Global Banks No Match For Capitec

The Lafferty Group, a global banking advisory firm, has rated Capitec as the top bank in the world in its inaugural Lafferty Bank Quality Ratings index

Capitec beat out large international banking groups the likes of HSBC, Deutsche Bank, Goldman Sachs and JPMorganChase to take top spot, as the “too big to fail” banks showed signs of struggling, according to Business Report.

Flying the South African flag high, Barclays Africa also fared well, placing in the top 10 of the world’s best banks.

The Lafferty Bank Quality Ratings (LBQR) index rated 100 financial institutions from 28 countries across the globe, using quantitative and qualitative criteria like strategy, culture, customer care, brand promise and financial performance.

“The methodology is founded on extensive conversations with senior bankers, regulators and shareholders and can be viewed as an antidote to excessive focus on traditional measures such as return on equity or earnings per share, favoured by securities analysts,” Lafferty Group chairman Michael Lafferty was quoted saying in a Bobs Guide report.

“There is evidence that investors appreciate and will pay for quality. Our ratings explain what the stock market is rewarding and why.”

Other global financial institutions that received impressive ratings in this year’s index included India’s HDFC, the US’ Discover, Public Bank and Hong Leong in Malaysia, Nigeria’s Sterling Bank, the National Bank of Kuwait, and ADIB from the United Arab Emirates.

Meanwhile, Capitec made its debut on Brand Finance’s most valuable brands for 2016, ranking 347th overall with a brand value of $280 million (R4,5 billion). It is the sixth-most valuable bank in SA, Business Tech reports.

Standard Bank, which was also rated in the LBQR index, overtook Absa and FNB as the most valuable banking brand, increasing its brand value by 4,4% to $1,3 billion (R20,9 billion) over the past year.

FNB retained its position as the second-most valuable banking brand in the country, valued at $1,05 billion (R16,9 billion), down from $1,4 billion (R22,5 billion) last year, while last year’s most valuable bank Absa slipped to third place, now being worth $1,01 billion (R16,2 billion), down 35,9% from $1,5 billion (R24,2 billion) last year.

Nedbank’s brand value declined by 20,1% from $1,16 billion (R18,6 billion) last year to $934 billion (R15 billion) this year.

The decline in value of SA’s biggest banks has largely been attributed to President Jacob Zuma’s reshuffling of Finance Ministers in December, now infamously referred to as ‘Nenegate’ or 9/12, which cost the economy up to R500 billion.

source: Destinyconnect


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