South Africa’s FNB and Capitec, both JSE listed, roared into the top 10 of the world’s strongest brands, according to Brand Finance’s Banking 2024 report released on Wednesday.
Brand Finance, the world’s leading brand valuation consultancy, on Wednesday released its Banking 2024 ranking, which includes the world’s top 500 most valuable and strongest banking brands.
Brand Finance’s research indicated that local and regional banks were performing as well as – and, in many cases, outperforming – global banks in terms of positioning their brand in the hearts and minds of customers.
Indonesia’s BCA was the world’s strongest banking brand with a Brand Strength Index score of 93.8/100 and elite AAA+ rating. Three African brands, Equity Bank ,92.46, South Africa’s FNB, 92.29, and Kenya Commercial Bank ,91.47, all ranked among the top five strongest banks, while South Africa’s Capitec was ranked seventh at 89.08.
Jeremy Sampson, the chairperson of Brand Finance Africa, said: “These rankings are based on global best practice, are ISO compliant and show the strength of local African brands from South Africa and Kenya. FNB and Capitec continue to dominate from a South African perspective and are to be heartily congratulated. Nigerian banks have suffered as a result of the slippage in the value of the naira against other currencies. Access Bank had the added sad loss of their highly respected CEO in a plane crash in the US.”
FNB offers the brand promise of “How Can We Help You?”
"We are committed to being your trusted partner in your life journey,“ it says on social media platform X.
On X, Capitec says: “Join the bank that believes banking should be simple.”
Most valuable banks globally
The report said the combined value of the world’s top 500 most valuable banking brands had reached a record level of $1.44 trillion (R27 trillion), almost double what it was a decade ago.
The report found that the Chinese banking sector demonstrated a notable recovery, with the “big four” banks remaining well ahead of their US counterparts. ICBC (Industrial and Commercial Bank of China) maintained its position as the world’s most valuable banking brand for the eighth consecutive year, boasting a 3% rise in brand value to $71.8 billion. China Construction Bank, Agricultural Bank of China, and Bank of China secure second, third, and fourth positions respectively, following single-digit percentage increases in each of their brand values.
Despite experiencing a minor decline (4%) in brand value, Bank of America retained the title as the leading US banking brand for the fourth consecutive year, and is ranked fifth position overall, boasting a value of $37.3bn. Meanwhile, Wells Fargo, positioned sixth overall, was narrowing the margin with its American competitor, marking a 9% increase to achieve a brand value of $35.8bn.
David Haigh, the chairperson and CEO of Brand Finance, said: “As the world’s top banking brands reach new heights, China’s mega-banks continue to dominate at the top of the brand value ranking. Another key insight from our 2024 data is that local banks increasingly outshine their larger counterparts in brand strength. Dominant brands thrive in singular markets with limited competition, while banks expanding into multiple markets may successfully augment their brand value but risk diluting brand strength.”
Only 11 of the top 50 countries experienced decreases in aggregate value, led by Russia (69%), Malaysia (20%), and Nigeria (14%). Unsurprisingly due the international sanctions imposed on Russia, the country’s two largest bank brands – VTB and SBER – have suffered the biggest falls in brand value by percentage, with 91% and 63% plunges, respectively.
BUSINESS REPORT