The market capitalization of the top five banks, referred to as the Tier-1 banks or FUGAZ, appreciated by 2.56% to close at N2.71 trillion as at 11th of March, 2022, as investors in these banks gained a total of N67.73 billion during the trading week.
After 5 trading days of the week, 4 of the 5 tier-1 Nigerian banks enjoyed positive market sentiments, with GT Holdings Co Plc leading the gainers.
According to data from the Nigerian Exchange (NGX), the market capitalization of the top five banks grew to N2.71 trillion to appreciate by 2.56% during the week.
A summary of the performances of each bank is captured below.
FBNH PLC
FBNH’s share price grew by 2.67% to close the week at N11.55, with its market capitalization at N414.59 billion at the end of the week. Amid sell-offs and buy-interests, at the end of the trading week, FBNH share price stood at N11.55.
FBNH Plc’s third-quarter 2021 result showed that Interest Income dropped by 12.63% Y-o-Y to N260.12 billion, from N297.71 billion recorded in the same period of 2020. Similarly, Net interest income declined by 15.45% Y-o-Y to N162.96 billion, against N192.74 billion recorded in the corresponding period of last year. Profit after tax declined significantly by 40.15% Y-o-Y to N40.79 billion during the period under review.
The bank is yet to release its Audited 2021 Full-year financial result.
UBA PLC
United Bank for Africa Plc appreciated by 3.64% as its market capitalization closed the week at N292.41 billion gaining a total of N10.26 billion w-o-w, with its share price standing at N8.55.
UBA Plc released its FY 2021 financials, revealing that net interest income appreciated by 22.06% to N316.71 billion from N259.47 billion, while total assets grew to N8.54 trillion from N7.69 trillion. In addition, the company’s profit after tax rose by 8.72% to N118.68 billion, up from N109.16 billion in the same period of 2020.
GT Holding Company Plc
GTCO Plc appreciated by N29.43 billion after its market capitalization grew to N794.64 billion from N765.21 billion at the end of the week’s trading session.
The growth can be attributed to the increase in its share price, from N26.00 traded at the end of last week, to N27.00 as at close of business, reflecting an increase of 3.85%.
The Audited 2021 FY financial result revealed that the Group reported a decline of 12.77% in interest income from N288.28 billion recorded in the corresponding period of 2020 to N251.47 billion in the current period. However, post-tax profit depreciated by 13.21% to N175.00 in the current period.
Access Bank Plc
Access Bank Plc’s share price remained unchanged to close the week at N10.15, and the market capitalization stood at N360.78 billion.
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. The bank is yet to file its FY 2021 Audited financial result.
Zenith Bank Plc
Zenith Bank Plc gained N17.27 billion w-o-w after its market capitalization appreciated to N847.71 billion from N830.44 billion at the end of the week. This appreciation can be attributed to the 2.08% growth in its share price, from N26.45 traded at the end of last week, to N27.00 at the end of this week.
The bank’s Audited 2021 FY financial result for the period ended December, revealed that Interest income for the period grew by 7.05% to N427.60 billion from N420.81 billion in the corresponding period of 2020. However, post-tax profit for the period reported a growth of 6.07% from N230.57 billion in 2020 to N244.56 billion in the current period.
What you should know
- The Nigerian Exchange Limited (NGX) closed positive week-on-week as ASI appreciated by 0.36% to close at 47,437.38.
- The FUGAZ banks make up over 70% of the NSE Banking sector index, hence, strongly influencing the growth or otherwise of the index. The NGX banking grew by 1.29% from 438.81 to close at 444.46 points.