.
BrandFinance'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.
Download the Best Global BankingBrands 2012 report (Size: 6.85MB).
