The market capitalization of the top five banks, referred to as the Tier-1 banks or FUGAZ, decreased to N2.61 trillion at the close of business on Friday, November 12, 2021, as investors in these banks lost a total of N13.94 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 GTCo leading the decline.
According to data from the Nigerian Exchange (NGX), the market capitalization of the top five banks declined to N2.61 trillion, a depreciation of 0.5% during the week. A summary of the performances of each bank is captured below.
First Bank of Nigeria Holdings (FBNH) Plc share price appreciated to close the week at N12.00, 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 8.1% from N11.10 to N12.00
During the week, investors traded 230,669,797 units of the bank’s shares valued at N2.68 billion, making the bank’s stock the most traded in volume and value amongst the FUGAZ.
The volume of shares traded appreciated by 22.20%, when compared to 188.77 billion units traded the previous week. The bank traded the highest number of shares in volume amongst the FUGAZ, trading its highest on Friday with 129.77 million units of shares, valued at N1.54 billion.
FBNH Plc’s third-quarter result is yet to be released.
United Bank for Africa Plc remained unchanged as its market capitalization closed the week at N288.99 billion, with its share price standing at N8.45.
UBA Plc traded a total of 28,529,971 units valued at N238.17 million at the end of the trading week.
In comparison, the bank’s share volume depreciated by 72.74%, from 104.64 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 N22.07 billion after its market capitalization depreciated to N807.89 billion from N829.96 billion at the end of the week’s trading session.
The decline can be attributed to the decrease in its share price, from N28.20 traded at the end of last week, to N27.45 as at close of business on Friday, reflecting a decrease of 2.70%.
During the trading week, Investors traded a total of 55,769,096 units of the bank’s shares, valued at N1.54 billion.
In contrast with the volume traded last week, share volume for this week advanced by 76.38% from 31.62 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’s share price declined by 1.6% to close the week at N9.35, and the market capitalization stood at N332.35 billion.
At the end of the week, investors had traded a total of 53,763,041 units of the bank’s shares valued at N505.08 million. The total volume traded for the week declined by 5.92%, from a total of 57.14 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 N18.84 billion after its market capitalization depreciated to N753.52 billion from N772.35 billion at the end of the week. This depreciation can be attributed to the 2.4% decline in its share price, from N24.60 traded at the end of last week, to N24.00 at the end of this week.
Hence, a total of 83,712,969 units of the bank’s shares were traded during the week, valued at N2.03 billion. The total volume compared to the previous week, appreciated by 49.11%, from 56.14 million units traded last week.
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 Nigerian Exchange Limited (NGX) closed positive week-on-week as ASI appreciated by 2.95% to close at 43,253.01.
The FUGAZ banks make up over 70% of the NSE Banking Sector Index, hence, they strongly influence the growth or otherwise of the index. However, the NGX Banking Index closed positive to appreciate by 0.63% and close at 397.98.