Nigeria’s Top Banks Valuation Rises to N2.5trn
Nigeria’s big balance banks market valuation inched higher to N2.519 trillion, according to data obtained from the Nigerian Exchange following recent earnings, and dividend declarations. The tier-1 lenders’ latest valuation is an improvement from selling rallies witnessed in the banking sector in the first quarter.
Top banks in the Tier-1 category are well-known and established sector leaders with strong capital positions and track records of dividend payments to shareholders.
Trading data show that the year-to-date performance of Tier-1 banks (FBNH, UBA, GTCO, ACCESS, and Zenith -FUGAZ) is mixed amidst a fresh selling fury across counters in the local bourse.
In the just concluded week, Zenith Bank’s popularity increased strongly among investors with about a 5.5% weekly gain in the local bourse.
The bank of the year, according to the Banker, valuation rose and crossed N755 billion, maintaining its leading brand identity in the banking sector. Its share price settled at N24.05 amidst a large dividend payout to shareholders.
There is so much to like about the Ajose Adeogun-based financial services behemoth. This includes its sustained year-on-year growth in profitability.
Strong earnings performance over the year has helped the bank maintain a market-friendly dividend policy. In the local bourse, Zenith Bank remains most valuable with a strong buying rating.
GTCO comes closer recently after falling from the cliff, now ranked second most valuable in the banking sector category. As of Friday, the financial services holding company was priced at about N708 billion at a unit price of N24.05.
FBNH worth about N397 billion on the Nigerian exchange, sold at N11.05 per share in the Nigerian bourse. However, the financial holding company is less valuable than Stanbic IBTC – a tier 2 lender in the industry.
As of Friday, Stanbic IBTC is worth more than N479 billion at N37 per share. The largest bank by total assets also has a lower valuation at N389 billion as of Friday’s close.
Based on historical trends, Access Corp Plc has come up significantly as the group continues to implement an acquisition growth strategy to increase its footprint across African markets. In the category, UBA’s valuation was the lowest at N270 billion. The bank share was priced at N7.90 on Friday.
Stock market performance
Zenith Bank gained 5.48% in the just concluded week, while GTCO share closed negative, shedding 3.80% when FBHN jumped 0.45%.
Access Bank led the banking sector’s performance with 11.90% weekly, according to market data and UBA added 0.64% to its market valuation.
Over a month period;
Zenith Bank is down 4.37% and GTCO’s valuation bumped lesser, recording a 2.43% monthly decline in its market valuation.
FBNH is just 0.45% lower over a month. Access Bank however delivered a 25% valuation surged in the same period by 4.32% while UBA share lost 5.39%.
Year-to-date returns:
Access Corp is the banking sector’s higher performer in terms of price movement, gaining 31.58% from the beginning of the year to date. Coming at a long distance, GTCO gained 7.80% in the same period, followed by 3.27% share appreciation recorded by FBNH. UBA’s year-to-date return settled at 2.60% while Zenith’s returns printed much lower at 2.34%.
Final Dividend
Zenith and GTCO, the major contenders in the banking sector paid N3.10 to shareholders after a robust earnings performance in the financial year 2022. Access Plc did N1.50 while UBA did N1.10. FBNH is yet to declare the final dividend amidst glitches in releasing the audited financial statement. The financial services group promised to release its 2022 and first quarter results concurrently this month. #Nigeria’s Top Banks Valuation Rises to N2.5trn#
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