Economy
Nigeria banks have a long way to build global brand —–Banker
The Banker Magazine yesterday released its top 500 global banking brands for 2014 with Nigeria banks ranking very low despite rising profits and assets. The report said that Nigeria banks still have a long way to go to build their brands
According to the report “African banks made little headway. South Africa’s saw their total brand valuation dip by 4 per cent to $5.7billion, while Nigeria’s, despite experiencing a big rise in profits and assets in the past few years, only managed to increase their brand values by 3 per cent to $593million, suggesting they still have a long way to go in terms of building their brands.
. The brands which ranked banks according to how they mange to enhance shareholders value ranked United States and European banks high for appreciating in shareholders value.
According to the Banker “Brand valuations for US and European banks once again rose sharply. For emerging market lenders, the ranking looks less encouraging. Brand values in this year’s Top 500 Banking Brands ranking have increased 14 per cent from 2013, reflecting the continuing recovery of global banks from the financial crisis. Among the top 10 banks, eight saw their brand values rise by 9 per cent or more.
“Wells Fargo had another strong showing, topping the ranking for the second year in succession. Its brand value went from $26bn in 2013 to $30bn in 2014. HSBC moved up from third to second. Bank of America and Citi also jumped one place from last year to third and fourth, respectively. The bank brand to lose out to HSBC, Bank of America and Citi was Chase, which slipped from second to fifth spot, a result of its brand value declining 1 per cent to $23.2bn.
“Overall, developed world lenders had a good year. European institutions fared particularly well, reflecting the fact that their earnings projections and the perception of their riskiness – both important elements of their brand valuation – have improved as the eurozone crisis has abated and with many of them having increased their capital levels and cleansed their balance sheets of bad assets.
“The brand values very much mirror banks’ share prices and market capitalisations,” says Bryn Anderson, chief operating officer of Brand Finance, the consultancy that did the research for the ranking. Peripheral eurozone countries such as Ireland, Portugal and Greece stood out for positive reasons. The aggregate brand valuation of Greek banks rose a huge 101% between 2013 and 2014 to $2.1bn. Irish and Portuguese lenders increased by 68 per cent and 42 per cent, respectively. Cyprus, however, is yet to put its financial problems behind it. Its banks saw their collective valuation fall 3 per cent to $231m.
US banks managed to increase their valuations from $174bn to $194bn, ensuring that once again the country remained way ahead of any other in the ranking China, in second place, has a total brand value of $113billion. UK banks saw their valuations increase 18 per cent to $76billion, while German lenders enjoyed a 14 per cent rise to $32bn”.
Emerging market woes
The Banker’s report said “Emerging markets suffered badly in this year’s ranking, underscoring the deepening concerns about the outlook for their economies. Russia’s Sberbank, which has the highest brand valuation of any non-Chinese emerging market lender, saw its valuation fall 23 per cent to $11billion. Brazil’s Bradesco and Itaú saw their valuations decline by 22 per cent and 20 per cent, respectively. Indian firms also had a glum year. The valuation of State Bank of India, the country’s biggest lender by assets and Tier 1 capital, slumped 32 per cent from $6bn to $4bn.
“One developing country that bucked the worsening trend was China. Of the BRICS – Brazil, Russia, India, China and South Africa – it was the only one to see the brand value of its banks climb. Moreover, the aggregate value of its lenders went up by a substantial amount, from $94bn to $113bn, an increase of 20%. This is likely a result of China’s economy still growing rapidly. “China seems to go from strength to strength,” says Mr Anderson.
China did not outpace every other country. One that performed even more strongly was Japan, which saw its banks’ valuation rise 60% to $59bn. This was in part due to the fact that their valuations went down heavily in the 2013 ranking amid the economic problems caused by the Fukushima nuclear accident. Bank of Tokyo-Mitsubishi UFJ’s valuation increased 51% to $17.6bn this year, while Sumitomo Mitsui Financial Group’s rose 43% to $7.8bn.
Competition heats up
“The figures from the ranking show that smaller banks are making faster progress than their larger counterparts. In 2014, the top 100 banks accounted for 78 per cent of the brand valuation of the top 500. That figure fell from 81% last year. Similarly, the top 50 banks make up 63 per cent of this year’s top 500 valuation, down from 65 per cent in 2013.
“What can be expected to happen over the next year? Mr Anderson believes that banks increasingly recognise the need to enhance the value of their brands. “Over the past year, banks have really been focusing on the customer,” he says. “They are beginning to understand that their brand is a valuable asset that needs to be managed. With the focus on customer satisfaction and competitiveness of the products they are offering, I think we will see brand strengths grow.”
The Arab Africa Trade Bridges (AATB) Program and the Federal Republic of Nigeria formalized a partnership with the signing of the AATB Membership Agreement, officially welcoming Nigeria as the Program’s newest member country. The signing ceremony took place in Abuja on the sidelines of the 5th AATB Board of Governors Meeting, hosted by the Federal Government of Nigeria.
The Membership Agreement was signed by Eng. Adeeb Y. Al Aama, the CEO of the International Islamic Trade Finance Corporation (ITFC) and AATB Program Secretary General, and H.E. Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, Federal Republic of Nigeria. The Agreement will provide a strategic and operational framework to support Nigeria’s efforts in trade competitiveness, promote export diversification, strengthen priority value chains, and advance capacity-building efforts in line with national development priorities. Areas of collaboration will include trade promotion, agribusiness modernization, SME development, businessmen missions, trade facilitation, logistics efficiency, and digital trade readiness.
