Four African banks, namely Equity Bank, First National Bank (FNB), Kenya Commercial Bank (KCB), and Capitec, have achieved positions among the top five strongest banks globally, according to the latest Brand Finance most valuable brand list. Additionally, Capitec secured the seventh spot on this prestigious list.
The report from Brand Finance, a leading brand valuation consultancy, reveals that the combined value of the world’s top 500 most valuable banking brands has reached a record level of $1.44 trillion. This marks nearly double the value from a decade ago.
In the global ranking, China’s banking sector stands out, with the big four banks leading ahead of their US counterparts. Industrial and Commercial Bank of China (ICBC) maintains its position as the world’s most valuable banking brand for the eighth consecutive year, witnessing a 3% rise in brand value to reach $71.8 billion.
The other three Chinese banks, China Construction Bank, Agricultural Bank of China, and Bank of China, secured the second, third, and fourth positions, each experiencing single-digit percentage increases in their brand values.
Despite a minor decline (4%) in brand value, Bank of America retains its position as the leading US banking brand for the fourth consecutive year, ranking fifth overall with a value of $37.3 billion. Wells Fargo, positioned sixth overall, is narrowing the gap with a 9% increase, reaching a brand value of $35.8 billion.
David Haigh, Chairman & CEO of Brand Finance, commented on the dominance of China’s mega-banks and highlighted the increasing strength of local banks compared to their larger global counterparts. The research indicates that local and regional banks are not only performing as well as global banks but, in many cases, are outperforming them in terms of brand positioning.
Jeremy Sampson, Chairman of Brand Finance Africa, praised the performance of South African banks, particularly FNB and Capitec, in the global rankings. He also noted challenges faced by Nigerian banks due to the devaluation of the Naira against other currencies.
The report revealed that only 11 of the top 50 countries experienced decreases in aggregate brand value, with Russia, Malaysia, and Nigeria leading the declines. Russia’s two largest bank brands, VTB and SBER, suffered the most significant falls in brand value, with declines of 91% and 63%, respectively, due to international sanctions imposed on Russia.
