Nigeria's Tier-1 Banks Market Valuation Spikes to N3trn
Nigeria Top Big Banks

Nigeria’s Tier-1 Banks Market Valuation Spikes to N3trn

Nigeria’s top five banks’ combined market valuation has inched near N3 trillion, according to stock market screener data, representing a significant jump as MarketForces Africa had reported a market valuation of the Tier-1 capital bank below N2.5 trillion.

The local lenders reported spikes in top line amidst headwinds, their separate audited reports showed and scaled through the hurdle of earnings pressures in the first quarter despite pressure from the naira crisis.

Trading data show that the year-to-date performance of Tier-1 banks (FBNH, UBA, GTCO, ACCESS, Zenith -FUGAZ) has also improved as the banking index spikes.

Access holdings year to date return ranked higher in the tier-1 capital stock market performance, according to data screened by analysts. The stock was followed by FBNH

In the just concluded week, Zenith Bank’s popularity increased among value hunters, recording more than a 7% gain in the last seven trading sessions on the local bourse.

The bank of the year, according to the Banker, valuation rose to N897.939 billion, maintaining its leading brand identity in the banking sector. Its share price settled at N28.6 following healthy earnings growth in the first quarter of 2023. 

There is so much to like about the Ajose Adeogun-based financial services behemoth. This includes sustained year-on-year growth in profitability.

Equities analysts said strong earnings performance over the year has helped the bank deliver its dividend policy. Zenith Bank remains most valuable in the local bourse with a strong buying rating.

Traded at N28.3 per share, GTCO Plc valuation comes close after falling from the top, now ranked second most valuable in the banking sector category. As of Friday, the Orange brand financial services holding company was priced at N834.4 billion on 29.43 billion outstanding shares in the market.

Following a fast and furious bargain hunting, FBNH worth about N512 billion, sold at N14.25 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.

Selling at N44 as of Friday close, Tier-2 bank, Stanbic IBTC worth N570 billion. Access Holdings, the largest financial services by total asset has also seen its market valuation increase amidst stock market rallies.

Access Plc is however lower at N429 billion as of Friday’s close versus peers’ valuation.  UBA’s valuation was the lowest in the category at about N320 billion. The bank share was priced at N79.35 on Friday.

Weekly stock market performance

Zenith Bank gained 7.55% in the just concluded week, while GTCO shares closed with 5% share price appreciation in the last seven days of trading sessions. FBHN’s share also jumped 5.17% amidst underwhelming earnings performance in 2022.  

Meanwhile, Access Holdings’ share price gathered momentum with a 12.73% weekly gain, according to market data. Trailing Access share uptick, UBA pushed higher with a 6.86% increase in its market valuation.

Month-to-date returns

Zenith Bank recorded about a 21% gain month to date, tracking behind GTCO’s 24.62% share appreciation in the same period.  In the month, FBNH’s share price has advanced more than 30%.

Access Holdings jumped by 18.66% with support from its last week’s rally that pushed prices upward. UBA share price also increased by 18.35% over a month, providing investment returns covering inflation rate exposures.

Year-to-Date Returns

Zenith Bank has boosted its market valuation with a 21.70% valuation jump. The returns track along with the inflation rate movement amidst an improved estimate for 2023.  UBA gained 21.43% in the same period while FBNH Plc has seen a 33.18% year-to-date gain.

Access Holdings top the performers list with more than 45% year-to-date return, GTCO also delivered an impressive return, recording 27.13% year-to-date return. #Nigeria’s Tier-1 Banks Market Valuation Spikes to N3trn Geregu Spikes to N772.5bn as Otedola Buys More Shares