The market capitalization of the top five banks, referred to as the Tier-1 banks or FUGAZ, decreased to N2.63 trillion at the close of business on November 5, 2021, as investors in these banks lost a total of N36.99 billion during the trading week.
After the 5 trading days of the week, 3 of the 5 tier-1 Nigerian banks suffered negative market sentiments, with Zenith Bank leading the decline. According to data from the Nigerian Exchange (NGX), the market capitalization of the top five banks declined to N2.63 trillion, a depreciation of 1.4% during the week.
A summary of the performance of each bank is captured below.
FBNH’s share price appreciated to close the week at N11.10, gaining N1.79 billion, and taking its market capitalization to N398.44 billion at the end of the week. Amid sell-offs and buy-interests, at the end of the trading week, FBNH share price appreciated by 0.5% from N11.05 to N11.10.
During the week, investors traded 188,770,363 units of the bank’s shares valued at N2.01 billion, making the bank’s stock the most traded in volume and value amongst the FUGAZ.
The volume of shares traded depreciated by 73.73%, when compared to 718.65 billion units traded the previous week. The bank traded the highest number of shares in volume amongst the FUGAZ, trading its highest on Wednesday with 58.61 million units of shares, valued at N614.76 million.
FBNH Plc’s third-quarter result is yet to be released.
United Bank for Africa Plc declined in value by N5.13 billion as its market capitalization closed the week at N288.99 billion, with its share price closing the trading week at N8.45.
UBA Plc traded a total of 104,643,671 units valued at N886.57 million at the end of the trading week.
In comparison, the bank’s share volume depreciated by 8.06%, from 113.81 million traded last week.
UBA Plc released its Q3 2021 financials, revealing that net interest income appreciated by 23.25% to N229.27 billion from N186.02 billion, while total assets grew to N8.35 trillion from N7.7 trillion. In addition, the company’s profit after tax rose by 35.61% to N104.60 billion, up from N77.13 billion in the same period of 2020.
GT Holding Company Plc
GTCO Plc lost a total of N13.24 billion after its market capitalization depreciated to N829.96 billion from N843.20 billion at the end of the week’s trading session.
The decline can be attributed to the decrease in its share price, from N28.65 traded at the end of the previous week, to N28.20 at the close of business on Friday, November 5, 2021, reflecting a decrease of 1.60%.
During the trading week, Investors traded a total of 31,620,804 units of the bank’s shares, valued at N896.66 million.
In contrast with the volume traded the previous week, share volume for the week declined by 53.62% from 68.17 million.
In Q3 2021, the Group reported a decline of 7.48% in interest income from N74.52 billion recorded in the corresponding period of September 2020 to N68.94 billion in the current period. However, post-tax profit appreciated by 4.11% from N48.01 billion in 2020 to N49.99 in the current period.
Access Bank Plc
Access Bank Plc share price remained unchanged to close the week at N9.50, while the market capitalization stood at N337.68 billion.
At the end of the week, investors had traded a total of 57,144,582 units of the bank’s shares valued at N536.13 million. The total volume traded for the week declined by 31.06%, from a total of 82.88 million traded in the previous week.
Access Bank Plc released its Q3 2021 financial result which revealed a decline in net interest income by 3.43% to N67.66 billion, while profit after tax dropped by 9.11%, from N38.46 billion in September 2020 to N34.95 billion in September 2021.
Zenith Bank Plc
Zenith Bank Plc lost N20.41 billion after its market capitalization depreciated to N772.35 billion in the review week from N792.76 billion at the end of the previous week. This depreciation can be attributed to the 2.6% decline in its share price, from N25.25 traded at the end of the previous week, to N24.60 at the end of the review week.
Hence, a total of 56,142,141 units of the bank’s shares were traded during the week, valued at N1.40 billion. The total volume, in comparison with the previous week, appreciated by 58.72%, from 35.37 million units.
The bank released its nine-month financial result for the period ended September which revealed that Interest income for the period declined by 3.13% to N308.84 billion from N318.82 billion in the corresponding period of 2020. However, post-tax profit for the period reported a marginal growth of 0.80% from N159.32 billion in 2020 to N160.59 billion in the current period.
What you should know
The All-Share Index dropped from 42,038.6 points recorded as of the end of the previous week to 42,014.5, representing a 0.06% decline.
The FUGAZ banks make up over 70% of the NSE Banking Sector Index, hence, strongly influence the growth or otherwise of the index; however, the NGX Banking Index closed positive to appreciate by 0.66% and close at 403.27.