MUSCAT, 28 April 2012 – BankMuscat, the flagship financial institution in the Sultanate, has moved up again to reinforce its ranking at 300 among the top 500 global banking brands compared to 331 in 2011. The 2012 Brand Finance Banking®500 report, published in association with The Banker magazine, retained the Bank's brand rating at 'AA', while the brand value accounted for almost 9 per cent of its market capitalisation.
The notional brand value is the extra money a company can make from its products and services due to its brand status. The brand value reflects the premium a customer is willing to pay for products and services or the net present value of the estimated future cash flows attributable to the brand.
Elated on the global brand recognition, AbdulRazak Ali Issa, Chief Executive, said: “BankMuscat is delighted to record sustained growth in global brand ranking. The Brand Finance Banking®500 report is a benchmarking study of the strength, risk and future potential of the global banking brands as well as a summary measure of their financial strength. BankMuscat understands the relationship between brand equity and key value drivers in the business model and views brand management as a key element to enhance value for all stakeholders."
AbdulRazak added: “As a forward looking financial institution, the Bank strives to establish its leadership role in all realms of activities. The Bank recognises that building strong brand equity is an important recipe for success. We recognise the need to understand brand equity and brand value when making strategic decisions. The brand valuation helps in planning a framework for long-term strategic marketing investment."
BankMuscat is the recipient of a number of prestigious brand leadership awards in recognition of building a successful global brand. In 2009, The World Brand Congress conferred the prestigious Brand Leadership Award on BankMuscat along with leading global brands such as IBM, Intel, Coca Cola, Motorola, Deloitte, TBWA and Nedbank. The accolades also include Asia's Best Brand Award, which recognised 100 top-notch organisations across Asia.
The BankMuscat brand has been built up with consistent innovation and strategic marketing initiatives. Epitomising the distinct Omani heritage, the brand has evolved during the past 30 years to become a towering presence not only in the banking sector but in all arenas of the Sultanate. While endowed with a global outlook, BankMuscat brand remains Omani at heart.
Brand Finance is the world's leading independent brand valuation firm, which specialises in the banking and finance sector bringing unique comparative insight to the performance of bank brands worldwide. Each of the 500 global brands was carefully analysed to assess the 'point-in- time' value. The evaluation was conducted using publicly available information on revenue attributed to key business lines of the bank.
Since it was first compiled in 2005, the BrandFinance® Banking 500 is reckoned the most comprehensive published table of banking brand values in the world. The study is released annually and incorporates data from banks in over 50 markets, listing the world's most valuable 500 banking brands.
The BrandFinance®Banking 500 directly compares the values of the world's leading banking brands. It is the only direct comparison of brand value within the banking industry. The report illustrates how the methodology, findings and value-based marketing techniques can be used for decision-making and to determine the impact of brand equity on business performance.