Tier-1 Banks Valuation Rises to N5.7trn after Earnings
The combined market value of Nigerian Tier-1 banks increased by more than N40 billion week on week, according to data tracked by MarketForces Africa.
The top banks posted significant earnings growth at the end of 9 months of the financial year 2024. The growth in earnings performance was bolstered by loan repricing and surges in investment securities due to a higher interest rate environment.
Earnings performance varied irrespective, but they have similar pressures relating to asset quality, with an unknown amount of COVID-19 forbearance hanging on their neck—but kept away from the public.
Analysts noted that non-performing loans increased for some players but were still below the regulatory benchmark.
Two out of the five big lenders traded negative despite a good earnings outing in the third quarter. Three financial services groups—GTCO, Zenith, and ACCESS Holdings bucked negative price movement in the equities market last week.
At the end of trading sessions, the top 5 financial services companies’ total value rose by N40.85 billion due to N5.669 billion or $3.54 billion on Friday.
GTCO topped performers among the tier-1 category with more than N97.122 billion weekly gain. The orange branded financial services company was trailed by its Ajose Adeogun rival, Zenith bank, which gained N42.385 billion.
Access Holdings, the lowest among the top tier in terms of market value, also saw N1.77 billion weekly gain. FBN Holdings lost N62.817 billion from its market value due to selloffs. UBA plunged by N37.619 billion following toned down earnings growth.
At the close of the trading session, GTCO PLC market valuation inched higher by 6.3% week on week to close at N1.627 trillion on the Nigerian Exchange.
Zenith Bank climbed by 3.4% week on week to settle at N1.295 trillion in the equities market. Pan African lender UBA lost 3.7% of its market value last week to settle at N991.783 billion on Friday.
Also, FBN Holdings market valuation declined by 6.1% week on week amidst rights issue offer to settle at N969.172 billion. Access Holdings halted price depreciation with a 0.2% weekly gain amidst the third quarter earnings festival on the Nigerian Exchange. FX Stability: CBN Sells 122.671m Dollars to 46 Authorised Dealers
