New data from Brand Finance reveals Egypt’s strongest and most valuable brands continue on upward growth trajectory
29 April 2024, LONDON – National Bank of Egypt maintains its position as Egypt’s most valuable brand, according to new data from Brand Finance, the world’s leading brand valuation consultancy. Tight interest rates and improved profits in the nation’s tough economic environment drive National Bank of Egypt’s brand value growth of 37% to USD655 million. The banking sector dominates 2024’s ranking with four out of ten brands, including National Bank of Egypt, Banque Misr, CIB, and new entrant Arab African International Bank.
Andrew Campbell, Managing Director, Middle East, Brand Finance commented:
“National Bank of Egypt’s surge in brand value reflects a broader trend evident among Egypt’s banking brands. This trend underscores these brands’ strategic leveraging of high interest rates to drive overall performance and elevate brand value. However, there’s a cautionary note. While maximising financial gains, there’s a risk to consumer perceptions and therefore, brand strength. It’s imperative these brands focus on customer-centric strategies to fortify brand positioning during times of economic adversity.”
Despite declining brand strength, National Bank of Egypt also retains its position as the nation’s strongest brand, now rated AA+. Brand Finance data attributes this decline to lower scores for several metrics, including perceptions of price, the brand’s ability to demand a price premium, loyalty, and reputation.
Brand Finance’s research also found that National Bank of Egypt also came out on top for sustainability perceptions, leading across the three key metrics, namely, Environmental, Social, and Governance.
Telecom Egypt (brand value up 14% to USD306 million) has become Egypt’s second strongest brand, up from fifth place previously. Telecom Egypt’s climb follows proactive measures to boost brand awareness through strategic partnerships and milestone initiatives. For instance, in January 2024, Telecom Egypt secured the nation’s first license for 5G installation and operation. Now rated AA+, this rise in brand strength is reflected in enhanced scores in familiarity, consideration, and loyalty for the brand.
Now Egypt’s fastest growing brand, Elsewedy Electric’s brand value has surge by 62% to USD389 million, propelled by stronger business performance and more than 15% improvement in its BSI score. According to Brand Finance data, Elsewedy Electric performs particularly strongly on familiarity and reputation. Following closely behind, tobacco brand Eastern Co has become Egypt’s second fastest-growing brand, up 43%. This rise is fuelled by Eastern Co’s ramped-up production of cigarettes in response to a national shortage, leading to improved revenues and optimistic forecasts.
Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance for more than 25 years, Brand Finance evaluates the strength of brands and quantifies their financial value to help organizations of all kinds make strategic decisions.
Headquartered in London, Brand Finance has offices in over 20 countries, offering services on all continents. Every year, Brand Finance conducts more than 5,000 brand valuations, supported by original market research, and publishes over 100 reports which rank brands across all sectors and countries.
Brand Finance also operates the Global Brand Equity Monitor, conducting original market research annually on over 5,000 brands, surveying more than 150,000 respondents across 38 countries and 31 industry sectors. Combining perceptual data from the Global Brand Equity Monitor with data from its valuation database enables Brand Finance to arm brand leaders with the data and analytics they need to enhance brand and business value.
Brand Finance is a regulated accountancy firm, leading the standardization of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671 and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.
Brand is defined as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services, or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits.
Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Brand Finance evaluates brand strength in a process compliant with ISO 20671, looking at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. The data used is derived from Brand Finance’s proprietary market research programme and from publicly available sources.
Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating.
Brand Finance calculates the values of brands in its rankings using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668. It involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market.
The steps in this process are as follows:
1 Calculate brand strength using a balanced scorecard of metrics assessing Marketing Investment, Stakeholder Equity, and Business Performance. Brand strength is expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.
2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. In luxury, the maximum percentage is high, while in extractive industry, where goods are often commoditised, it is lower. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive database.
3 Calculate royalty rate. The BSI score is applied to the royalty range to arrive at a royalty rate. For example, if the royalty range in a sector is 0-5% and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%.
4 Determine brand-specific revenues by estimating a proportion of parent company revenues attributable to a brand.
5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates.
6 Apply the royalty rate to the forecast revenues to derive brand revenues.
7 Discount post-tax brand revenues to a net present value which equals the brand value.
Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation.
The data presented in this study form part of Brand Finance's proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance.
