Bank Pasargad Among Banker Mideast Top 10

The Banker’s Top 500 Banking Brands rankings for 2017 have been announced with five Iranian banks making it into the Top 500, mainly as a result of Brand Finance’s ability to include accurate revenues in its valuations on the country this year. 

Bank Pasargad is the only Iranian bank to make it into the Middle East top 10.

According to Banker, last year, Bank Pasargad undertook 12 brand development measures, including promoting its virtual banking services with free training for all customers, implementing groundbreaking applications such as Apple Watch banking apps and enhancing its presence on social media websites.

“In an industry in which consumers can freely choose from among an endless array of financial service providers and where brand loyalty is slowly vanishing, we recognized the need for a robust and solid brand to distinguish ourselves in a competitive environment,” said Mostafa Beheshti-Rouy, a board member and executive board member at Bank Pasargad, said.

The bank plans to invest in its branch network in 2017. 

According to Beheshti-Rouy, the bank will redesign its branches and develop a new futuristic approach. It also plans to invest in, participate in and interact with financial technology (fintech) accelerators to drive innovation.

In general, Middle Eastern banks have fared well in the 2017 rankings. The UAE banks occupy five out of the 10 spots in the regional ranking.

Qatar National Bank has also seen a significant uptick–56%–and remains number one in regional table. In June 2016, QNB completed its acquisition of Turkish bank Finansbank, which goes some way in explaining the sudden leap in its brand value.

“The increase in brand performance [in the Middle East] has come about as a result of more favorable economic conditions, international expansion and an increased need for branded products and services within these markets,” said Alex Corringham, consultant at Brand Finance, which compiles the rankings for The Banker.

“Over the past few years, many have replaced their older, more localized brand names and logos for those that resonate with consumers and can be recognized on an international level.”

Global Performance 

The premier Chinese brand, ICBC, has knocked Wells Fargo into second place to become the world’s most valuable banking brand in 2017.

For the first time in the history of The Banker’s Top 500 Banking Brands rankings, the aggregate valuation of leading brands has broken through the $1 trillion mark.

In spite of cloudy consumer trust and confidence issues stemming from the global financial crisis and a series of scandals predominantly affecting western banks, global brand value has grown by

8.7%, to $1074 billion.

In another first, China’s aggregate brand valuation surpassed the US to top the country table. In total, Chinese brands increased in value by 25% to $259.2 billion. Although this marks a deceleration in brand expansion, from a 42% year-on-year rise in the 2016 rankings, the rise was more than enough to propel China into the lead.

“Chinese banks, while already being very large brands, are continuing to grow both domestically and abroad, unlike more mature Western banks,” said Corringham. 

“While western banks’ margins have been squeezed owing to a prolonged period of low interest rates, Chinese banking brands have been able to generate significantly higher top and bottom lines, allowing for substantial year-on-year value growth.”

The aggregate value of US brands has increased by just 7%, which is 5% lower than the previous year. The UK remains in third place in the country table, in spite of a 16% brand value contraction. Canada’s brand value has risen by 26% to keep it in fourth place, while Japan has squeezed out France to regain fifth place.