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Developing a Model for Brand Valuation in the Banking Industry with Emphasis on Iraq’s Indigenous and Local Elements: A Case Study of Rafidain Bank of Iraq
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Ayman Ibrahim Tawfiq Al-Azzawi1   , Naser Seifollahi Anar *2 , Mohammad Bashokouh Ajirlou3 , GHasem Zarei3 |
1- PhD Student, Department of Business Administration, Faculty of Social Sciences, University of Mohaghegh Ardabili, Ardabil, Iran
2- Professor, Department of Business Administration, Faculty of Social Sciences, University of Mohaghegh Ardabili, Ardabil, Iran , naser_seifollahi@yahoo.com
3- Professor, Department of Business Administration, Faculty of Social Sciences, University of Mohaghegh Ardabili, Ardabil, Iran |
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Abstract: (18 Views) |
Objective: This study aims to develop a model for brand valuation in the banking industry that emphasizes Iraq’s indigenous and local elements, and to empirically test the model using Rafidain Bank as a case study.
Methodology: In terms of its purpose, the study is applied; in terms of its design, it is descriptive-analytical. Data were collected from the bank’s financial statements and official reports, reports issued by Iraq’s Ministry of Finance and Central Bank, the Brand Finance report (2025), and Damodaran’s country risk database (2026). The bank’s brand value was estimated using three standard approaches—cost, market, and income—and implemented within a five-layer model based on ISO 10668 and ISO 20671 standards.
Findings: The brand’s value was estimated at approximately USD 530 million using the cost approach (replacement cost), USD 345 million using the market approach (adjusted for country risk and brand strength), and USD 131 million using the income approach (the relief-from-royalty method, with a discount rate of 18.3%). The final weighted value of Rafidain Bank’s brand was estimated to range from USD 196 million to USD 399 million, with a weighted average of approximately USD 284 million. The valuation pattern—cost exceeding market, and market exceeding income—suggests that Rafidain’s brand is a substantial trust-based asset that has not yet been fully converted into competitive revenue streams. Four indigenous and local elements affecting brand value were also incorporated into the assessment of brand strength and the determination of the discount rate: historical and identity-based capital, institutional ties to the state, the geographic reach of the branch network, and social and religious legitimacy.
Conclusion: The proposed model is consistent with international standards and can be applied using real-world data in the Iraqi context. The findings underscore the importance of accounting for indigenous and structural factors when valuing the brands of state-owned and developing-country banks, in order to narrow the gap between the value of their intangible assets and the income streams those assets generate.
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Article number: 21 |
| Keywords: Brand valuation, banking industry, indigenous and local elements, Rafidain Bank, ISO 10668 |
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Full-Text [PDF 632 kb]
(2 Downloads)
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Article type: Research |
Subject:
General
Received: 2024/07/20 | Accepted: 2024/09/5 | Published: 2024/09/21
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