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, called for deeper trade collaboration between African and Arab nations, stressing the importance of value-added Agribusiness and industrial partnerships for regional growth. Speaking in Abuja at the Agribusiness Matchmaking Forum ahead of the AATB Board of Governors Meeting, the Minister said the shifting global economy makes it essential for African and Arab nations to rely more on regional cooperation, investment and shared markets.
He highlighted projections showing Arab-Africa trade could grow by more than US$37 billion in the next three years and urged partners to prioritize value addition rather than raw commodity exports. He noted that Nigeria’s growing industrial base and upcoming National Single Window reforms will support efficiency, investment and private-sector expansion.
“This is a moment to turn opportunity into action”, he said. “By working together, we can build stronger value chains, create jobs and support prosperity across our regions”, Edun emphasized. “As African and Arab nations embark on this journey of deeper trade collaboration, the potential for growth and development is vast. With a shared vision and commitment to value-added partnerships, we can unlock new opportunities, drive economic growth, and create a brighter future for our people.”
Speaking during the event, Eng. Adeeb Y. Al Aama, Chief Executive Officer of ITFC and Secretary General of the AATB Program, stated: “We are pleased to welcome Nigeria to be part of the AATB Program. Nigeria stands as one of Africa’s most dynamic and resilient economies in Africa, with a rapidly expanding private sector and strong potential across agribusiness, energy, manufacturing, and digital industries. Through this Membership Agreement, we look forward to collaborating closely with Nigerian institutions to strengthen value chains, expand regional market access, enhance trade finance and investment opportunities, and support the country’s development priorities.”
The signing of this Agreement underscores AATB’s continued engagement with African countries and its evolving portfolio of programs supporting trade and investment. In recent years, AATB has worked on initiatives across agribusiness, textiles, logistics, digital trade, export readiness under the AfCFTA framework, and other regional initiatives such as the Common African Agro-Parks (CAAPs) Programme.
With Nigeria’s accession, the AATB Program extends it’s presence in the region and adds a key partner working toward advancing trade-led development and fostering inclusive economic growth.
Federal Executive Council (FEC) has approved the 2026–2028 Medium-Term Expenditure Framework (MTEF), a key fiscal document that outlines Nigeria’s revenue expectations, macroeconomic assumptions, and spending priorities for the next three years. The approval followed Wednesday’s FEC meeting presided over by President Bola Tinubu at the State House, Abuja. The Minister of Budget and Economic Planning, Senator Atiku Bagudu made this known after the meeting.
The Minister said the Federal Government is projecting a total revenue inflow of N34.33 trillion in 2026, including N4.98 trillion expected from government-owned enterprises. Bagudu said that the projected revenue is N6.55 trillion lower than earlier estimates, adding that federal allocations are expected to drop by about N9.4 trillion, representing a 16% decline compared to the 2025 budget.
He said that statutory transfers are expected to amount to about N3 trillion within the same fiscal year. On macroeconomic assumptions, FEC adopted an oil production benchmark of 2.6 million barrels per day (mbpd) for 2026, although a more conservative 1.8 mbpd will be used for budgeting purposes. An oil price benchmark of $64 per barrel and an exchange rate of N1,512 per dollar were also approved.
Bagudu said the exchange rate assumption reflects projections tied to economic and political developments ahead of the 2027 general elections. He said the exchange rate assumption took into account the fiscal outlook ahead of the 2027 general elections.
The minister said that all the parameters were based on macroeconomic analysis by the Budget Office and other relevant agencies. Bagudu said FEC also reviewed comments from cabinet members before approving the Medium-Term Fiscal Expenditure Ceiling (MFTEC), which sets expenditure limits. Earlier, the Senate approved the external borrowing plan of $21.5 billion presented by President Tinubu for consideration The loans, according to the Senate, were part of the MTEF and Fiscal Strategy Paper (FSP) for the 2025 budget.
The spot rate on Nigerian Treasury bills has been increased by 146 basis points by the Central Bank of Nigeria (CBN) following tight subscription levels at the main auction on Wednesday. The spot rate on Treasury bills with one-year maturity has now surpassed Nigeria’s 16.05% inflation by 145 basis points following a recent decision to keep the policy rate at 27%.
The Apex Bank came to the primary market with N700 billion Treasury bills offer size across standard tenors, including 91-day, 182-day and 364 day maturities. Details from the auction results showed that demand settled slightly above the total offers as investors began to seek higher returns on naira assets despite disinflation.
Total subscription came in at about N775 billion versus N700 billion offers floated at the main auction. The results showed rising appetite for duration as investors parked about 90% of their bids on Nigerian Treasury bills with 364 days maturity. The CBN opened N100 billion worth of 91 days bills for subscription, but the offer received underwhelming bids totalling N44.17 billion.
The CBN allotted N42.80 billion for the short-term instrument at the spot rate of 15.30%, the same as the previous auction. Total demand for 182 days Nigerian Treasury bills settled at N33.38 billion as against N150 billion that the authority pushed out for subscription. The CBN raised N30.36 billion from 182 days bills allotted to investors at the spot rate of 15.50%, the same as the previous auction.
Investors staked N697.29 billion on N450 billion in 364-day Treasury bills that was offered for subscription. The CBN raised N636.46 billion from the longest tenor at the spot rate of 17.50%, up from 16.04% at the previous auction.
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