The market capitalization of the top five banks, referred to as the Tier-1 banks or FUGAZ, increased to N2.61 trillion as at close of business, 10th of December, 2021, as investors in these banks gained a total of N151.03 billion during the trading week.
After 5 trading days of the week, all 5 of the tier-1 Nigerian banks enjoyed positive market sentiments, with GTCO leading the growth.
According to data from the Nigerian Exchange (NGX), the market capitalization of the top five banks grew to N2.61 trillion to appreciate by 6.1% during the week.
A summary of the performances of each bank is captured below:
FBNH share price appreciated by 0.8% from N11.80 to N11.90, gaining N3.59 billion, and taking its market capitalization to N427.15 billion at the end of the week. During the week, investors traded 1,198,702,662 units of the bank’s shares valued at N13.69 billion, making the bank’s stock the most traded in volume and value.
The volume of shares traded appreciated by 340.75%, when compared to 271.97 million units traded the previous week. The bank traded the highest number of shares in volume amongst the FUGAZ, trading its highest on Wednesday with 441.93 million units of shares, valued at N5.04 billion.
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.
United Bank for Africa Plc appreciated by 1.9% as its market capitalization closed the week at N275.31 billion, with its share price standing at N8.05. The bank traded a total of 69,161,946 units valued at N534.98 million at the end of the trading day.
In comparison, the bank’s share volume appreciated by 83.55%, from 37.68 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.
GTCO Plc gained a total of N70.63 billion, after its market capitalization appreciated to N779.93 billion from N709.29 billion at the end of the week’s trading session.
The growth can be attributed to the increase in its share price, from N26.50 traded at the end of last week, to N24.10 as at close of business, reflecting an increase of 10.00%.
During the trading week, Investors traded a total of 100,006,386 units of the bank’s shares, valued at N2.42 billion. In contrast with the volume traded last week, share volume for this week declined by 0.08% from 100.09 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’s share price grew by 2.8% to close the week at N9.15, and the market capitalization stood at N325.24 billion.
At the end of the week, investors had traded a total of 131,802,090 units of the bank’s shares valued at N1.20 billion. The total volume traded for the week grew by 33.58%, from a total of 98.67 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 gained N62.79 billion after its market capitalization appreciated to N800.61 billion from N737.82 billion at the end of the week. This appreciation can be attributed to the 8.5% decline in its share price, from N23.50 traded at the end of last week, to N25.50 at the end of this week.
Hence, a total of 65,415,660 units of the bank’s shares were traded during the week, valued at N1.58 billion. The total volume, in comparison with the previous week, depreciated by 29.41%, from 92.68 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.
The Nigerian Exchange Limited (NGX) closed negative week-on-week as ASI depreciated by 0.68% to close at 41,882.97.
The FUGAZ banks make up over 70% of the NSE Banking sector index, hence, strongly influence the growth or otherwise of the index; hence, the NGX banking Index closed negative to depreciate by 5.55% and close at 402.71