United Bank for Africa Plc and Zenith Bank Plc are among the four Nigerian banks listed among the global top 500 bank brands.
According to the
rankings, First Bank of Nigeria Ltd retained its number one banking
brand ranking in Nigeria for the fifth consecutive year in the 2016 The
Banker and Brand Finance Top 500 Banking Brands in the world.
According to the
2016 Top 500 banking brands ranking published in the February edition of
The Banker magazine, Financial Times Group, in conjunction with Brand
Finance, London, United Kingdom, First Bank moved up the scale by 16
places, from 336 position in 2015 to 320 this year.
The country
representative of The Banker magazine in Nigeria, Mr Kunle Ogedengbe,
said in a statement yesterday that that three other Nigerian banks also
made the ranking.
They are Guaranty
Trust Bank (GTB) which moved to 389 in the world, from 417 in 2015;
Zenith Bank that dropped from 388 in 2015 to 392 in 2016, and United
Bank for Africa (UBA) that returned to the ranking in 447. Access Bank
that made the ranking at 496 in 2015 dropped from the 2016 ranking.
First Bank's brand
value, which is the licensing rate that a third-party would need to pay
to use the bank's brand, increased to $322 million in 2016 from $300
million in 2015 while that of GTB also increased to $243 million from
$213 million.
The 2016 brand
value of Zenith Bank increased to $238 million from $235 in 2015 while
UBA, which made a return to the ranking since 2012, has a brand value of
$198 million. UBA's brand value in 2012 was $121 million.
For the ranking's
methodology, Brand Finance obtained brand-specific financial and revenue
data; modelled the market to identify market demand and the position of
individual banks in the context of all other market competitors;
established the royalty rate for each bank; calculated the discount rate
specific to each bank, taking account of its size, geographical
presence, reputation, gearing and brand rating, and discounted future
royalty stream (explicit forecast and perpetuity periods) to a net
present value - which is the brand value.
This approach is
used for two reasons: it is favoured by tax authorities and by the
courts because it calculates brand values by reference to documented
third-party transactions which can be arrived at through publicly
available financial information.
Of the five
countries in Africa that made the ranking, Nigeria has the highest brand
value increase of $249 million. Egypt moved up by $239 million; Togo
gained $134 million while South Africa and Morocco lost $878 million and
$213 million respectively.
Globally, Wells
Fargo of the United States of America (USA) retains the number one
banking brand in the world for the fourth consecutive year.
It was followed by
banks in China and United Kingdom in the first ten. Wells Fargo's brand
value for 2016 is $44.1 billion from $34.9 billion in 2015.
The remainder of
the top ten banks in the world are ICBC (China), China Construction
Bank, Agricultural Bank of China, Chase (USA), Bank of China, Bank of
America, Citi (USA), HSBC (UK), and Barclays (UK).
The Banker, in its
90th year, is an un-rivalled coverage of global finance and banking
publication from the group of Financial Times Newspaper which is
regarded as the most influential newspaper in the world. It is the
definitive publication that provides guide to bank ratings and analysis
globally and the definitive reference on international banking for
finance experts, governments, chief finance officers, CEOs, central bank
governors, finance ministers, and other decision makers globally.
The Banker's Top
500 Banking Brands ranking, in conjunction with Brand Finance, measures
the value of financial services firms across the world, analysing
specific sectors and geographies, and identifying the brands that have
improved the most, as well as those that have suffered the greatest
setbacks.
New electricity tariff regime begins today
FCT residents, environs now pay N23.6 per hour from N14
Electricity
consumers in the country will from today begin to pay increased tariff
as announced by the Nigerian Electricity Regulatory Commission (NERC)
under the Multi-Year Tariff Order (MYTO) 2015.
NERC, which set the
take-off of the new regime for February 1, 2016, noted however that
there are inbuilt consumer protection mechanisms and incentives for
improved service delivery by the Discos and fair return on investment in
the new tariff order.
Under the new
tariff, residential customer category (R2) in the Federal Capital
Territory (FCT), Niger, Nasarawa and Kogi states, which fall under the
Abuja Electricity Distribution Company (AEDC) franchise, who previously
paid N14 per kilowatt/hour, will now pay N23.60 per kilowatt/ hour.
In a similar vein,
residential customers in Eko and Ikeja electricity distribution areas
will be getting N10 and N8 increase respectively in their energy
charges. The same situation applies to residential customers in Kaduna
and Benin electricity distribution companies who will see an increase of
N11.05 and N9.26 respectively in their energy charges.
Meanwhile, the
minister of power, works and housing, Babatunde Fashola, has explained
that the new MYTO due to commence today is aimed at correcting the whole
system in the entire value chain of the power sector, and said it was
the most viable means of achieving steady power supply in the country.
Fashola, who spoke
in an interview with journalists at the site of the 2 X 60 MVA 132/33 KV
Sub-station Kukwaba power project during his nationwide inspection,
verification and fact-finding tour of projects under his ministry, said
the ready acceptance of the new tariff order would also galvanise the
sector and boost investments, which would in turn usher in more
development in the country.
Consequent upon the
increase, the NERC has abolished the controversial monthly fixed charge
payment and also reiterated its directive to the distribution companies
(Discos) to abide by its order not to connect new customers without
first providing them with meters, in order to ensure customers pay only
for what they consume.
According to the
acting head of the Commission, Dr. Anthony Akah, the removal of fixed
charge under the new tariff regime "was in response to electricity
consumers' complaints and a measure to ensure electricity distribution
companies improve on service delivery as their income is dependent on
the quantity of electricity used by their customers.
"The Commission, in
implementing this cost reflective tariff, will effectively monitor and
enforce all service delivery agreements in the new tariff order.
The new tariff
order, aside from eliminating fixed charge, has a robust mechanism to
ensure that electricity distribution companies fully meter their
consumers and eliminate 'crazy' billing within one year," Akah
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