BIZ BUZZ: BDO deemed most valuable PH bank brand
What is the most valuable bank brand in the Philippines?
According to a new report from London-based global brand valuation consultancy Brand Finance, it’s BDO Unibank, with its brand value estimated at $2.5 billion, up 14 percent from last year.
This means that if the country’s largest bank were to sell just its brand—excluding operations and other assets—]it would cost it about 17 percent of its market capitalization.
Ranking next to BDO is Bank of the Philippine Islands (BPI), whose brand value gained 22 percent to $1.5 billion, followed by Metropolitan Bank and Trust Co. (Metrobank), whose brand value improved by 5 percent to $1.2 billion, Brand Finance reckoned.
Globally, BDO climbed nine notches to become the 117th most valuable among 500 brands ranked by Brand Finance across the world. BDO kept its AAA brand strength rating while its Brand Strength Index (BSI) score fell 1.31 points to 85.18 out of 100, the firm said.
“The brand strives to achieve strategic resilience by integrating sustainability throughout its business operations, embedding sustainable principles into decision-making, partnerships and product development processes,” the report said.
One example cited was BDO’s involvement in “blue” financing to address the water crisis in the country. The bank issued its first $100-million blue bond this year.
Meanwhile, BPI gained 2.83 points in the BSI to 83.16, while maintaining its brand strength rating of AAA-.
“To remain competitive in the market and to stay relevant to stakeholders, BPI strives to continuously innovate and be at the forefront of emerging trends and technologies to enhance banking services. Recently, BPI’s digital banking app introduced its latest feature to pay via QR codes, giving users enhanced convenience without needing to cash in to e-wallets before making payments,” Brand Finance said.
Metrobank maintained its brand strength rating at AA+ while its BSI score increased by 0.23 points to 77.95.
“As the Philippines’ second largest private universal bank, Metrobank strives to enable and empower retail and business clients with customized financial products and services,” Brand Finance said.
It noted the record $1-billion fundraising of Metrobank that was warmly received by global investors, which it said had demonstrated the strength of its credit and track record.
More than half (34 out of 52) of banking brands in Southeast Asia improved their brand value, with an average brand value growth of 4 percent, mainly driven by improved forecasts and marginally stronger BSI scores. All nine Philippine bank brands rated by Brand Finance grew their brand value, with only three posting BSI score declines. —Doris Dumlao-Abadilla INQ
