Akbank on top in brand value
Posted by meb at February 26th, 2008
Akbank has been chosen Turkey’s most valuable financial brand, according to a survey by “Brand Finance,” the brand valuation consultancy firm, and The Banker magazine.
With a brand value of $631 million and a brand rating of “A,” Akbank, Turkey’s second-biggest company by market value, ranked 178 in the Global 500 Financial Brands Index survey.
İşbank, following Akbank with a market value of $577 million and brand rating of “B,” was the 188th institution in overall ranking. The bank is Turkey’s biggest lender.
Garanti, the third Turkish bank on the list, ranked 206 with a brand value of $469 million and brand rating of “A.” Garanti is co-owned by General Electric and is Turkey’s third-biggest publicly traded bank.
Turkey’s banks should not compete at the domestic level, said Muhterem İlgüner, Brand Finance director for Turkey. “They should raise the bar to the global level. Both their products and the services they offer should be evaluated on a global scale.”
As long as Turkey maintains its sustainable growth, it may climb to higher ranks in the upcoming years, said İlgüner. Despite the global credit crunch in 2007, some companies were able to make a leap, he said, adding that some banks and financial institutions that were formerly absent have entered the list.
The International Financial Reporting System (IFRS 3), with which Turkey is stipulated to comply in accounting, provides an opportunity in recording intangible assets such as brand, said İlgüner.
HSBC tops list:
HSBC was at the top of the list with a market value of $35.5 billion and market rating of “AAA,” while Citi ranked second with a brand value of $27.8 billion and brand rating of “AA.” HSBC became the most valuable brand both in retail and corporate banking. American Express became the world’s most valuable credit card with a brand value of $16.2 billion and brand grade of “AAA.”
Goldman Sachs ranked first in investment baking with a brand value of $12.5 billion.
The calculation of the value is based on the revenues a brand obtains, İlgüner said. The “Brand beta technique,” developed by Brand Finance, is used in calculating brand rating, he added. The revenue administrations of the United States, Britain and Australia approve the survey.
As of the 1990s, the banking sector entered the phase of mergers and acquisitions, said Brand Finance CEO David Haigh. “This survey provides an opportunity for the comparison of brands and the monitoring of the values produced in this activity area.” The global crisis experienced in 2007 had a negative impact on the banks’ capital costs, incomes and brand values, Haigh said.
Source:Turkish Daily News
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