Nigeria's Big Banks Valuation Drops to N2.3trn

Nigeria’s Big Banks Valuation Drops to N2.3trn

Nigeria’s top five banks are worth N2.305 trillion, according to stock market screener data, representing a decline as MarketForces Africa had reported a market valuation of the Tier-1 capital printed at N2.6 trillion. Trading data show that the year-to-date performance of Tier-1 banks (FBNH, UBA, GTCO, ACCESS, Zenith -FUGAZ) is negative.

In the just concluded week, Zenith Bank’s popularity increased strongly among investors with about a 10% weekly gain in the local bourse. The bank of the year, according to the Banker, valuation rose to N756.656 billion, maintaining its leading brand identity in the banking sector. Its share price settled at N24.10. 

There is so much to like about the Ajose Adeogun based financial services behemoth. This includes sustained year-on-year growth in profitability. Strong earnings performance over the year has helped the bank deliver its dividend policy. In the local bourse, Zenith Bank remains most valuable with a strong buying rating.

GTCO comes at a distance after falling from the top, now ranked second most valuable in the banking sector category. As of Friday, the financial services holding company was priced at N614.954 billion at a unit price of N20.90.

FBNH worth N391.259 billion, sold at N10.9 per share in the Nigerian bourse. However, the financial holding company is less valuable compared to Stanbic IBTC – a tier 2 lender in the industry. >>>Nigeria’s Insurers’ Balance Sheet Expands 12% to N2.3trn

As of Friday, Stanbic IBTC worth N399.075 billion, sold at N30.80. The largest bank by total assets valuation is however lower at N293.372 billion as of Friday’s close. In the category, UBA’s valuation was the lowest at N249.656 billion. The bank share was priced at N7.30 on Friday.

Weekly stock market performance

Zenith bank gained 9.05% in the just concluded week, while GTCO share closed flattish when FBHN and Stanbic IBTC saw moderate gains compared to their market sizes. Access Bank was down 1.17%, according to market data and UBA lost 0.68% of its market valuation.

Over a month period;

Zenith bank has gained 19.60% trailed by GTCO at 14.84% while FBNH is just 1.4% higher over a month but Stanbic IBTC has seen its valuation increase by 12%. Access Bank is 4.32% higher and UBA share has gained 2.10%.

Year-to-date returns:

Zenith bank has lost 3.21% of its market worth from the beginning of the year to date. UBA has lost 6.41% in the same period while FBNH is 8.79% down. Access Bank’s share price has depreciated by 13.78% while GTCO is the worst performer with 19.64% price depreciation.

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