Investors of FBN, UBA, 3 other banks lose N8bn as market cap declines

The market capitalization of the top five banks, referred to as the Tier-1 banks or FUGAZ, depreciated by 0.30% to close at N2.68 trillion as at 18th of February, 2022, as investors in these banks lost a total of N8.03 billion during the trading week.

After 5 trading days of the week, 4 of the 5 tier-1 Nigerian banks enjoyed positive market sentiments, while Guaranty Trust Holding Co Plc suffered a decline.

According to data from the Nigerian Exchange (NGX), the market capitalization of the top five banks dropped to N2.68 trillion, depreciating by 0.30% during the week.

FBNH’s share price grew by 2.70% to close the week at N11.40, with its market capitalization at N409.21 billion at the end of the week. Amid sell-offs and buy-interests, at the end of the trading week, FBNH share price stood at N11.40.

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United Bank for Africa Plc remained unchanged as its market capitalization closed the week at N292.41 billion, with its share price standing at N8.55.

GTCO Plc depreciated by N38.26 billion after its market capitalization fell to N771.10 billion from N809.36 billion at the end of the week’s trading session.

The decline can be attributed to the decrease in its share price, from N27.50 traded at the end of last week, to N26.20 as at close of business, reflecting a decrease of 4.73%.

Access Bank Plc’s share price appreciated by 1.47% to close the week at N10.35, and the market capitalization stood at N367.89 billion.

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.

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Zenith Bank Plc gained N14.13 billion w-o-w after its market capitalization appreciated to N841.43 billion from N827.30 billion at the end of the week. This appreciation can be attributed to the 1.71% growth in its share price, from N26.35 traded at the end of last week, to N26.80 at the end of this week.

The bank’s nine-month financial result for the period ended September 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 FUGAZ banks make up over 70% of the NSE Banking sector index, hence, strongly influencing the growth or otherwise of the index; hence, the NGX banking grew by 1.58% from 443.10 to close at 450.09 points.