- The UAE banks’ combined brand value reached $13.7 billion (Dh50.3 billion).
- Ten UAE banks have been featured among the world’s top 500 most valuable and strongest banking brands of 2021.
According to Brand Finance, the UAE banks’ combined brand value reached $13.7 billion (Dh50.3 billion), losing on average 13 per cent of their brand value year-on-year due to the impact of the Covid-19 pandemic.
Leading the pack is Emirates NBD which sits in 74th position in the overall ranking. Following the sector trend, Emirates NBD suffered a 10 per cent brand value loss this year to $3.7 billion. The bank’s profits took a hit in 2020 due to higher provisions.
First Abu Dhabi Bank’s brand value dropped 10 per cent to $3.6 billion and Abu Dhabi Commercial Bank’s brand value declined 19 per cent to $2.1 billion, sitting as the UAE’s second and third most valuable banking brands, respectively.
Three Emirati brands that have managed to protect their brand values this year somewhat are National Bank of Fujairah, which saw its value increasing two per cent to $259 million and becoming the only UAE bank to record a positive brand value growth.
Among others, Commercial Bank of Dubai value dropped four per cent to $334 million and Mashreq fell seven per cent $484 million.
Globally, the banking industry has seen a dramatic downturn in the past two years, decreasing by two per cent and four per cent in 2020 ($1.33 trillion) and 2021 ($1.27 trillion), respectively.
The world’s most valuable banking brands suffered severe decline in brand value following devastating effects of Covid-19 pandemic, two-thirds record brand value loss. Chinese banks make up one-third of total brand value with ICBC retaining title of world’s most valuable banking brand worth $72.8 billion. Five US banks claim spots in top 10, with Bank of America highest ranked in 5th. JP Morgan is only bank in top 10 to record brand value growth, up three per cent.
David Haigh, CEO of Brand Finance, said banking institutions were the main culprit in the last financial crash; this time around they are a large part of helping people overcome the repercussions of Covid-19.
“Research shows that banks’ responses to the global pandemic have led to a year-on-year increase in overall reputation scores among customers, which no doubt could result in an uptick in brand values in the coming year,” he said.
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