The market capitalization of the top five banks, referred to as the Tier-1 banks increased to N2.44 trillion at the close of business on Friday, September 3, 2021, as investors in these banks gained N11.51 billion during the trading week.
According to data from the Nigerian Exchange (NGX), the market capitalization of the top five banks grew to N2.44 trillion, an appreciation of 0.5% during the week.
The gain can be attributed to the buy-interests witnessed in the share prices of most of the banks, during the five trading days.
A summary of performance for each bank is captured below.
First Bank Holdings Nig. Plc share price remained unchanged at the end of the week as the bank’s market capitalization stood at N269.21 billion. Amid sell-offs and buy-interests, at the end of the five trading sessions, FBNH share price closed at N7.50.
During the week, investors traded about 36,887,009 units of the bank’s shares valued at N275.13 million. The volume of shares traded appreciated by 63.74%, when compared to 22.53 million units traded the previous week.
The bank released their second-quarter result which revealed that Interest income for the period decreased by 19.36%. However, net profit for the period reported a growth of 79.76% from N12.50 billion in Q2 2020 to N22.47 billion in Q2 2021.
United Bank for Nigeria Plc gained N8.55 billion as its market capitalization appreciated from N256.50 billion to N265.05 billion, due to the increase in its share price from N7.50 to N7.75, reflecting a growth of 3.3%.
UBA Plc, during the week, traded a total of 33,693,526 units valued at N256.85 million at the end of the trading day. In comparison, the bank’s share volume depreciated by 14.38%, from 39.35 million traded last week.
UBA Plc is yet to release its second-quarter financial statements for Q2 2021.
GT Holding Company Plc
GTCO Plc gained a total of N8.83 billion after market capitalization appreciated to N819.66 billion from N810.83 at the end of the week’s trading session.
The growth can be attributed to the increase in the share price, from N27.55 traded at the end of last week, to N27.85 as at close of business on Friday, reflecting a growth of 1.1%.
During the trading week, investors traded a total of 24,851,220 units of the bank’s shares valued at N683.15 million. In contrast with the volume traded last week, share volume for this week decreased by 56.95% from 57.72 million.
GT Holding Company is yet to release its second-quarter financial statements for Q2 2021.
Access Bank Plc
Access Bank Plc gained a total of N3.55 billion at the end of the trading week as its market capitalization appreciated from N323.46 billion to stand at N327.02 billion, closing the week at N9.20 per share from N9.10 the previous week.
At the end of the week, investors had traded a total of 89,248,122 units of the bank’s shares valued at N818.95 million. The total volume traded for the week grew by 432.84%, from a total of 16.75 million traded in the previous week. The bank traded the highest number of shares in volume amongst the FUGAZ, trading its highest on Thursday.
Access Bank Plc released its Q2 financial result for the year which recorded an improvement in gross earnings by 14 percent to N450.6 billion, while profit rose by 42.4 percent, surging from N61.03 billion in June 2020 to N86.94 billion in half year, 2021.
Zenith Bank Plc
Zenith Bank Plc lost N9.42 billion after its market capitalization depreciated to N756.66 billion from N766.07 billion at the end of the week. This decline can be attributed to the 1.2% decrease in its share price from N24.40 traded at the end of last week, to N24.10 at the end of this week.
Hence, a total of 56,527,834 units of the bank’s shares were traded during the week, valued at N1.36 billion. The total volume, in comparison with the previous week, appreciated by 46.75%, from 38.52 million units traded last week, making the bank’s stock the most traded in value amongst the FUGAZ during the week. The bank traded its highest number of shares on Wednesday at 16.59 million units valued at N398.20 million.
Zenith Bank released their second-quarter result which revealed that net interest income for the period increased by 1.61%. However, post-tax profit for the period reported a slight growth of 2.21% from N103.83 billion in Q2 2020 to N106.12 billion in Q2 2021.
What you should know
The Nigerian Exchange Limited (NGX) closed negative week-on-week as ASI depreciated by 0.57% to close at 39,261.01.
The FUGAZ banks make up over 70% of the NSE Banking Sector Index, hence, they strongly influence the growth or otherwise of the index
The NGX Banking Index closed negative to decrease by 0.58% and closed at 376.79.